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Tax Reform Key to State's Continued Economic Success

he upcoming Legislaiive Seiiiori is six months away, and one of the key topics

will

be tax reform. According to the

2Al2Tax Foundation Report. North Dakota has some room for improvement. The state was ranked 29h in terms of
state business tax climate, and the follor+'ing chart illustrates how North Dakota ranks in other key tax categories:

of natural resources and coupled with the economic matches up with its immediate neighbors and other states downturn the rest olthe nation is experiencing and the in the region. Currently, two of the state's three neighbors fact businesses have been willing to move to where the are in the top 10 (South Dakota #2 and Montana #8) in natural resources are located the state has experienced terms of state business tax climate and Wyoming, which great economic success. But how long will that last? is in the same region as North Dakota, ranks #1. As North Where North Dakota's business climate comes into Dakotat economy -qro\\'s and businesses look to expand play is in the necessary diversiflcation of its economy. and grou-. taxes are one factor thel rvill consider q'hen To sustain long-term growth, North Dakota needs to choosing rvhere to locate. Unlike changes to health care, become more business friendly. One of the ways this -- --ran-tie a<reomptishefisthrorrgfi-improvirgthestate'sttrtrsysfems;-v*Iich t.akedecadestuimplement. changes to the tax code can quickly improve a strucrure.
state's business climate. Taxes matter to business. Business taxes affect

State lawmakers need to be aware of how North Dakota

job creation and retention, location, competitiveness, the transparency of the tax system, and the long-term health of a state's economy. With today's
business decisions,

modern market characterized by mobile capital and labor, businesses tend to locate where they have the greatest
best tax systems

competitive advantage. Evidence shows states with the will be the most competitive in attracting new businesses and most effective at generating economic
growth.

It is important to note taxes are one factor in business decision making. North Dakota is atop a great wealth

In the last legislative session, the North Dakota Chamber led the charge to cut individual and corporate income taxes by 20 percent. The top individuai rates fell from 4.86 percent to 3.99 percent, while the top corporate rate fell from 6.5 percent to 5.15 percent. Together these changes improved North Dakotat rank from 33'd to 29'h. In the upcoming session North Dakota is in the position to offer an even greater tax relief package, and the North Dakota Chamber is in the process of working with its members and business leaders to develop this package. Now is the time to make a move towards a more business friendly tax structure that will help diversify this ever growing
economy.

THE

VOICE

OF

NORTH

DAKOTA

BUSINESS

I{orth Dakotans Made Statement with &{easure

Defeat: Tax Reductions Key to State's Success
ByAndy Peterson, North Dakota Chamber President & CEO

Tn June- afler more than four Imonths of spirited debate on

Measure 2, the people of North Dakota spoke. Their message was as unmistakable as it was historic when they voted down Measure 2by a wide margin of 74 percent to 26 percent. I aiways believed once North Dakotans saw the facts, they would reject this ill-conceived, reckless and radical plan

to amend our states constitution and eliminate property taxes. What this campaign demonstrated is, the people of North Dakota take their role as citizens seriously. Throughout this campaign, our coalition was continuously amazed at the turnout

at numerous public forums we participated in across the state. What we learned from all these debates is the people of North Dakota want tax reform, but Measure 2 was simply too radical and the implications of the loss of local control were too great. It was a plan without a plan, and North Dakotans protected the important right to decide for themselves what is best for their community.

I want to thank you, the members ofour organization, for all ofyour
support in this long campaign. We were proud to be in a leadership role with the Keep It Local North Dakota Coalition. As a result, we opened

new lines of communication with organizations we have not worked with in the past. All of this will help as we now look forward to broad based tax reforms for our state. With Measure 2 behind us, we can now focus on tax reliefand reform across all ofour stare's tax streams. Now, we are in the position of looking at tax reductions across the boar{ something the North Dakota Chamber will champion as we head into the next legislative session. Thank you again to all ofour members, without your support we would not have been able to run such an efficient campaign to defeat Measure 2.

Policy Summit to Feature Congressional Candidates

Th" North Dakota Chamber ol I Commerce is holding its second
annual Congressional Policy Summ it on Thursday. October I I in Bismarck. This event focuses on federal policy 7\. issues that affect all businesses in North Dakota. The evening provides an opportunity to leam more about the state's candidates for U.S. Senate and Congress through a facilitated discussion ofseveral federal issues. This is also an opportuni|, for participants to ask questions about the issues that affect business and the state's economy. Senate candidate Heidi Heitkamp and Congressional candidate Pam Gulleson have confirmed their participation, and Congressman Berg and Congressional candidate Kevin Cramer are also invited. The afternoon includes presentations and discussions of Nvo issues of great imporLance to the state: energy policy and health care. Participants will hear lrom industry experts and have the opportunity to discuss the business community's involvement in both areas.
Save this date and plan to attend this exciting event. Your participation in the discussion of these issues plays a significant role in how the North Dakota Chamber and the state's con gressional del egation move forward. The event begins at 3 p.m. on October 1. and is held at the Best Western Ramkota Hotel in Bismarck. More details will be provided in the near future. lf you have any questions or would like to be an investor in this event, please contact Carissa Richter at101-2220929 or carissa@ndchamber.com.

RENEWALS
American Crystal Sugar Co., Moorhead John Deere Seeding Group, Valley City MDU Resources Group, lnc., Bismarck

THE

YOICE

OF

NORTH

DAKOTA

BUSINESS