One of the uncertainties following this week’s new budget forecast is whether the Legislature will be granting income and corporate tax relief.
Two bills are pending in the Legislature – one would grant a total of $125 million in individual and corporate income tax relief – the other has a $150 million price tag.
"I think there will be something," said House Majority Leader Al Carlson (R-Farg0). "My reaction is to do something. But we're going to have to delay it until the money's there."
Senate Majority Leader Rich Wardner (R-Dicksinon) says it’s on hold, while the Legislature looks at funding its priorities. But he says the Legislature over the last three bienniums has given significant income tax relief.
"If we were to compare this current tax season with three bienniums ago, there's over $600 million less income tax collected today," said Wardner. "It's staying in the pockets of the people of North Dakota."
Wardner says he hears virtually no complaints about the state’s income tax. Rather, he hears a lot of complaint about property taxes being too high.
"And we do have some property tax relief in our legislation," said Wardner. "We plan to keep it there."
Democratic leaders say those bills shouldn’t pass. Senate Minority Leader Mac Schneider (D-Grand Forks) says lawmakers should concentrate on giving property tax relief.
"We have the wherewithal to extend the 12 percent state paid property tax credit, and provide even deeper relief," said Schneider. "But we'll have a very difficult time doing that if we're cutting personal and corporate income taxes and funding other priorities. Something's gotta give."
Senate Appropriations Committee chairman Ray Holmberg (R-Grand Forks) says he doesn’t hear any clamor for income tax relief.
"I think we have built into this budget a geat deal of tax relief the people told us they want," said Holmberg. "And that's property tax relief."
