This presentation and the estimates contained in it are based on 2010 property taxes.

As with any presentation, supporting documents like these may be difficult to interpret without the benefit of the speaker’s comments. Please note the tax shift estimates are for demonstration purposes only. They are not intended to imply that the state legislature would choose to shift the entire burden of property taxes onto only one other tax. These estimates are not the official fiscal note for Measure No. 2 that will eventually be issued by the Office of State Tax Commissioner.

North Dakota Office of State Tax Commissioner Cory Fong, Tax Commissioner

North Dakota State Tax System Like a 3-Legged Stool (2010)
Collections (in Millions $)

1. Sales/Use Taxes = $776.4 2. Income Taxes 3. Property Taxes = $576.3 = $816.2
0.0% 10.0% 20.0%

35.8% 26.6% 37.6%
30.0%

(State) (State) (Local)
40.0% 50.0%

Office of State Tax Commissioner Cory Fong, Tax Commissioner

www.nd.gov/tax 701.328.7088

Major Taxes as a Percent of Income
Family of 3 - $50,000 per year
10% Percent of income going to taxes
0.7% 1.5% 0.6% 1.9% 0.5% 1.9%

8%

6%

0.4% 1.5%

0.6%

5.1%

0.4% 3.9% 2.4% 0.6% 2.2% 4.4%

4%
2.8%

2.6%

2%
2.4% 1.0% 2.7% 2.4%

1.6% Billings 5.6% Minneapolis 10% Sioux Falls 5.2%

2.1%

2.9%

0%
Fargo 5.7% Cheyenne 4.4% Omaha 9% US Average 8.7%

Income

Property

Sales

Auto

SOURCE: Tax Rates and Tax Burdens in the District of Columbia – A Nationwide Comparison 2009, Government of the District of Columbia

Office of State Tax Commissioner Cory Fong, Tax Commissioner

www.nd.gov/tax 701.328.7088

State, 0.3% Townships, 2.2%

Schools, 45.1%

Misc. Districts, 1.6%

Counties, 29.9%

Cities, 20.9%

Schools

Cities

Counties

Misc. Districts

Townships

State
www.nd.gov/tax 701.328.7088

Office of State Tax Commissioner Cory Fong, Tax Commissioner

Schools
Cities Counties Townships Misc Districts

shift to

primarily oil/gas taxes Sales Income Oil/Gas Alcohol & Tobacco Lottery & Gaming Financial Institution Other State Resources
www.nd.gov/tax 701.328.7088

shift to

Office of State Tax Commissioner Cory Fong, Tax Commissioner

If property tax is abolished,
►the lost revenue would need to be replaced

Sales tax rate would double
Current rate 5% New rate 10%

Office of State Tax Commissioner Cory Fong, Tax Commissioner

www.nd.gov/tax 701.328.7088

If property tax is abolished,
►the lost revenue would need to be replaced

Individual Income Tax rates would increase 279% over 2011 rates
►Across the board increases! 2011 rates 1.51% 2.82% 3.13% 3.63% 3.99%
Office of State Tax Commissioner Cory Fong, Tax Commissioner

New rates 5.72% 10.69% 11.85% 13.75% 15.11%
www.nd.gov/tax 701.328.7088

If property tax is abolished,
►the lost revenue would need to be replaced

Corporation Income Tax rates would increase 720% over 2011 rates
2011 rates 1.68% 4.23% 5.15% New rates 13.9% 34.6% 42.2%

Office of State Tax Commissioner Cory Fong, Tax Commissioner

www.nd.gov/tax 701.328.7088

Office of State Tax Commissioner ► taxinfo@nd.gov ► www.nd.gov/tax ► 701.328.7088 or 877.328.7088 ► 600 E Boulevard Ave, Dept. 127 Bismarck ND 58505-0599

Office of State Tax Commissioner Cory Fong, Tax Commissioner

www.nd.gov/tax 701.328.7088

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