23.1201.02000
Sixty-eighth
Legislative Assembly HOUSE BILL NO. 1549
of North Dakota
Introduced by
Representatives Hagert, Headland, Lefor, Motschenbacher, J. Olson
Senators Hogue, Kannianen, Meyer
1 A BILL for an Act to amend and reenact subsection 1 of section 57-38-30.3 of the North Dakota
2 Century Code, relating to income tax relief; and to provide an effective date.
3 BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
4 SECTION 1. AMENDMENT. Subsection 1 of section 57-38-30.3 of the North Dakota
5 Century Code is amended and reenacted as follows:
6 1. A tax is hereby imposed for each taxable year upon income earned or received in that
7 taxable year by every resident and nonresident individual, estate, and trust. A taxpayer
8 computing the tax under this section is only eligible for those adjustments or credits
9 that are specifically provided for in this section. Provided, that for purposes of this
10 section, any person required to file a state income tax return under this chapter, but
11 who has not computed a federal taxable income figure, shall compute a federal
12 taxable income figure using a pro forma return in order to determine a federal taxable
13 income figure to be used as a starting point in computing state income tax under this
14 section. The tax for individuals is equal to North Dakota taxable income multiplied by
15 the rates in the applicable rate schedule in subdivisions a through d corresponding to
16 an individual's filing status used for federal income tax purposes. For an estate or
17 trust, the schedule in subdivision e must be used for purposes of this subsection.
18 a. Single, other than head of household or surviving spouse.
19 If North Dakota taxable income is:
20 Over Not over The tax is equal to Of amount over
21 $0 $44,725 $0.00 + 0.00% $0
22 $44,725 $225,975 $0.00 + 1.95% $44,725
23 $225,975 $3,534.38 + 2.50% $225,975
24 $0 $60,000 $0.00 + 0.00% $0
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1 $60,000 $225,975 $0.00 + 1.95% $60,000
2 $225,975 $3,236.51 + 2.50% $225,975
3 b. Married filing jointly and surviving spouse.
4 If North Dakota taxable income is:
5 Over Not over The tax is equal to Of amount over
6 $0 $74,750 $0.00 + 0.00% $0
7 $74,750 $275,100 $0.00 + 1.95% $74,750
8 $275,100 $3,906.83 + 2.50% $275,100
9 $0 $100,000 $0.00 + 0.00% $0
10 $100,000 $275,100 $0.00 + 1.95% $100,000
11 $275,100 $3,414.45 + 2.50% $275,100
12 c. Married filing separately.
13 If North Dakota taxable income is:
14 Over Not over The tax is equal to Of amount over
15 $0 $37,375 $0.00 + 0.00% $0
16 $37,375 $137,550 $0.00 + 1.95% $37,375
17 $137,550 $1,953.41 + 2.50% $137,550
18 $0 $50,000 $0.00 + 0.00% $0
19 $50,000 $137,550 $0.00 + 1.95% $50,000
20 $137,550 $1,707.23 + 2.50% $137,550
21 d. Head of household.
22 If North Dakota taxable income is:
23 Over Not over The tax is equal to Of amount over
24 $0 $59,950 $0.00 + 0.00% $0
25 $59,950 $250,550 $0.00 + 1.95% $59,950
26 $250,550 $3,716.70 + 2.50% $250,550
27 $0 $80,000 $0.00 + 0.00% $0
28 $80,000 $250,550 $0.00 + 1.95% $80,000
29 $250,550 $3,325.73 + 2.50% $250,550
30 e. Estates and trusts.
31 If North Dakota taxable income is:
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1 Over Not over The tax is equal to Of amount over
2 $0 $3,000 $0.00 + 0.00% $0
3 $3,000 $10,750 $0.00 + 1.95% $3,000
4 $10,750 $151.13 + 2.50% $10,750
5 $0 $4,000 $0.00 + 0.00% $0
6 $4,000 $10,750 $0.00 + 1.95% $4,000
7 $10,750 $131.63 + 2.50% $10,750
8 f. For an individual who is not a resident of this state for the entire year, or for a
9 nonresident estate or trust, the tax is equal to the tax otherwise computed under
10 this subsection multiplied by a fraction in which:
11 (1) The numerator is the federal adjusted gross income allocable and
12 apportionable to this state; and
13 (2) The denominator is the federal adjusted gross income from all sources
14 reduced by the net income from the amounts specified in subdivisions a and
15 b of subsection 2.
16 In the case of married individuals filing a joint return, if one spouse is a resident
17 of this state for the entire year and the other spouse is a nonresident for part or
18 all of the tax year, the tax on the joint return must be computed under this
19 subdivision.
20 g. The tax commissioner shall prescribe new rate schedules that apply in lieu of the
21 schedules set forth in subdivisions a through e. The new schedules must be
22 determined by increasing the minimum and maximum dollar amounts for each
23 income bracket for which a tax is imposed by the cost-of-living adjustment for the
24 taxable year as determined by the secretary of the United States treasury for
25 purposes of section 1(f) of the United States Internal Revenue Code of 1954, as
26 amended. For this purpose, the rate applicable to each income bracket may not
27 be changed, and the manner of applying the cost-of-living adjustment must be
28 the same as that used for adjusting the income brackets for federal income tax
29 purposes.
30 h. The tax commissioner shall prescribe an optional simplified method of computing
31 tax under this section that may be used by an individual taxpayer who is not
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1 entitled to claim an adjustment under subsection 2 or credit against income tax
2 liability under subsection 7.
3 SECTION 2. EFFECTIVE DATE. Section 1 of this Act is effective for taxable years
4 beginning after December 31, 2023.
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Statutes affected: INTRODUCED: 57-38-30.3