Two Counties Seek Override of Property Tax Cap

Divide and Traill counties ask North Dakota voters to exceed the state's 3% annual limit on local property tax increases.

Updated on Nov. 2, 2026 in City Hall

Two Counties Seek Override of Property Tax Cap

Live Poll

Should counties be allowed to raise property taxes above the state's 3% limit?

Voters in Divide and Traill counties will decide whether to override North Dakota's 3% annual cap on local property tax increases, set last year by the Republican-led Legislature. Divide County seeks an additional 2%, while Traill County seeks 6.41%.

Why it matters

Divide County cites a 10% rise in health insurance costs last year, and Traill County cites increases in veterans services, health insurance, cost of living and operating expenses. Without approval, officials say the counties would face spending cuts.

Divide County seeks an additional 2% in property taxes, roughly $37,800 annually for four years, while Traill County seeks 6.41%, about $461,000 each year for four years, both above the state's 3% annual cap. Voters in each county will decide the measures in November 2026.

The players

Divide County

A county in northwestern North Dakota whose commission placed a measure before voters seeking an additional 2% in property taxes.

Traill County

A county in eastern North Dakota bordering Fargo and Grand Forks that placed a 6.41% property tax increase measure before voters.

North Dakota Legislature

The state's Republican-led lawmaking body that set the 3% annual cap on local property tax increases last year.

The details

Divide and Traill counties placed ballot measures before voters to exceed the 3% cap. Officials argue the additional revenue is needed to fund county operations, and Traill County warned that rejection could lead to staff cuts and postponed road projects.

Last year (2025): Legislature set the 3% annual cap on local property tax increases.
2024: Voters rejected an initiative to eliminate assessed-value property taxes.
November 2026: Divide and Traill counties vote on their override measures.
Next four years: Proposed additional increases would apply annually if approved.

Political Context

The 3% cap was set in a bill that also boosted a property tax credit, and roughly two-thirds of North Dakota's 53 counties used reserves in the 2026 budget cycle to cope. About two-thirds of counties also banked unused portions of the cap for future use, and in 2024 voters rejected an initiative to eliminate assessed-value property taxes.

If the measures pass, property owners in Divide and Traill counties would pay higher annual county property taxes for four years. If they fail, county services could face cuts, including potential staff reductions and delayed road projects in Traill County.

The takeaway

Property tax limits leave counties weighing service levels against taxpayer costs, and the November vote will show how voters in two counties balance those tradeoffs.

What happens next

County voters will decide the Divide and Traill override measures at the November 2026 election, and any approved increases would apply annually for four years.