Secretary of State Certifies Tax Measure: Measure Will Appear On November 4th Ballot

FOR IMMEDIATE RELEASE – August 25th, 2008

Contact: Dustin Gawrylow, (701) 223-9887

 

Secretary of State Certifies Tax Measure
Measure Will Appear On November 4th Ballot

Bismarck, N.D. – This morning, North Dakota Secretary of State Al Jaeger certified Measure Two for the November 4th, 2008 General Election Ballot. Measure Two, if passed by a simple majority of the voters, would reduce individual state income tax rates by 50% across-the-board and corporate state income tax rates by 15% across the board.

“We are pleased that the people of North Dakota will have the ability only to reduce their own tax burden, said Dustin Gawrylow, state policy director at Americans for Prosperity of North Dakota. “Measure Two represents permanent and immediate tax relief for North Dakotans who have contributed to the vast state surplus everyone now agrees will exceed one-billion-dollars.”

State Income Tax Collections
(in millions $)

Individual

Corporate

Total

Total After
Measure #2

2001-03

396.2

88.4

484.6

2003-05

452.5

128

580.5

2005-07

587.7

232.3

820

2007-09*

704

265.3

969.3

 

2009-11*

758.9

265.6

1024.5

605.2

*based on August 4th, 2008 OMB Projections: combined income tax revenue will have more than doubled from 2001 to 2011.

“This is a great day for the taxpayers and voters of North Dakota,” said Measure Two Committee Chairman Duane Sand. “We’ve traveled the state for over two years now, starting with Former Governor Ed Schafer and myself on the Taxpayer Trust Tour in 2006 and finishing last month with the petition process, and one thing is clear – the people of North Dakota are ready for Permanent Tax Relief.”

Income tax revenues have nearly doubled in eight years, helping to produce the more than $1 billion in surplus in North Dakota. We can afford to give some of people’s money back to the working men and women of North Dakota---without hurting essential services and needs in the state,” added Gawrylow.

An official Fiscal Impact Note will be released by the Legislative Council at a later date. Current estimates based OMB’s August 4th data points toward a static fiscal impact of $419 million during the 2009-11 biennium. Measure Two, if passed, would also have a $104 million impact on current biennium revenue because it would take effect on January 1st, 2009 and the current biennium does not end until June 30th, 2009.

The 2009 legislature will still have more revenue from the combined Corporate and Individual Income Tax sources than the 2003 legislature had available from those two sources.

"Last session, we spent 78 days debating how to provide tax relief to North Dakotans. However, the compromise we eventually approved expires soon. This measure will guarantee that taxpayers get long-term relief, not rebates based on what's might be agreed to each time the legislature meets,” State Representative and Measure Two sponsor Blair Thoreson said.

“The average family household earning $50,000 in taxable income will save around $500, that is real money to a lot of families. We should look at the surplus as an opportunity to increase the disposable income of the average family in North Dakota. We hear about North Dakota being a low wage state all the time, now is the time to declare that the state will be part of the solution to that problem, rather than adding to it,” concluded Gawrylow.

Married Filing Status

If your current Taxable Income Is:

You now pay:

Post Tax Cut Savings:

$25,000

$526

$263

$50,000

$1,051

$525

$75,000

$1,973

$986

$100,000

$2,957

$1,478