A BILL for an Act to amend and reenact subdivision u of subsection 2 of section 57-38-30.3 of the North Dakota Century Code, relating to an income tax deduction for retired law enforcement personnel benefits; and to provide for retroactive application.
SB2093 would expand North Dakota’s income tax deduction for retired law enforcement personnel benefits. The bill amends the state income tax statute to allow a deduction for retirement income received by a “qualified retired peace officer,” defined as someone who has served at least 20 years as a peace officer or who medically retired with a permanent disability, and it also extends the deduction to the surviving spouse of a deceased qualified retired peace officer, to the extent the income is included in federal taxable income.
The bill also clarifies the definition of “peace officer” and “retired law enforcement personnel benefits,” tying the deduction to retirement income from an employer-maintained retirement plan connected to law enforcement service. It includes a retroactive application provision, making the change apply to taxable years beginning after December 31, 2023.
If enacted, SB2093 would amend section 57-38-30.3 of the North Dakota Century Code to broaden an existing state income tax deduction for certain retired law enforcement personnel and their surviving spouses. The practical effect would be to reduce taxable state income for eligible retirees and beneficiaries, lowering their North Dakota income tax liability for qualifying retirement benefits. The bill would also create a retroactive tax benefit for affected taxpayers beginning with the 2024 tax year.
The available record shows no committee transcript or recorded vote details, so there is no documented floor or committee debate to gauge support or opposition. The bill’s introduction and amendment language suggest a targeted tax benefit for public safety retirees, but the measure ultimately failed on May 1, 2025, indicating it did not secure final legislative approval.
The main policy issue appears to be whether to extend a state tax preference to a specific class of retirees—law enforcement personnel—and to their surviving spouses. Potential points of contention would likely include the revenue impact of the deduction, whether the eligibility criteria are appropriately narrow or broad, and whether the retroactive application is warranted. Because no discussion transcript is provided, the specific arguments for or against the bill are not documented in the available materials.