HB 1222 Summary

• Imposes a flat 1% income tax rate on both individual and corporate taxable income, replacing the current progressive tax bracket system.

• Eliminates multiple chapters of North Dakota tax code including existing income tax provisions, new jobs training programs, and various tax credit/exemption chapters.

• Modifies tax collection procedures to remove references to eliminated income tax provisions while maintaining collection authority for remaining taxes like sales and use taxes.

• Effective for taxable years beginning after December 31, 2019, with certain marriage penalty credit provisions effective for taxable years beginning after December 31, 2018.