UPDATE: Burgum signs law providing $ 211 million in tax relief for approximately 500,000 North Dakotas

0

BISMARCK, ND – Governor Doug Burgum today signed a law providing estimated income tax relief of $ 211 million over the next two years by eliminating the state income tax bill for approximately 300,000 Dakota taxpayers North and by providing partial relief to 200,000 other taxpayers. The tax relief responds to a major element of the Governor’s Fast Track ND plan for the Special Session of the Legislature, which adjourned today.

“This bill is a victory for half a million North Dakota workers, providing them with real and significant tax relief for this year and the next,” Burgum said. “We are deeply grateful to Representative Heinert and to the entire Legislature for overwhelmingly endorsing this tax break and for improving our original proposal. Our common approach to conservative fiscal management has allowed us to put money back in the pockets of the North Dakotas who continued to work during the pandemic and supported our economic recovery, benefiting all of us. “

House Bill 1515 was introduced by Representative Pat Heinert of Bismarck and originally reflected the Governor Accelerate ND income tax proposal. The amended version approved by lawmakers provides an income tax credit of up to $ 350 per year for resident taxpayers, or $ 700 per year for people filing a joint declaration of marriage, beginning in years of tax 2021 and 2022.

“I am very happy with the result,” said Heinert. “As I said in my speech, we need to share the wealth with the North Dakotas, and I was delighted to be the primary sponsor of this bill.”

The approved bill will eliminate state income tax on approximately 210,000 returns, which represents 300,000 taxpayers when accounting for two adults who file a joint married return. Another 140,000 returns will receive a partial reduction, which is 200,000 taxpayers when accounting for married joint returns, according to state tax commissioner Ryan Rauschenberger, who worked with the governor and Heinert on the tax relief proposals .

“It is always an excellent policy to give additional tax breaks where possible,” said Rauschenberger. “Taxpayers will begin to claim the tax credit when the reporting season begins, in just a few months. ”

The tax relief will be funded from the state’s surplus general fund balance of $ 412 million for the 2019-21 biennium. The legislature budgeted for a closing fund balance of $ 710 million, but the actual closing fund balance came in at $ 1.12 billion, thanks to careful budgeting, higher than expected revenues from the Legacy fund and the strategic use of federal coronavirus relief funds to pay for state spending during the last biennium.

The bill passed House 92-0 Thursday and Senate 40-7 today.

Burgum also signed Senate Bill 2351, which exempts Social Security income from state income tax, becoming the 38e state to do so. The bill, introduced by Sen. David Hogue de Minot, will provide approximately $ 14.6 million in savings per biennium to approximately 20,000 North Dakotans.

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


Source link

Share.

About Author

Comments are closed.