SB 2292 Summary

• Amends North Dakota's income apportionment rules for nonresident businesses and passthrough entities to conform with the multistate tax compact by requiring use of the standard apportionment method in section 57-38.1-09.

• Creates three optional apportionment elections for non-passthrough entities: a double-weighted sales factor election for taxable years 2016-2017; a six-times weighted sales factor election beginning in 2018; and a single sales factor election beginning in 2019, each binding for five consecutive years.

• Repeals section 57-59-02 relating to the optional computation provision of the multistate tax compact.

• Amends the multistate tax compact language to clarify article references and ensure North Dakota's legal counsel attends commission meetings.

• Makes the act effective for taxable years beginning after December 31, 2014.