I think you guys might be misunderstanding the vote. As explained before, the measure was not a decrease in taxes, as it requires the state to raise other taxes to make up the difference. The measure was a change in the structure of taxes in ND.
What was that change? The change was to move the tax burden away from property owners (eliminate property tax), and increase other taxes, most likely sales and income tax. Think about that. Who owns property? Well, companies, investors, people that can afford to buy property, and older citizens. Who pays income tax? Obviously, people who work. Who pays sales tax? Well, people who consume.
Think for a minute about a timeline of your life. When you're younger and bustin' your hump, you own no property, just trying to buy a car and get an apartment. Then you reach middle age and get married, have a couple of rug rats. You are making more money, and buying a whole lot more stuff. As you get older, you buy less, make less, and enjoy your property.
So, the tax burden would shift more to younger families, and away from retirees and companies. As a guy who is 59 and 1/3 years old, I would love to get rid of property taxes, as my consumption is trailing off (generally, I have what I need), my income is plateaued, and my major investment is a 24 unit motel with a $12,000 property tax bill. But, if I was 35ish years old with a working wife and two kids needing everything I would not vote to increase my income and sales tax.
Another critical issue with tax structure. Remember, property taxes are set by the local municipality, county, and school district...all local government. Local government is very close to you. Their ability to tax is what makes one school district better than another, one community better than another. But these decisions are made at a local level, and unless you live in a big city they are most likely made by people you know that are your neighbors (like me, a Village Trustee). Taking away property taxes takes away the funding ability of the local government (whom you know) and transfers the funding decisions to the state legislature (whom you don't know) that has no idea what your local needs are. If you had to pay the same amount of taxes, would you rather have it controlled locally by people who live in your town, or by bureaucrats in Bismark?
I'm guessing you would vote for local control, and that's what this vote did. Interestingly, when Alaska started having major surpluses it abolished the income tax, thus defunding the state gov't, not the local ones.
All in all an interesting debate. I bet if the measure was to get rid of income tax (defund the state gov't) it would have passed with flying colors.