Rauschenberger Proposes $1.357 Billion Property Tax Relief Plan

A $200,000 home would receive an approximate average of $2,000 in annual property tax savings

Bismarck, ND – North Dakota State Tax Commissioner Ryan Rauschenberger, today, released a comprehensive three-part property tax relief plan. The plan will boost state funded property tax relief from $857 million to $1.357 billion in the next biennium. “As Deputy Tax Commissioner, I worked closely with legislators in the two last sessions to champion state funded property tax relief,” said Rauschenberger. “The plan we released today will build upon the success those programs provided and reduce the total local property tax burden by over 50%.”

The plan starts by increasing funding for local school tax relief to include increases in property valuation and school enrollment. “Home values continue to rise and our state’s schools are expecting to see some 11,000 more students.” continued Rauschenberger. “This plan will make good on the state’s commitment to fund 80% of the cost of local education by increasing school property tax relief from $657 million to $857 million.”

Rauschenberger’s plan also increases the 12% across-the-board property tax relief implemented last legislative session to 25%. According to Rauschenberger, “Now that the state share of local education is at 80%, we can turn our attention to the relieving the tax burden levied by city, county and other political subdivisions.” Under this plan, funding for across-the-board property tax relief would increase from $200 million to $500 million in the next biennium.

The final leg of our three-part plan dramatically expands the Homestead Tax Credit program from $20 million to $50 million. “No one is more adversely affected by property taxes than are our citizens who live on fixed incomes,” said Rauschenberger. “Our plan will target relief to low income seniors and the disabled.” The plan increases the income eligibility threshold from $42,000 to $63,000, removes Social Security payments from the income formula and doubles the maximum reduction from the first $100,000 to the first $200,000 in home value.

“I believe our state will have the necessary resources to dramatically increase local property tax relief and fully fund all other priorities especially those dealing with the impact of oil and gas development in western North Dakota,” said Rauschenberger. “Of course, we must also continue to reform our property tax system and I fully support the work of the Governor’s Property Tax Taskforce to increase transparency and accountability to empower local property taxpayers.”

Rauschenberger was appointed North Dakota State Tax Commissioner in January 2014. He also served as Deputy Tax Commissioner from July 2009 to January 2014. Prior to joining the tax department, Ryan also served as the manager of Energy Development at the North Dakota Department of Commerce and as a Certified Public Accountant with the nationally renowned firm of Price Waterhouse and Cooper. He received his Bachelor of Accounting and Masters of Business Administration from the University of North Dakota. Rauschenberger is the Republican endorsed candidate for North Dakota State Tax Commissioner in this November’s general election.