BISMARCK, N.D. (KFGO/PRAIRIE PUBLIC) – The North Dakota House has passed three bills dealing with state income tax reductions.
House Bill 1158 eliminates the tax for single filers making $44,750 or less, and on married filers making $74,750 or less. It sets a flat tax rate of 1.5 percent for higher-income earners.
House Bill 1118 gives tax credits of $800 for single filers and $1600 per married filer, and sets a 1.99 percent flat tax rate.
House Bill 1425 would incrementally reduce income tax rates, if state revenues are higher than expected.
Emerado Republican Rep. Jared Hagert spoke in favor of HB 1158.
“This will make our state more competitive in attracting workers and businesses, and will move North Dakota closer to joining the eight states with no individual income tax, including our neighbor to the south,” Hagert said. “The bottom line is, House Bill 1158 puts more dollars back into our vibrant economy.”
Grand Forks Democratic Rep. Zac Ista argued against HB 1158, saying its $566 million price tag is too high – and too risky – because it means more dependence on oil taxes, which Ista said are volatile.
“It won’t be two years from now, or four years from now, but at some point the tax policy in this bill is going to crash head-long into reality and we’re going to be faced with a need to make sharp and sudden budget cuts, not just an FTE here or there, but real cuts that our constituents will feel,” Ista said.
House Finance and Tax Committee chairman, Montpelier Republican Rep. Craig Headland, said the three bills will all be part of negotiating with the Senate on what income tax relief will entail.
