BISMARCK, ND – Gov. Doug Burgum, State Tax Commissioner Brian Kroshus, Chairman of the House Tax Committee Rep. Craig Headland and his fellow lawmakers today announced a tax relief plan that would replace the state’s flat income tax rate with a lower flat rate, saving North Dakota taxpayers about $250 million. dollars a year and completely eliminate the individual tax burden for 60 percent of the state’s taxpayers.
Burgum, Kroshus and Headland announced the Help for All plan during a news conference at the Capitol with Lt. Gov. Brent Sanford and members of the House and Senate Taxation Committees, including Sen. Scott Meyer, Sen. Jordan Kannianen, Rep. Glenn Bosch and Rep. Jason Dockter.
Based on the current 2022 tax year, the plan would effectively eliminate state income taxes for more than 388,000 North Dakota taxpayers whose income is $54,725 or less. singles or $95,600 or less for couples living together.
Those with higher income rates will pay 1.5% tax, compared to the current tax rate that ranges from 2.04% to 2.9%, which translates into a 26% to 48% reduction in state income tax.
Burgum noted that inflation is at its highest in more than 40 years, competition for workers is fiercer than ever, and the balance sheet has never been stronger. state.
“Now is the right time to provide meaningful and lasting tax relief to make our state a more attractive place to work and a better place to live,” Burgum said. “Under this proposal, almost 60% of taxpayers will not have to pay state income tax, and those who do will see a loss in their income tax. those in about half, which allows North Dakota to keep more of its taxes. – Received money to cover expenses and use in his family and community. “
“This is the largest tax relief package in state history and will position North Dakota as the lowest-tax state in the nation, while maintaining a state tax collection system to fund priorities,” said Kroshus. “All earners will see measurable relief, increasing disposable income that can quickly flow into the North Dakota economy. It’s also the most effective tax relief option available at the state level, reaching the majority of people and provides the highest average tax cut for new families, low-income earners and those entering the workforce, including graduates from university.”
The legislator will now work with the Office of the Governor, the Office of the Tax Commissioner and the Council of Laws to prepare the introduction plan of the 68first The National Assembly, which meets regularly on January 3.
“Economic competitiveness comes to the fore when dealing with challenges related to hiring and continuing economic growth,” Headland said. “This income tax reform is an important step in the right direction as North Dakota works to address the challenges facing oil production, agriculture and technology as we diversify our economy. “
“This tax policy will keep money in the pockets of our citizens and also include a state tax break for the state’s lowest income earners,” Meyer said. “This will allow more financial freedom for our constituents to use their resources as they see fit.”
The plan announced today expands on the tax relief package – proposed in the Burgum-Sanford Accelerate ND plan – that was approved by lawmakers and signed into law by Burgum last November. This package would provide $211 million in relief to approximately 500,000 North Dakotans in the 2021 and 2022 tax years by providing individual income tax credits up to of $350 per year for resident taxpayers, or up to $700 per year for individuals filing a. married joint return. The Senate passed and Burgum also signed legislation to remove Social Security income from state taxes, saving North Dakotans about $14.6 million every two years. About 20,000.
North Dakota changed its personal income tax rate in 2015, reducing the rate by about 10%, from 1.22% to 3.22% from 1.1% to 2.9%.