Hoeven added $100 million in property tax relief and $100 million in income tax relief to the proposed plan, which he presented in Bismarck and Fargo Tuesday.
"Our growing, more diversified economy in North Dakota is producing more revenue, which allows us to expand on our tax relief and education funding proposal presented last winter," Hoeven said in an official press release from his office.
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If the Legislature passes the plan, homes valued at $100,000 could see an annual savings of $337 on their property tax statements. Income taxes for North Dakotans could be reduced anywhere from 8 to 20 percent dependent on what income bracket the individual is part of.
To reduce the tax burden, the additional $100 million is allocated in state funds on a per-student basis to school districts. The funds for property tax relief, now totaling $300 million, become an ongoing part of the regular per-student payment distributed through the school aid formula. The average reduction in mills has been changed from 50 to 75, to occur in North Dakota school districts by the second year of the biennium. It occurs when the districts receive the state funding by making an equal reduction, dollar for dollar, in the revenues collected from local property taxes.
In education funding a minimum of $100 million more has been included in the plan, pending the recommendations of the Governor's Commission on Education Improvement.
The additional allocations boosts North Dakota's share of kindergarten through 12th grade funding to 72 percent of the cost of education in the second year of the biennium, compared to 49 percent today.
What does this mean to the average property tax payer?
"The plan reduces the average general fund school levy by 40 percent, and a typical property tax statement by nearly 20 percent," reads a detailed press release from Gov. Hoeven's office.
For example, an average 1,300 acre farm, with cropland and pasture, could save around $1,300 annually.
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