Eliminating state income taxes?
Some Republican state lawmakers are proposing an elimination of state personal income and corporate income taxes.
Rep. Scott Louser (R-Minot) and a group of GOP legislators has floated the idea.
And North Dakota’s House Majority Leader is proposing a four year phase-out of state personal and corporate income taxes. Rep. Al Carlson (R-Fargo) says his plan is to cut the income taxes 25 percent per year for the next four years.
"That gives you time to react through another session, to see what markets do," said Carlson. "To go from where you're at to zero would be a real stretch this time."
The state Senate Majority Leader is also being cautious about eliminating state income taxes.
"I think, at some point, we will," said Sen. Rich Wardner (R-Dickinson). "But I don't know if this is the right time to pull the trigger on it."
Wradner said the state may have to keep the income tax for another biennium or two.
"I think, down the line, when the Legacy Fund really kicks in, then we'll be ready to do it," said Wardner.
The Legacy Fund gets 30 percent of oil tax revenues. It now has over $2 billion. The interest from that fund can be spent starting in 2017.