North Dakota to exempt military income from taxes | Kiowa County Press

Merrilee Gasser

(The Heart Sq.) – North Dakota Governor Doug Burgum signed a invoice into legislation this week that exempts army members who dwell in North Dakota from paying state earnings tax.

The passage of Senate Invoice 2293 means lively obligation, guard and reserve members who serve in North Dakota will probably be exempt from earnings taxes on their army pay.

There are practically 7,300 active-duty service members within the state. Greater than 11,000 will see tax reduction by means of the measure when nationwide guard and reserve members are taken into consideration.

“Slicing earnings taxes for all of these will assist help their spouses and their youngsters,” the governor mentioned.

The invoice is estimated to cut back service members’ taxes by $4 million from 2023-2025, in response to the governor’s workplace.

The transfer means North Dakota joins twenty different states that don’t tax army earnings, Burgum mentioned. Different states embody Arizona, Arkansas, Colorado, Illinois, Iowa, Kentucky, Michigan, Minnesota, Missouri, Montana, New Mexico, and Oklahoma.

“We’re in competitors with each different state for workforce,” mentioned Burgum. “And that workforce competitors does not matter whether or not it is enterprise, schooling, healthcare, or army personnel, we’re in competitors, and we have made a concerted effort lately to make North Dakota essentially the most army pleasant state within the nation. Not solely as a result of it is good for workforce and our financial system, however as a result of it’s the proper factor to do for these women and men who defend our most cherished freedoms and defend our nation serving at dwelling and overseas.”

Burgum signed the invoice surrounded by members of the North Dakota Nationwide Guard and state guard members within the Black Hawk helicopter hanger at North Dakota Military Nationwide Guard’s Aviation Help Facility in Bismarck.

The invoice takes impact for taxable years starting after December 2022.

At the very least 15 different states supply partial tax exemptions for army earnings and 9 totally exempt army earnings when residing outdoors the state.

Solely six states totally tax army earnings: Delaware, Georgia, Nebraska, Rhode Island, Utah, and the District of Columbia.

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming, and New Hampshire do not tax earnings.

Burgum made tax reduction a theme in his State of the State handle earlier this yr the place he referred to as for property tax reduction and creating a greater enterprise tax surroundings and simplifying the tax code.