Legislature: No to eliminating state income tax, yes to Social Security tax exemption

1021 ND Legislature_1529547143213.png.jpg

North Dakota’s individual and corporate income tax will remain in effect following a North Dakota Senate vote this afternoon.

House Bill 1530 would have eliminated the state’s income tax, replacing it annually with equivalent revenues from the Legacy Fund.

The bill passed the House January 21, on a vote of 91-1.

However, the Senate today defeated the legislation, 19-26.

Meanwhile, the Senate approved a bill exempting Social Security benefits from state taxes.

Lawmakers backed House Bill 1174 on a 27-18 vote, despite a “Do Not Pass” recommendation from the Senate Finance and Taxation committee.

The House approved the legislation on February 8 on a 63-24 vote.

That bill now goes to the governor for his signature.

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