The Senate Finance and Tax Committee voted 4-2 to recommend a do-not-pass on Senate Concurrent Resolution 40-23, a proposal to put before voters the question of repealing the constitutionally authorized 1-mill property levy that currently supports the University of North Dakota State Medical Center.

Senator Patton, who spoke at length about the levy’s history and fiscal effect, said the 1-mill has grown in revenue as statewide taxable valuation rose. “What that is actually, and this is just background information, is an indication of what's happened to the taxable valuation in our state,” Patton said, and he described uncertainty about how the legislature would replace that revenue if voters eliminated the mill.

Committee discussion cited published year-to-year amounts and a fiscal-note projection. Charles Dende, general counsel for the Office of the State Tax Commissioner, told the committee that Section 6 of the fiscal note shows no impact for the 2025-27 biennium because of timing, but estimates an impact of $14,738,688 for the 2027-29 biennium (about $7.3 million per year). Separately, committee staff cited a published annual figure of $6,136,000 for 2023 (roughly $12.2 million on a biennial basis).

Several senators expressed concern about replacement funding and transparency. Senator Powers urged clearer labeling on tax statements so taxpayers know where the mill is going, saying many people simply see “State of North Dakota — 1 mill” and do not realize it supports the UND medical school. Senators also debated whether the legislature would be obligated to replace the revenue if voters chose repeal and discussed constitutional constraints on refunding or replacing the levy.

The committee first considered a motion to put the resolution on the ballot (moved by Senator Wallen); the clerk’s initial roll call produced a 3-3 tie (Weber, Romo and Wallen in favor; Marsali, Patton and Powers opposed), so that motion failed to advance. Senator Patton then moved a do-not-pass recommendation; the motion carried on a roll call, 4-2 (Romo, Marsali, Patton and Powers voted yes; Chairman Weber and Senator Wallen voted no). The committee recorded the do-not-pass recommendation and discussed finding a committee member to carry the resolution forward; no carrier volunteered during the hearing.

The committee’s recommendation is advisory to the full chamber; the resolution’s fiscal note and questions about replacement funding will likely be factors if the matter resurfaces. The committee closed debate and moved on to other agenda items.