Lawmakers Discuss Taxes | Video

Jessica Roose | 1/21/2013

When a state has as much surplus money as North Dakota, it`s no surprise that some want to cut taxes. Members of the House Finance and Taxation Committee heard discussion on three bills, two that deal with income taxes and one to try and bring property tax relief.

When the economy is booming everyone is going to want their share of the success.

"I believe it would be a great benefit to the state of North Dakota to eliminate income taxes," said Bismarck resident Andrea Tolman.

Which is exactly what Representative Scott Louser (R) of Minot hopes to do, at least for a couple of years. "Just simply say that our state has a surplus, a very large surplus, which tells us, which tells me anyway, the state has too much money, so let`s cut taxes."

If passed, the legislation would not extend to corporate income taxes, and Louser says it could prove that the state does not need to collect personal income taxes going beyond 2014.

But that`s not the only bill he`s bringing forward. Another would offer some relief to those who were impacted by the 2011 floods. "What this bill would do is provide a income tax credit for the taxes that were paid in the years 2011 and 2012 going forward for the tax year 2013 and extended five years beyond that," Louser said.

The credit would only apply to those who were forced to evacuate during the flood and have decided to stay and re-build their home.

We knew the session would eventually bring up discussion on property taxes. House Bill 1198 would use some of the state`s shares of oil and gas taxes to lower them. Supporters say it would also fix a loop hole with the mill levy reduction grants that are given to school districts.

"In 2008 property tax relief gave residents of North Dakota a welcome tax relief. This welcome property tax relief also came with unintended consequences to some school districts," said Carrington Superintendent Brian Duchscherer.

Those consequences he says came from capping the amount of relief for each district based on 2008 mill levy levels. He says taxpayers in his and similar districts did not get as much relief as other districts that spent more in 2008.

If the proposed property tax relief bill passed it would adjust the grant to be based on the previous school year`s mill levies and not the 2008 levels.

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