North Dakota Voters Reject Property Tax Cap Increases

Voters in Divide and Traill counties, North Dakota, rejected ballot measures on November 3 to increase property taxes beyond a 3% cap established by the state Legislature in 2025. In Divide County, 53.3% of voters defeated a proposed 2% increase, while 61.6% in Traill County rejected a 6.41% increase. These results represent the first failed attempts to bypass the limit since its implementation.

Across the state, seven county measures for increased mill levies failed, with only one passing. The North Dakota Association of Counties has called for the removal of the cap to maintain local financial flexibility, arguing that local officials understand community needs best. The organization is also seeking exceptions for costs related to health insurance, elections, and jails.

County officials warned that the defeats will necessitate budget cuts, including salary freezes, the conversion of full-time positions to part-time, and delays to road projects. Despite these warnings, House Finance and Taxation Committee Chairman Craig Headland indicated there is currently no appetite among lawmakers to change the limitation. The results suggest the state legislature is unlikely to modify the cap in the upcoming session, forcing local governments to manage priorities within existing spending limits.