Notes From The Capitol

You are here: Home

Area News

State Legislator's Comments

State Legislators Comments

Written by Paul Anderson - State House Representative 13A

Monday, 23 January 2012 10:27

Monday, Jan. 12, 2012

Action in the areas of government reform and job creation are at the top of the list for many here in St. Paul, as we start the new legislative session. It seems both the Governor and legislative leaders agree on that premise so, at least starting off, there seems to be more of a spirit of compromise. I find that encouraging.

There will be work done in the area of tax reform, specifically property taxes. The major change put into effect last year removing the Homestead Credit and replacing it with an exclusion will probably stay in place. We will work in the area of commercial property taxes and put together a plan to gradually reduce and eliminate the tax, which is collected on all commercial/industrial property in the state and sent directly to St. Paul.

There is also discussion about streamlining our entire property tax system and its multiple classifications of property. We have probably the most complicated system in the nation with over 50 different classifications. It's hard for local officials to explain the system, and even harder for residents to understand it.

Another concern of mine is increasing taxes on agricultural land. We all know what's happening to the price of farm land, with its rapid increase in value being one component of higher property taxes. Another is the decreasing value for most residential property, which causes a shift in taxes to other kinds of property. This decrease is being caused by natural market conditions, in addition to the Exclusion, which lowered the taxable market value of most homesteaded property. The third leg of this property tax "stool" is the levy assessed by local units of government. As levies are increased, more tax revenue will be collected.

Came across an article put out by the North Dakota Sheriffs' Association pertaining to the impact of oil drilling in that state. According to their figures, there are 84 companies involved in the oil industry in the western part of the state. At last count, there were 258 wells in progress, with many more scheduled. Traffic is extremely heavy, with a recent 24-hour count on Highway 85 south of Williston coming up with 29,000 vehicles, 60 percent of which were semi's. Traffic to get on that particular highway is typically backed up for over half-a-mile.

Again, according to the Sheriffs' Association, rent in Williston currently is $2,000 for a one-bedroom and up to $3,400 for a three-bedroom. The local Motel 6 rents rooms, if they are available, for about $130 per night. The county allows three campers per farmstead, and rates charged by farmers range up to $800 per month. On January 1, the Wal-Mart in Williston had 148 campers overnight in its parking lot.

On the down side, some local residents are taking retirement and moving out of the area, Rents have gotten so high that many on fixed incomes can no longer afford them. And, looking into the future, the thought from the oil companies is that they will continue their present rate of growth for the next five years and then level off for another ten years before starting to drop off.

Rep. Paul Anderson

Local Sponsors: