North Dakota tax report highlights 2023 collections and income trends

During a recent Senate Finance and Taxation meeting, North Dakota lawmakers reviewed the state's tax collection data for 2023, revealing significant insights into resident and non-resident contributions. The total tax collected reached approximately $284 million, with residents contributing $227 million and non-residents $57 million, highlighting an 80-20 split in tax revenue.

A key focus of the discussion was the net royalty tax, which generated about $27 million. Notably, $13 million came from residents, while $14 million was sourced from non-residents, indicating a substantial influx of royalty income from outside the state. The meeting also addressed the impact of recent tax reforms, particularly House Bill 1158, which resulted in a considerable number of zero bracket returns. Approximately 65% of resident returns and 48% of non-resident returns reported no income tax liability.

Lawmakers expressed caution regarding future tax relief measures, emphasizing the need to ensure that benefits primarily support residents. The proposed legislation, identified as Bill 1388, aims to provide tax benefits but could also extend relief to higher-income non-residents. As discussions continue, the committee is tasked with balancing tax relief while considering the implications for both residents and non-residents in North Dakota's evolving tax landscape.