The Legislature has approved a comprehensive tax relief bill – that includes both income and property tax relief.
The conference committee on House Bill 1158 met 13 times, before coming out with this version.
Under it, income tax brackets are reduced from 5 to 3, and the lowest tax bracket would pay no income tax. It also provides a $500 property tax credit – that a property owner would have to apply for – as well as increased benefits under the Homestead Credit law.
Rep. Craig Headland (R-Montpelier) chairs the House Finance and Taxation Committee. He was an original proponent of income tax relief – but he told the House that this is a good bill.
"This bill is $515 million of direct taxpayer relief," Headland said.
Headland said the bill also calls for a two year study, to see how the tax relief worked.
Rep. Dan Ruby (R-Minot) said this was the first tax relief plan that he was going to vote against.
"I really do think that this is a convoluted plan, that just makes more hoops to jump through for people to get what they shouldn't have to do extra work to try and get some reduction," Ruby said.
The bill passed the House 84 to 6 – The Senate passed it 45 to 2. It now goes to Gov. Burgum.
