A bill to create an income tax reduction for veterans in North Dakota passed the state House on Monday, despite a "Do Not Pass" recommendation from the House Appropriations Committee.
House Bill 1053, from primary sponsor Steve Vetter, R-Grand Forks, passed 50-42 and will be moving on to the Senate for further approval.
The bill would apply to benefits received by retired military personnel and those received by a veteran's surviving spouse. And, according to Vetter, it should persuade more veterans to stay in North Dakota and contribute to the state's economy and workforce.
"It's really a job and base retention bill," Vetter said after the House vote. "I think one of the big things the bill will do is really help with job and base retention. It'll ultimately bring in more military retirees, (who) will claim North Dakota as their home."
On Thursday, the House Appropriations Committee voted 15-6 to recommend the House not pass Vetter's proposal, after the House Finance and Taxation Committee voted 8-5 to give the bill a "Do Pass" recommendation in January, with one committee member not voting.
A fiscal note from the office of the state tax commissioner said the proposal could reduce state general fund revenues by about $3 million in the next biennium. Of that amount, the note said about $132,000 would be attributable to payments to survivors of retired military members.