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Senate committee backs change to stop automatic withholding from exempt military pay
Summary
The Senate Finance and Tax Committee voted unanimously to recommend Senate Bill 2047, which would prohibit automatic income-tax withholding from military pay that the 2023 Legislature exempted from North Dakota income tax unless the service member requests withholding.
The Senate Finance and Tax Committee voted unanimously to give Senate Bill 2047 a “do pass” recommendation after a short hearing that centered on preventing unnecessary tax withholding from military pay.
Tax Commissioner Brian Krasches told the committee the bill would amend North Dakota withholding law so employers cannot withhold income tax from military pay that the 2023 Legislature exempted from state income tax unless the service member specifically requests withholding. “The simple change ensures service members…
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