DICKINSON — North Dakota Gov. Doug Burgum took the opportunity during his final State of the State address to call on legislators to get rid of the state’s income tax and for the state to do better in telling its story to the nation.
“It is time for us to say goodbye to the state income tax once and for all,” Burgum said Tuesday, Jan. 23, in his speech at Dickinson State University.
The roughly two-hour speech mostly touched on a long list of Burgum’s accomplishments as governor. The Republican also sang praises for North Dakota’s progress during his tenure.
Toward the end of the address, the two-term governor addressed calls for property tax relief. A group has been working to put a measure on the ballot this year to abolish property taxes.
Burgum said the state Legislature has been generous in providing property tax relief, noting it allocated $5.5 billion during the 2023 regular session for just that. He said it's time for the state to stop blindly picking up the tab for local political subdivisions and instead look at true reform.
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“The Legislature cannot fix your local problem with a blanket approach because property taxes are set at the local level and vary widely across North Dakota,” Burgum said. "We can't do a one-size-fits-all (solution) because of the wild disparities."
Property tax relief should be targeted, Burgum said. The move only shifts the bill from one group of taxpayers to another, the governor said. The people who get the burden don't get a say in the decision, he said, calling the shifts "redistribution schemes."
"That's not North Dakota," he said. "That makes no sense."
The state should focus on what it can control, he said. Legislators approved $358 million in income tax relief this session.
Burgum said the state has made strides to collect no income tax from many residents. There are nine states with no income tax at all, he noted.
“I challenge the 69th Legislative Assembly to take that final step," he said.
Burgum pushed to expand who gets income tax relief when the Legislature returned in October to the state Capitol for a special session. The Senate killed that proposal, which would have cost an additional $46 million a year.
Burgum said lawmakers who voted down his income tax plan squandered the opportunity to provide tax relief. The state had at the time a $288 million surplus.
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This was Burgum’s last State of the State address. He announced Monday he would not run for a third term as governor.
Before Burgum's tenure, the speech coincided with the start of a legislative session during odd-numbered years. Burgum, who was first elected in 2016, changed that tradition, making the biennial address an annual event.
He has used the speech to highlight progress in North Dakota and proposals for the Legislature.
He said the state is underestimated. The state has more than $1.3 billion in reserves, which is seven times more than when he took office, he said.
"We have so much cash in so many places," he said.
The state has to do a better job of promoting the state, Burgum said. Traveling around the country as he ran for president, Burgum said many people told him they never heard of North Dakota or only knew it had cold weather.
"We have the best of America right here," he said. "We have to tell our story."
The state cuts through regulation and prioritizes innovation, he said. North Dakota feeds the world with its agricultural products, is a top energy producer and ranks No. 1 for business friendliness, among other things, he boasted.
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"We are so good at so many things, and we have never been stronger," he said.
The work to improve the state was not done, he said. One of the biggest challenges was attracting more residents to meet the needs of the workforce. The state has made headway in overcoming child care barriers.
“Now the next thing we have to work on … is housing,” he said.
The state estimated it will need an additional 9,000 housing units by 2025, Burgum said.
North Dakotans solve a lot of problems without government, Burgum said. While in office for the next several months, he plans to keep working to empower residents.
"We've got to do more in believing in ourselves," he said as he became emotional. "If we believe in ourselves and we learn to tell our story, we will no longer be that blank spot on the map."
In a response to Burgum's speech, the North Dakota Democratic Party said Burgum should have used his address to bring people together.
"Instead, he recycled the same stale talking points that didn’t work for him on the presidential campaign trail," House Minority Leader Zac Ista, R-Grand Forks, said in a statement.
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Burgum suspended his presidential run in December.
North Dakotans want more than tax cuts, Senate Minority Leader Kathy Hogan, D-Fargo, said. They want solutions for the workforce, child care, housing and mental health problems, she said in the statement with Ista.
"Democrats have been beating the drum for more investments in each of these areas for years," she said. "But the outgoing administration’s focus on the things that will really improve the lives of everyday North Dakotans was too little and too late."
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