(KXNET) — On Friday, senate lawmakers took another look at a nearly $300 million flat tax proposal at the capitol.
House Bill 1158 changes the tax bracket, so people making less than $44,725 a year wouldn’t pay income tax. It also changes the rest of the income tax rate from 1.1% to 2.2%. It also gives property tax relief by spending $80 million toward the Homestead Tax Credit.
“Anyone above that bottom bracket of taxable income would receive tax relief in that first bracket of $492,” Sen. Jordan Kannianen said.
“So, while it’s incredible that North Dakota citizens for the most part will see a tax reduction, they will be seeing a subsequent increase in their energy costs because of this if those taxes are shifted and increased on them,” Carlee McLeod with Utility Shareholders of North Dakota said.
On Monday, House lawmakers will also discuss Senate Bill 2066, which lowers property taxes in the state from 60 mills to 40 mills in the foundation aid formula.
If the bill passes, the state would instead pay over $203 million to school districts.