ND HB1409

Amends North Dakota tax law to change the tax base for individuals, estates, and trusts from federal taxable income to federal adjusted gross income, effective for taxable years beginning after December 31, 2012.

Establishes living exemptions ($20,000 for single filers, $40,000 for joint filers, $30,000 for head of household) and individual exemptions ($10,000 per taxpayer/dependent, plus $10,000 additional for blind individuals and unremarried widows/widowers age 65+).

Modifies the exclusion of capital gains, dividends, and interest income to apply only to the extent included in federal adjusted gross income, and adds corresponding language to qualified investment fund distributions.

Sets a flat 3% income tax rate for estates and trusts in the period effective after the first two taxable years beginning after December 31, 2010.

Updates section 57-38-01 subsection 12 to distinguish between taxable income definitions for corporations versus individuals, estates, and trusts, excluding federal alternative minimum tax amounts.