Tuesday night (Nov. 18) on 6:30 Point of View | Where is the Money? Bakken.com CEO Mike Marcil joining host Chris Berg to discuss the possibility of making North Dakota the first zero-tax state in the nation.
During the previous segment, Berg and Marcil talked about North Dakota’s newfound wealth– a total of 20 billion dollars spread amongst numerous state accounts. You can find a link to that show right here – http://bakken.com/bakken-com-ceo-presses-north-dakota-governor-on-630pov/.
In Tuesday’s show, Berg asked the Governor if he thought it possible that North Dakota could become the first no-tax state in the nation and inquired about his long-term goals for the state’s money. Governor Dalrymple responded, in part, that he believes we should continue to give the people of North Dakota more tax relief, though he would not commit to how much specifically. Dalrymple also suggested the state government might be willing to reevaluate the funding formulas of some trust and savings accounts in order to free up more money for the people of North Dakota.
Below are some excerpts of the conversation:
Mike Marcil: “The North Dakota border is forever. There is a fairness doctrine in North Dakota. Most North Dakotans […] believe– and me included … we have to contribute something.”
Chris Berg: “Wait a second. Let’s be honest. Look at the renaissance zone: so many tax-exempt pieces of property. If that person doesn’t pay taxes, guess who is picking up the tab? Me and you.”
Marcil: “It’s a fair argument. The property taxes issue is a local issue; the taxes are done at a local level. The state, because of inflated property values, have gotten into that game. In 2002 when I started investing in western North Dakota … Do you realize this? Every year when I got my property tax bill, it went down.”
Berg: “You are one of a few.”
Marcil: “No. 2002, 2003, 2004 … There was a period in North Dakota where we had declining values, and every year I would have less in the property taxes. But here was the problem: my property values were going down in value. One of the things we have to understand, what we’ve seen in the last three to four years in western North Dakota, specifically the inflation and property values, is over. It’s over. Here’s my prediction, and it’s going to shock everybody: we’ll see a massive slowdown. We overbuilt in western North Dakota. You’ll see in the next couple years a saturation of housing […] in the investment side [and] a stabilization in values. Now, what does that mean for the average taxpayer? When they get their bill this year, the bill will be even or less.”