Senate committee votes not to advance measure to put UND medical‑school mill levy repeal on ballot

The Senate Finance and Tax Committee voted 4–2 on a recommendation of 'do not pass' for Senate Concurrent Resolution 40‑23, a proposal to submit to voters whether to repeal the statewide 1‑mill property tax that funds the University of North Dakota School of Medicine.

The action followed discussion about how much revenue the 1‑mill generates and how eliminating it would affect funding. Charles Dende, general counsel for the Office of State Tax Commissioner, summarized the fiscal-note timing and projected fiscal impact: because a ballot measure would not take effect immediately, the note shows no fiscal impact for the 2025‑27 biennium but estimates an approximate $14,738,688 reduction for the 2027‑29 biennium (about $7.3 million per year) if the levy were eliminated.

Committee members debated whether the levy should be put to a public vote. Senator Patton described the mill as an indicator of rising taxable valuation statewide and noted uncertainty about how the medical school’s revenue stream would be replaced if voters eliminated the levy. “If we put it on the ballot to eliminate it, it actually takes place,” Patton said, and a later legislative decision would be required to replace funding, if any replacement were chosen. Several senators raised the need for clarity on replacement funding and whether any escalator or automatic replacement mechanism would be included.

Senator Powers and others said many taxpayers do not know the 1 mill on their property tax statement is funding the UND medical school and urged greater transparency on tax statements. Supporters of sending the question to voters argued that letting voters decide would be a form of property tax relief; opponents highlighted the potential $14 million biennial funding gap for the medical school and uncertainty about legislative replacement funding.

On the floor roll call for the committee's final motion to recommend 'do not pass,' Vice Chair Romo, Senator Marsali, Senator Patton and Senator Powers voted yes. Chairman Weber and Senator Wallen voted no. The motion was made by Senator Patton and seconded by Senator Marcelet, and the clerk recorded the 4–2 outcome. The committee adopted the 'do not pass' recommendation, and no further committee action on SCR 40‑23 was recorded in the transcript.

The committee also discussed other pending items on its agenda — including a cigarette tax proposal and other property‑tax measures — but took no further action on those items during this portion of the hearing.

The committee recessed after completing the roll call.