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Tax Foundation President Scott Hodge on North Dakota voters rejecting a measure to eliminate the property tax in the state.
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A follow up on a story we told you about yesterday voters in North Dakota rejecting the measure that would eliminate their state property tax.
But just how close were the results and could your State's soon be voting on a similar measure joining me now Scott Hodge president of the Tax Foundation Scott.
Great to see you again is something of a shocker because not only was -- voted down it was thrown out and trashed.
78%.
Saying -- -- really like to play pay property taxes what happen.
Well I don't think they said that they like to pay -- property taxes in fact of the property tax probably -- -- most hated taxes.
By and by all means but what people like -- is the services that property taxes pay for like police and fire right and garbage collection and they were afraid of losing that.
And they were also afraid I think of seen replacement tax at that at the state level.
And we see that sort of bait and switch before in other states where they cut property taxes the local level but raise taxes that the state -- Afraid of losing control.
That's -- I mean you know at the end of the day what everybody already knew about and that -- -- they were getting incredible tax revenues from the -- -- or industry.
So there was a replacement revenue there.
I'm wondering if this tells you that.
Of the mere area -- Tax reform measures in states across the country that are going to be on the ballot this year the many -- -- might fail maybe even this movement that we thought was about reducing taxes.
Isn't that at all.
I don't see that we've seen now Ohio for instance just repeal -- estate tax Indiana repeal their inheritance tax we just saw the governor about Kansas sign a big tax cut bill there so there is a big tax cut movement across in the country.
But supporters have to sell these right they can't -- look like they're taking something away.
They have to sell a real and a vision of how government is gonna continue with a lower rates but smaller -- Well that makes a good point because this thing was criticizes a plan without a plan right.
Ron was a real grassroots movement it did they just not make their case well enough could they have sold this in a better way that might have gotten support.
That's the exact lesson that I'm taking from it and I think that all tax.
Reform supporters.
Need to take from this is well you have to sell -- real plan here you just can't just.
Take 800 million dollars at a local budgets and expect government to continue and especially for the things that people expect from their government to do like police and fire garbage collection.
And interestingly this state collected 44% more in taxes last year.
Than they did the previous years to their tax collections are going through the -- a lot of Smart voters they're saying hey.
If we get all this extra money they're gonna find a way to spend -- more programs that I may or may not want not just cops and firefighters.
Oh exactly right but I'd rather see this state eliminate things like their income tax their personal income tax corporate income tax.
Don't forget that South Dakota.
-- does not have either -- personal or corporate income tax so the state wants to be competitive.
It should replace.
This so oil tax revenues by eliminating.
Those corporate or personal income taxes -- be far more competitive as a result.
Well we've got a lot of these initiatives on the back ballot in states across the states got things for coming on tonight great to have you here as always a pleasure.
You bet thank you --
