Peace Garden News

The National Federation of Independent Business (NFIB) in North Dakota has declared the 2023 legislative session a success following its conclusion on April 29. During the 75-day session, lawmakers debated 990 bills and resolutions. They reserve the option to convene a special session before the 2025 session if needed.

“Tax relief is a major priority for our small businesses," said NFIB North Dakota State Director Alison Ritter. "The package passed this session reduces and reforms the income tax code as well as providing property tax relief for homeowners."

Ritter also acknowledged the legislature's efforts in defeating proposals that could impose additional burdens on Main Street businesses. Some significant victories highlighted were income and property tax reforms.

**Tax Relief**

The tax relief package, addressed in HB 1158, amounts to $515 million. Under the new law:

- Income tax is eliminated for single filers earning less than $44,725 and for married couples earning less than $74,750.

- A 1.95% tax is applicable for incomes between $44,725-$225,975 for singles and $74,750-$275,100 for couples.

- A 2.5% tax applies to incomes above these thresholds.

- Additionally, $157 million is allocated for property tax credits, assuring a $500 credit for homeowners' primary residences in the 2024 tax year. Homeowners aged 65 or older with income under $70,000 will see an increased homestead tax credit.

**Childcare Assistance**

Through HB 1540, $65.6 million is designated to assist with childcare, although lower than Governor Burgum's proposed $76 million. The allocation includes:

- $22 million to expand aid for families of four earning below $80,000 annually.

- $15 million to encourage daycares to care for more infants and toddlers.

- An additional $15 million for childcare worker training and support for new daycare businesses.

- $5 million matches private employers' daycare cost contributions for their employees.

**Other Legislation**

HB 2170 allows minors over 16 to work in hazardous professions if enrolled in an approved education program or apprenticeship. It also mandates a study on establishing a state apprenticeship office.

HB 1487 commissions a study of swipe fees costs for North Dakota retailers in managing state sales and use tax.

**Defeated Bills**

Three proposals failed to pass:

- HB 1460, which sought to mandate paid family medical leave.

- HB 1507, intended to raise the minimum wage to $9 per hour with a subsequent annual increase.

- HB 1527, proposing employers use the federal E-Verify system for new employees.

Overall, the session's legislation is viewed positively by the state’s small business community.