A
ballot question aimed at eliminating property taxes in North Dakota was overwhelmingly rejected on Tuesday, with critics arguing it would severely impact funding for essential services. The proposal, Measure 4, was one of several statewide ballot questions addressing property taxes that appeared on ballots across the country.

    While most measures, including significant new restrictions on property taxes in Georgia and Florida, passed, indicating voter frustration over recent tax increases, North Dakota's proposed ban faced strong opposition from a coalition of over 80 groups. State officials estimated the ban would cost $3.15 billion over two years, prompting concerns that local governments would have to cut services or introduce new income or sales taxes.

    Critics argued that eliminating property taxes without specifying an alternative would create bigger problems than homeowners currently face. Realtor.com Chief Economist Danielle Hale noted that while North Dakota's property tax system may need reform, getting rid of it entirely could be detrimental.

    Measure 4 was defeated by a wide margin, with 63.5% voting against the proposal and 36.5% in favor. Florida and Georgia voters approved measures to limit annual property tax increases, but with different approaches that could impact their housing markets differently.

    Florida's approach allows for an annual inflation adjustment of the homestead property tax exemption, preventing distortions in the market by applying uniformly to all homeowners. In contrast, Georgia's measure caps annual property tax increases at the rate of inflation, but only for existing homeowners, potentially discouraging new residents from accessing housing and shifting purchasing patterns.

    Oklahoma voters rejected a proposal for new special tax districts, which would have allowed municipalities to create public infrastructure districts with the authority to issue bonds for improvements. Opponents argued it would create a system ripe for abuse by developers, who could pass along repayment obligations to homeowners in the form of higher property taxes.