1. North Dakota Office of State Tax Commissioner Cory Fong, Tax Commissioner

2. www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner North Dakota State Tax System Like a 3-Legged Stool (2010) Collections (in Millions $) 1.Sales/Use Taxes=$776.4 35.8%(State) 2.Income Taxes =$576.3 26.6%(State) 3.Property Taxes =$816.2 37.6%(Local)

3. www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner Major Taxes as a Percent of Income Family of 3 - $50,000 per year SOURCE:Tax Rates and Tax Burdens in the District of Columbia – A Nationwide Comparison 2009, Government of the District of Columbia

4. www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner

5. shift to www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner shift to primarily oil/gas taxes Schools Cities Counties Townships Misc Districts Sales Income Oil/Gas Alcohol & Tobacco Lottery & Gaming Financial Institution Other State Resources

6.  If property tax is abolished, ►the lost revenue would need to be replaced  Sales tax rate would double Current rate New rate 5%10% www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner

7.  If property tax is abolished, ►the lost revenue would need to be replaced  Individual Income Tax rates would increase 279% over 2011 rates ►Across the board increases! 2011 rates New rates 1.51%5.72% 2.82%10.69% 3.13%11.85% 3.63%13.75% 3.99%15.11% www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner

8.  If property tax is abolished, ►the lost revenue would need to be replaced  Corporation Income Tax rates would increase 720% over 2011 rates 2011 ratesNew rates 1.68%13.9% 4.23%34.6% 5.15%42.2% www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner

9. www.nd.gov/tax 701.328.7088 Office of State Tax Commissioner Cory Fong, Tax Commissioner Office of State Tax Commissioner ► taxinfo@nd.gov ► www.nd.gov/tax ► 701.328.7088 or 877.328.7088 ► 600 E Boulevard Ave, Dept. 127 Bismarck ND 58505-0599