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Income Tax

N. Dakota House votes against suspending state income tax

A bill in the North Dakota state legislature that would suspend the state's income tax has failed in committee.

A bill in the North Dakota state legislature that would suspend the state’s income tax has failed in committee.

The state House Finance and Taxation Committee voted it down by a vote of 23-62. It would have suspended the state’s income tax.

In urging its passage, the sponsor of the bill, Rep. Scott Louser, R-Minot, told the committee members, “The bill is big, bold and aggressive, but yet responsible.”

He said that states with large energy production economies have been increasingly replacing their individual income taxes with a tax on drilling revenues.

North Dakota has seen a rapid growth in natural gas and oil shale production over the past decade.

The House also turned down a bill that would have given a $400 tax credit to state residents over the age of 18. It would have been effective for tax year 2014.