North Dakota session ends with tax cuts; record budget
(The Center Square) – North Dakota lawmakers passed historic tax cuts and a record $19.6 billion budget in the 2023-2024 legislative session that ended early Sunday morning.
Lawmakers passed 538 bills passed that Gov. Doug Burgum signed. Forty-five bills passed and await the governor’s signature. Burgum has until May 19 to sign the remaining bills.
The budget approved by the Legislature was higher than that the governor presented in December. Burgum proposed a $5.9 billion general fund budget and a total budget of $18.4 billion. Lawmakers passed a $19.6 billion budget, including $6.8 billion for the general fund.
North Dakotans will get the largest tax break in the state’s history, according to the governor. Taxpayers will see $358 million in individual income tax relief by eliminating the state’s bottom tax bracket and merging the top four brackets into two with reduced rates. Homeowners can also claim a $500 property tax credit on their primary residence, bringing the total amount of tax breaks to $515 million.
“We’re grateful to our legislative partners whose thoughtful work allows North Dakotans to save more than half a billion dollars over the next two years and moves us further down the path toward becoming a zero-income tax state,” Burgum said in a statement.
Lawmakers passed several education bills. Senate Bill 2284 gives $6 million for free meals to K-12 students whose family income is between 130% and 200% of the federal poverty level, and House Bill 1003 freezes tuition through 2025, among other education bills.
The governor vetoed a school choice bill that would have set aside $10 million for students who chose to go to a private school. The governor said in his veto message the bill did “not go far enough to promote competition and expand choice in K-12 education.” The House failed to override the veto. It was one of seven vetoes issued by the governor.
Lawmakers approved $66 million for child care services. The funding will address labor shortages, which Burgum said is the state’s most significant barrier to economic growth.
House Bill 1286 will remove the state’s trigger tax on oil production, which charged oil producers a higher tax rate if oil prices increased and discouraged companies from investing in North Dakota, the governor said.
Other workforce bills that passed include House Bill 1018, which gives $12.5 million for the Regional Workforce Impact Grant, Senate Bill 2142, which provides several million for workforce training and internship support, and House Bill 1382, which allows state scholarship dollars for apprenticeship programs in North Dakota, among other workforce bills.
