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Published May 15, 2012, 04:47 PM

Study Calls ND Property Tax Abolition 'Risky'

BISMARCK, N.D. (AP) — A new study says North Dakota's proposal to abolish property taxes would put schools and local services at the mercy of oil revenues.

By: Associated Press,

BISMARCK, N.D. (AP) — A new study says North Dakota's proposal to abolish property taxes would put schools and local services at the mercy of oil revenues.

The study by the Center on Budget and Policy Priorities in Washington says no other state has tried to abolish property taxes.

The center's Michael Leachman says local schools and governments rely on property taxes for stable revenues.

Leachman says if property taxes go away, the Legislature would probably replace them with oil taxes, and those collections are volatile.

North Dakotans will vote in June on Measure 2. It is a constitutional amendment to abolish property taxes.

Supporters say the change will spur economic growth but Leachman says those claims are exaggerated.

He says Measure 2 will just hand a fat tax break to out-of-state property owners.


Copyright 2012 The Associated Press.

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