SB 2349 Summary

• Reduces North Dakota corporate income tax rates across three brackets: income up to $25,000 taxed at 1.41% (down from 1.48%), income $25,000-$50,000 taxed at 3.55% (down from 3.73%), and income over $50,000 taxed at 3.31% (down from 4.53%).

• Lowers individual income tax rates for all filing statuses (single, married filing jointly, married filing separately, head of household, and estates/trusts) with reductions ranging from 0.12 to 0.22 percentage points across multiple tax brackets.

• Updates individual tax rate schedules for taxable years beginning after December 31, 2014, with specific income brackets and corresponding tax calculations provided for each filing status.

• Requires the tax commissioner to adjust tax brackets annually using federal cost-of-living adjustments while maintaining the same rates for each bracket.

• Passed Senate 33-14 and House 59-32, effective for taxable years beginning after December 31, 2014.