Burgum signs bill benefiting active duty, Guard and Reserve by exempting military pay from income tax

BISMARCK, N.D. – As a part of ongoing efforts to make North Dakota essentially the most military-friendly state within the nation, Gov. Doug Burgum as we speak signed a invoice that exempts army pay from state earnings tax for energetic responsibility, Nationwide Guard and Reserve members, constructing on laws signed in 2019 that exempts army retirement pay.

The adjutant normal of the North Dakota Nationwide Guard, Maj. Gen. Al Dohrmann, and the prime sponsor of Senate Invoice 2293, state Sen. Scott Meyer of Grand Forks, have been amongst those that joined Burgum for a invoice signing ceremony within the Black Hawk helicopter hangar on the North Dakota Military Nationwide Guard’s Aviation Assist Facility in south Bismarck.

Statewide, SB 2293 is estimated to scale back North Dakota service members’ earnings taxes by $4 million within the 2023-25 biennium. Navy pay encompasses all federal pay for coaching, schooling, mobilization and bonuses in addition to state pay when referred to as to assist an emergency on state energetic responsibility.

“By becoming a member of the roughly 20 states that don’t tax army earnings, North Dakota is recognizing the sacrifice of army service and constructing on the momentum of our ongoing efforts to make ours essentially the most military-friendly state within the nation,” Burgum mentioned. “We’re grateful to the legislators, Nationwide Guard officers, army supporters and everybody else who advocated for this essential tax aid.”

Presently, 12 states totally exempt army earnings from state earnings tax, together with Minnesota, and 14 states partially exempt it, in line with testimony on the invoice. 9 states haven’t any earnings tax, together with South Dakota. In consequence, army service members usually select a state with exemptions for army pay or no earnings tax as their official state of residence.

“This coverage will help our energetic responsibility members and their households once they resolve the place to set their state residency, it’ll help our Nationwide Guard with recruiting efforts, and it’ll help workforce growth by veterans filling job openings as soon as they separate from the army,” Meyer mentioned. “The passage of SB 2293 continues to indicate that North Dakota is a pacesetter in offering high quality of life alternatives for our service members. They’ve earned it.”

North Dakota at the moment has about 5,500 Guard and Reserve members and almost 7,300 energetic responsibility service members primarily on the Grand Forks Air Drive Base and Minot Air Drive Base, in line with the Division of Protection.

“This historic invoice clearly demonstrates the nice regard for our army by our state elected leaders,” Dohrmann mentioned. “I’m appreciative of the Governor and our legislators who supported this and different payments that instantly profit Nationwide Guard members and their households.”

The invoice handed the Home 89-3 and the Senate 40-4. Invoice co-sponsors have been Sen. Jordan Kannianen and Reps. Jason Dockter, Craig Headland, Mike Nathe and Steve Vetter.