Governor Jack Dalrymple announced that he will propose in his upcoming budget recommendations a robust tax relief package for the people of North Dakota. It includes a reduction in property taxes, a reduction in individual and corporate income taxes, and an enhancement of the Homestead Tax Credit in his upcoming budget recommendations, cutting taxes by nearly $545 million in the 2013-15 biennium.
"This is a time of great economic prosperity for North Dakota, and with that prosperity comes the opportunity to continue relieving the tax burden on our residents," said Gov. Dalrymple. "It is very exciting to know that we can invest in our communities, in our schools, and in our roads, and still offer comprehensive tax relief. We have worked hard for many years to be able to provide meaningful tax relief, and it will continue to be a primary focus."
Dalrymple's plan includes:
A 50 percent reduction in the average school district tax levy, significantly cutting property taxes. This means a homeowner in an average school district whose home value is $180,000 will now see a total reduction in property taxes of $1,070 per year.
An additional $20 million savings in property taxes per biennium through the Homestead Tax Credit program for qualifying taxpayers. The Governor's proposal expands eligibility by eliminating the penalty on people who have saved assets for retirement and by increasing the income threshold for a household to $50,000 per year. Tax relief will also be increased by disregarding social security benefits in the calculation of the income test.
A $100 million reduction in individual income taxes in the upcoming biennium. This proposal, combined with tax reductions since 2009, reduces income taxes by nearly 40 percent.
A $25 million reduction in corporate income taxes.
On behalf of the Greater North Dakota State Chamber, Shannon McQuade-Ely of McQuades Distributing in Bismarck said, "The Greater North Dakota State Chamber applauds Governor Dalrymple on his plan to cut property, personal income and business taxes. We look forward to working with the Governor and Legislature in the next session to craft tax relief legislation that will benefit all North Dakotans."
Gib Bromenschenkel, Fargo resident and former City Commissioner, said, "The effects Governor Dalrymple's tax relief proposals will be especially helpful for North Dakota senior citizens."
Altogether, this plan for tax reductions will save North Dakota taxpayers an additional $545 million over the coming biennium. Combined with previous tax reductions in 2009 and 2011, North Dakota taxpayers will pay $2.25 billion less in taxes through the coming biennium than they would have paid without the changes made during the Dalrymple years.