ND SB2170

Excludes compensation from state income tax for nonresident employees present in North Dakota for no more than 20 days per tax year, provided they have no other state income and their home state offers reciprocal treatment.

Prohibits the exclusion for professional athletes, entertainers, persons of prominence performing per-event services, construction workers, and key employees as defined under Internal Revenue Code section 416(i).

Eliminates employer withholding requirements for nonresident compensation that qualifies for exclusion, except employers must count all days an employee is present and working for related entities.

Exempts employers from penalties for miscalculating presence days if they relied on contemporaneously maintained time and attendance records, employee travel records, or travel expense reimbursement records.

Effective for taxable years beginning after December 31, 2012.