N.D. Tax Commissioner Cory Fong

North Dakota Tax Commissioner Cory Fong said Tuesday he is working with state lawmakers on legislation to address the impact of the Bush tax cuts if they expire at the end of the year.

“We are preparing to introduce legislation during the 2011 legislative session to ensure North Dakota taxpayers are not subject to additional state income taxes that would result if certain provisions of the Bush tax cuts expire,” Fong said in a written statement.

In a news release, Fong said the current standard deduction for married filers who file a joint tax return is twice that of the standard deduction for single filers. But this provision is set to expire unless Congress takes action to extend it before the end of the year.

“We’ve worked tirelessly in the last two legislative sessions to provide meaningful and substantive tax relief to our citizens, reducing the burden on our North Dakota families, businesses, and farmers and ranchers,” Fong wrote. “This is not the time to sit back and allow North Dakotans to be taxed any more just because of the action, or inaction, of Congress.”

The news release said Tax Department analysis shows that if the standard deduction provision for married filers expires, more than 83,000 North Dakota taxpayers would see an increase in their federal taxable income — resulting in an increase in their federal and state income taxes.

Fong said the legislation state lawmakers are working on is designed to prevent North Dakota taxpayers from paying more to the state because of the possible federal changes

Rep. Mike Nathe, R-Bismarck, said the legislation state lawmakers are working on aims to prevent North Dakota taxpayers from paying more to the state because of the possible federal changes.

Fong said if Congress does not extend this provision, married couples filing joint returns could see an increase in their state income tax of up to $94 per year and the state would see an increase of about $6.7 million per biennium in additional tax revenue. The group of lawmakers expects to introduce legislation at the beginning of the 2011 legislative session.