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Senate rejects income tax buydown measure

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.

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