North Dakota to exempt military pay from income taxes

BISMARCK, N.D. — Republican Gov. Doug Burgum signed a invoice Monday that exempts navy pay from state earnings taxes for lively obligation, Nationwide Guard and Reserve members.

Underneath this invoice, North Dakota service members’ earnings taxes are estimated to drop by $4 million between 2023 and 2025, the governor’s workplace stated. Navy pay contains federal prices for coaching, training, mobilization and bonuses in addition to state pay when known as to help an emergency on state lively obligation.

Burgum’s workplace stated navy service members typically dwell in states with exemptions for navy pay or no earnings tax as their official state of residence.

He stated by taking this motion, “North Dakota is recognizing the sacrifice of navy service and constructing on the momentum of our ongoing efforts to make ours essentially the most military-friendly state within the nation,” Burgum stated.

State Sen. Scott Meyer of Grand Forks, who sponsored the invoice, stated in a press release that the invoice will assist lively obligation members and their households determine the place to set their state residency. He additionally stated it’ll help with Nationwide Guard recruitment.

Throughout testimony on the laws, proponents stated that 12 states have already exempted navy pay from state earnings taxes, together with Minnesota, and 14 states partially exempt it. 9 states haven’t any earnings tax, together with South Dakota.

North Dakota at present has about 5,500 Nationwide Guard and Reserve members and practically 7,300 lively obligation service members, primarily on the Grand Forks Air Power Base and Minot Air Power Base, based on the Division of Protection.