The North Dakota Senate has rejected a measure that would have taken half the earnings from the state’s Legacy Fund to reduce income tax rates.
The sponsor – Rep. Craig Headland (R-Montpelier), the chairman of the House Finance and Taxation Committee – said the intent is to eventually eliminate the state income tax.
The measure passed the House 61 to 31.
But Sen. Jessica Unruh (R-Hazen) told her Senate colleagues North Dakota already has a very low state income tax rate.
"What having an income tax does, is allows everyone to have a little skin in the game, when it comes to government-funded services," Unruh said. "It also keeps us from being too reliant on one industry, when it comes to our tax revenue."
The measure failed on a 42 to 4 vote.