ND SB2104

Expands the definition of "member" in composite return rules to include passthrough entities, settlors of grantor trusts, and beneficiaries of trusts, in addition to individual shareholders and partners.

Expands the definition of "nonresident" to include passthrough entities that do not have their commercial domicile in North Dakota and trusts not organized in the state.

Requires passthrough entities to withhold income tax at the highest individual marginal rate on distributions to nonresident members, with the entity liable to the state for payment and entitled to credit from members.

Exempts passthrough entities from withholding requirements for nonresident members with less than $1,000 in annual income from the entity, members covered by composite returns, and lower-tier passthrough entities that elect exemption and certify compliance.

Effective for taxable years beginning after December 31, 2013.