Legislature kills bill to use oil tax savings for tax relief

BISMARCK, N.D. (AP) — House and Senate negotiators have agreed to kill the idea of tapping funds from the state’s voter-approved oil tax savings account to help offset income taxes.

A conference committee stripped the proposal from the state Tax Department’s budget on Wednesday.

The bill aimed to use half of the earnings from the Legacy Fund to reduce individual and corporate income taxes.

Republican Rep. Craig Headland, the bill’s primary sponsor, argued that the income tax relief would spur the economy and make North Dakota more competitive with other states that don’t have income tax.

Gov. Doug Burgum and Senators had opposed the idea.