North Dakota 2023-2024 Regular Session

North Dakota Senate Bill SB2066

Introduced
1/3/23  
Refer
1/3/23  
Refer
1/10/23  
Report Pass
2/7/23  
Refer
2/7/23  
Report Pass
2/14/23  
Engrossed
2/16/23  
Refer
3/3/23  
Refer
3/23/23  

Caption

The imposition of a flat income tax rate for individuals, estates, and trusts; to provide an effective date; and to provide an expiration date.

Impact

If enacted, SB2066 will amend existing state tax codes related to property and income taxes. Specifically, it will establish a mechanism for homeowners to receive property tax credits, which could help alleviate financial burdens for residents. Additionally, the adjustment of income tax rates tied to general fund performance introduces a dynamic approach to tax regulation, potentially impacting taxpayer contributions based on state revenue realities. This legislation aims to support taxpayers by directly affecting how property taxes are levied and how income tax is calculated based on revenue assessments.

Summary

Senate Bill 2066 introduces provisions for a property tax credit applicable to primary residences in North Dakota, as well as amendments to individual income tax regulations, including the imposition of a flat income tax rate for individuals, estates, and trusts. The bill sets forth a $500 tax credit that individual homeowners can claim against their property taxes, which is particularly beneficial for those living in their primary residences. Furthermore, SB2066 proposes that changes to tax rates will be influenced by actual general fund revenues exceeding estimates in specific timeframes, thereby allowing potential rate reductions for taxpayers.

Sentiment

Discussions surrounding SB2066 reveal a predominantly positive sentiment among supporters who view the proposed tax credit and flat rate as effective measures to simplify taxation for residents. Advocates argue that this will help address fiscal challenges faced by average homeowners while promoting fairness in the tax system. However, there are concerns regarding the sustainability of the funding mechanisms, and some opponents express skepticism about whether these tax benefits will adequately serve lower-income residents or if they may inadvertently favor wealthier individuals, thus generating a debate on equality and equity in tax policy.

Contention

Notable points of contention focus on the implications of transitioning to a flat income tax rate while also providing property tax credits. Opponents may fear that a flat tax system could disproportionately affect lower-income individuals, leading to a regressive taxation structure. Furthermore, the bill's reliance on general fund revenue as a driver for tax adjustments raises questions about long-term fiscal sustainability, especially in economic downturns. As it stands, SB2066 seeks to balance immediate taxpayer relief with broader, potentially contentious discussions about fairness and financial health in the state's tax approach.

Companion Bills

No companion bills found.

Previously Filed As

ND HB1158

The homestead tax credit and income tax rates for individuals, estates, and trusts; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an effective date; and to provide an expiration date.

ND HB1575

Legacy fund definitions, the legacy earnings fund, and the primary residence credit; to provide an appropriation; to provide for a transfer; to provide an effective date; and to provide an expiration date.

ND SB2298

The homestead credit certification and disabled veterans' credit; to provide for retroactive application; to provide an effective date; and to provide an expiration date.

ND HB1279

The exemption from the coal conversion facilities tax and the imposition of a lignite research tax; to provide an effective date; to provide a contingent effective date; and to provide an expiration date.

ND HB1380

Determination of state school aid; to provide an appropriation; and to provide an effective date.

ND HB1176

Legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.

ND HB1586

The primary residence credit, setoff of income tax refunds for payment of delinquent real property and special assessment taxes, and eliminating foreclosure of tax liens for primary residential property; to provide an effective date; to provide an expiration date; and to declare an emergency.

ND SB2201

The primary residence credit; to provide for application; to provide a retroactive effective date; to provide an expiration date; and to declare an emergency.

ND HB1168

Legacy fund definitions and the legacy earnings fund; to provide a statement of legislative intent; to provide for a legislative management study, to provide an appropriation; to provide an effective date; to provide an expiration date; and to declare an emergency.

ND HB1504

An income tax credit for qualified brewers for barley purchases; to provide an effective date; and to provide an expiration date.

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