The proposed amendments to Senate Bill No. aim to revise the income tax rates for individuals, estates, and trusts in North Dakota, specifically by updating the tax brackets and rates outlined in section 57-38-30.3 of the North Dakota Century Code. The bill introduces new income thresholds for various filing statuses, increasing the income limits for tax brackets and adjusting the corresponding tax calculations. For instance, the income thresholds for single filers, married couples filing jointly, and heads of household have all been raised, which may result in lower tax liabilities for many taxpayers. Additionally, the bill includes provisions for a retroactive application of these changes to taxable years beginning after December 31, 2023, and establishes an effective date for the new tax rates starting after December 31, 2024.

Furthermore, the bill modifies the income tax deduction for retired law enforcement personnel benefits. It expands the definition of eligible recipients to include surviving spouses of deceased qualified retired peace officers and clarifies the criteria for what constitutes a "qualified retired peace officer." The amendments ensure that retirement income received by these individuals can be deducted from taxable income, provided it was included in federal taxable income. This change aims to provide financial relief to retired law enforcement personnel and their families, recognizing their service and sacrifices.

Statutes affected:
INTRODUCED: 57-38-30.3
Adopted by the Senate Finance and Taxation Committee: 57-38-30.3
FIRST ENGROSSMENT: 57-38-30.3
Prepared by the Legislative Council staff for Representative Hagert: 57-38-30.3
PREFILED: 57-38-30.3