Burgum touted the proposed flat tax rate of 1.5%, which he called “permanent, meaningful relief,” as the lowest in the nation that would enhance the state’s business competitiveness and attract workers.
The proposal calls for eliminating the lowest state income tax bracket for individuals, which officials said would help working-class taxpayers. Those who continue to pay the state income tax would see reductions ranging from 26% to 48%.
“Every North Dakota taxpayer will benefit from this,” Burgum said.
Passage of the income tax relief package would mean the state could not hoard as much cash and would place future restraints on the growth of state government, he said.
“It doesn’t make sense for the state to keep stockpiling more cash,” the governor said. “We need to get it back in the hands of the citizens.”
Over the years, state officials have provided more than $7 billion in property tax relief, some of it permanent, Burgum said, noting property taxes are levied by local governments, not the state.
“No one goes backwards,” Kroshus said. “Everyone benefits.”
Rep. Craig Headland, R-Montpelier, chairman of the House Tax Committee, noted more states have moved to a flat tax but said North Dakota will stand out for having the lowest rate.
“With this bill, we will have the lowest flat tax in the nation,” he said, adding his goal is to bring the rate to zero.
Legislative leaders and other members of the House and Senate taxation committees attended the announcement, apparently reflecting broad support for the flat tax proposal. Republicans have supermajorities in both legislative chambers.
