Tax Relief

UPDATED: Burgum indicators $ 211 million earnings tax relief invoice for roughly 500,000 North Dakotans

BISMARCK, ND – Governor Doug Burgum today signed a bill that provides an estimated $ 211 million in income tax relief over the next two years by removing state income tax bills for approximately 300,000 North Dakota taxpayers and partially relieving an additional 200,000 taxpayers. The tax break fulfills an important part of the governor’s Accelerate ND plan for the legislative special session suspended today.

“This bill is a victory for half a million hard-working North Dakotans that will give them real, meaningful tax breaks this year and next,” said Burgum. “We are deeply grateful to Rep. Heinert and the entire legislature that they approved this tax break with an overwhelming majority and that they improved our original proposal. Our shared approach to conservative housekeeping has allowed us to put money back in the pockets of the North Dakotans, who have continued through the pandemic and supported our economic recovery from which we are all benefiting. “

House Bill 1515 was introduced by Rep. Pat Heinert von Bismarck and originally mirrored that of the governor Speed ​​up ND Income tax proposal. The legislature-approved amended version provides for an income tax credit of up to $ 350 per year for resident natural income taxpayers or $ 700 per year for individuals filing a joint declaration of marriage, effective for tax years 2021 and 2022.

“I am very satisfied with the result,” said Heinert. “As I said in my speech, we have to share the wealth with North Dakotans, and I was delighted to be the main sponsor of this law.”

The approved bill will eliminate state income tax liability on approximately 210,000 tax returns, which equates to 300,000 taxpayers, given the two adults filing a joint marriage declaration. A further 140,000 tax returns will be partially reduced, which corresponds to 200,000 taxpayers when accounting for married joint tax returns, according to state tax commissioner Ryan Rauschenberger, who worked with both the governor and Heinert on the proposals for tax breaks.

“It is always a good policy to grant additional tax breaks if possible,” said Rauschenberger. “Taxpayers will take advantage of the tax credit when the filing season starts in just a few months.”

The tax break will be funded from the $ 412 million surplus of general government fund balances for the 2019-21 biennium. The legislature had a final fund balance of 710 million last biennium.

The bill was passed 92-0 in the House of Representatives on Thursday and 40-7 in the Senate today.

Burgum also signed Senate Law 2351, which exempts social security income from state income tax, making it the 38th state to do so. The bill, proposed by Senator David Hogue of Minot, will save approximately 20,000 North Dakotans an estimated $ 14.6 million over a biennium.

The governor also signed eight additional bills: HB 1507, HB 1508, HB 1509, HB 1512, SB 2346, SB 2347, SB 2348, and SB 2350.

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