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Senate committee votes to prevent automatic withholding from exempt military pay
Summary
The Senate Finance and Tax Committee advanced Senate Bill 2047 to the floor after hearing from the state tax commissioner. The bill would prevent income tax withholding from military pay that is exempt under a prior law unless the service member requests withholding.
Senate Bill 2047, a proposal to stop automatic state income tax withholding from military pay that is already exempt, received a favorable committee recommendation from the Senate Finance and Tax Committee on Jan. 8, 2025.
Tax Commissioner Brian Krasches told the committee the bill amends North Dakota withholding law to “avoid tax being unnecessarily withheld from military pay earned by service members in North Dakota.” He said the change stems from 2023 legislation that exempted certain military pay from state income tax but left…
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