|FOR IMMEDIATE RELEASE||Contact: Beth Boustead, Public Information Officer, 701.328.3039|
|Tuesday, May 17, 2011|
FONG: Comprehensive Tax Relief Means Revised Withholding Tables
BISMARCK, N.D. – Tax Commissioner Cory Fong today released the newly updated North Dakota Income Tax Withholding Rates and Instructions and updated Individual Income Tax Withholding Tables. The publications were updated to reflect income tax relief passed by the 2011 Legislature and signed into law by Governor Dalrymple.
"The new Withholding Rates and Instructions and the new Withholding Tables are a result of House Bill 1047, the comprehensive tax relief package, that was passed this legislative session," said Fong. "North Dakota's continued strong economy has enabled the state to offer North Dakotans substantial tax relief in a package that is sustainable."
The comprehensive tax relief package (HB 1047) provides $120 million in individual income tax cuts across the board by reducing individual income tax rates by 17.9 percent.
"The reduction in individual income tax rates will help nearly 300 thousand individuals, as well as approximately 25 thousand small businesses and about 33 thousand farmers who file North Dakota individual income tax returns," said Fong.
The Tax Department updated its Income Tax Withholding Rates and Instructions booklet to reflect the changes in rates, including the Individual Income Tax Withholding Tables that employers rely on in their payroll operations. The new booklet and tables are available on the department's web site at www.nd.gov/tax.
"Although the lower rates are in effect for the entire year, there is no need to try to adjust the state withholding to counteract several months of applying the higher rates," said Fong. "Employers may use the charts going forward as they calculate their payroll." This may result in larger refunds when taxpayers file their 2011 returns, added Fong.
In addition to the individual income tax relief, the level of property tax relief that began in 2009 will remain in place for North Dakota's property owners. The comprehensive tax relief package (HB 1047) provides for 70 percent state supported funding to school districts for nearly $350 million. This continuation in state support will retain the reduction of up to 75 mills in property taxes for homeowners, farmers, ranchers, and commercial property owners.
"I am pleased that the state is able to continue offering property owners some relief," said Fong. "It is what taxpayers want and it is the right thing to do, especially when the state is enjoying a time of prosperity and growth."
Financial institutions and corporations will also receive a reduction in tax rates. About 260 financial institutions and over 10,000 corporations file North Dakota income tax returns.
# # #