HOEVEN SIGNS $118.6 MILLION, BROAD-BASED TAX RELIEF PACKAGE

FARGO, N.D. – Gov. John Hoeven today was joined by legislators and local officials to sign Senate Bill 2032, a $118.6 million, broad-based tax relief package for the people of North Dakota.

“With our aggressive economic development efforts, we are growing and diversifying North Dakota’s economy,” Hoeven said. “A growing economy not only makes more opportunities available for our citizens, but also enables tax relief.”

“Back in September, we proposed a property tax relief plan to ease the burden of rising taxes for homeowners, farmers, ranchers and businesses,” Hoeven said. “Working with legislators, we passed a bill that provides a 10 percent income tax reduction against property taxes across the board. This measure, as well as additional financial assistance to counties for schools, State Aid Distribution, oil and gas revenues, social services and other expenses adds up to real tax relief for our citizens.”

The measure includes:

A 10 percent property tax credit against income taxes for homeowners, farmers, ranchers and commercial businesses.

Expanded Homestead Tax Credit relief for seniors and people with disabilities who own their own homes or rent.

Elimination of the marriage tax penalty for middle-income couples.

“We in the Tax Department are proud to have played a key role in initiating meaningful tax relief for the people of North Dakota, and now we are working to implement it,” said Tax Commissioner Cory Fong. “We will be laying the necessary groundwork over the months to come in order to inform the public of the benefits this plan provides to taxpayers.”

Property Tax Relief: Under the plan, married couples filing jointly, farmers, ranchers and businesses will be able to claim up to $1,000 of their property tax liabilities, and individual income tax payers will be able to deduct up to $500 on their state tax returns. Individuals who don’t have a state income tax liability can file for a voucher that they can apply to their local property taxes, or they can carry the credit forward for up to five years.

Tax Relief for Seniors and People with Disabilities: The bill nearly doubles funding for the Homestead Tax Credit program to $8.1 million. The program provides property tax relief for low income seniors and people with disabilities who own homes or rent. Expanded eligibility means a total of 11,350 homeowners will now qualify for the credit, 8,000 more than in 2005; more than 1,700 additional renters will also qualify, for a total of more than 3,000.

Elimination of the Marriage Penalty: SB 2032 creates a targeted tax credit of up to $300 to eliminate or reduce the marriage penalty for married taxpayers filing jointly.


In addition to the $118.6 million of tax relief included in SB 2032, other legislation helps to reduce the tax burden for local communities, including a landmark $91 million school funding bill. In addition, the state is also providing a combined $24 million to counties by assuming the counties’ costs for child support enforcement; disbursing more State Aid Distribution dollars; increasing oil and gas production tax revenues; and providing other state aid.

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