By Dave Thompson
Bismarck, ND – The sponsor of a bill to gradually phase out North Dakota's corporate income tax says he questions the state Tax Department's projected fiscal impact of the bill.
Minot Reoublican Senator Randy Schobinger's bill would gradually eliminate the income tax. And for the last six months of the biennium, the measure would raise the sales tax by a quarter percent.
Schobinger had said he wanted a "revenue-neutral" measure. But the tax department is projecting the state would LOSE $1.1 million -- if the bill was passed in its present form. Schobinger says he questions the analysis.
"When the amendments were produced, a request was made to the Tax Department as to where that sales tax would need to be in order to be revenue-neutral. I guess there's some question of the Tax Department as to why they have now written a fiscal note that shows it in that manner."
Schobinger says he may ask the state Tax Department to take another look at the measure -- and see what might be done to make the measure revenue-neutral.