Your Army

By The Associated Press

One dollar notes with the signature of US Treasury Secretary Janet Yellen are unveiled at the Bureau of Engraving and Printing Western Currency Facility on December 8, 2022 in Fort Worth, Texas.
One dollar notes with the signature of US Treasury Secretary Janet Yellen are unveiled at the Bureau of Engraving and Printing Western Currency Facility on December 8, 2022 in Fort Worth, Texas. (Photo by ANDY JACOBSOHN/AFP via Getty Images)

BISMARCK, N.D. — Republican Gov. Doug Burgum signed a bill Monday that exempts military pay from state income taxes for active duty, National Guard and Reserve members.

Under this bill, North Dakota service members’ income taxes are estimated to drop by $4 million between 2023 and 2025, the governor’s office said. Military pay includes federal costs for training, education, mobilization and bonuses as well as state pay when called to support an emergency on state active duty.

Burgum’s office said military service members often live in states with exemptions for military pay or no income tax as their official state of residence.

He said by taking this action, “North Dakota is recognizing the sacrifice of military service and building on the momentum of our ongoing efforts to make ours the most military-friendly state in the nation,” Burgum said.

State Sen. Scott Meyer of Grand Forks, who sponsored the bill, said in a statement that the bill will help active duty members and their families decide where to set their state residency. He also said it will assist with National Guard recruitment.

During testimony on the legislation, proponents said that 12 states have already exempted military pay from state income taxes, including Minnesota, and 14 states partially exempt it. Nine states have no income tax, including South Dakota.

North Dakota currently has about 5,500 National Guard and Reserve members and nearly 7,300 active duty service members, primarily at the Grand Forks Air Force Base and Minot Air Force Base, according to the Department of Defense.

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