The Bismarck tribune. [volume] (Bismarck, N.D.) 1916-current, 1925-03-03

IOuOWInR IS one u u series VI
articles covering provisions Of the
state income tax law prepared by the
state tax department.
No.
Who Is Subject To Tax?
The amended state income tax
laws of 1923 provided that all per-
sons who reside in the state are sub
ject to the tax on their entire net
income even though all or part
Of it may be derived from sources
outside of North Dakota. Nonresi-
dent individuals are not subject to
tax. Citizenship has nothing to do
with the matter. Every individual
who was resident of the state on
Jan. of the tax year is subject to
the tax. The term "tax year" means
the calendar year for which the tax
is payable. Every individual who
was resident Of the state on Jan.
l, 1926 is subject to the tax on his
entire net income received during
the calendar year 1924.
All state, county, township and
municipal officials or employees, in
Guiding school teachers and school
officials as we'll as professors and
instructors in state educational in
stitutions, are subject to tax on their
net income from such sources. Spe-
cial attention is called to this mat
ter as there is widespread i'm
preston that compensation of such
persons is exempt from taxation I'M
der the state income tax law. This
is not the case.
Partnerships as such are not sub
ject to tax. The partnership is re.
garded merely as an association of
q number of individuals. The indi-
vidual members of partnership are
subject to tax.
All corporations engaged in bust
ness or owning property in this state
are subject to the tax unless express
ly exempt. The law exempts from
taxation corporations organized ex-
clusively for religious, charitable
and educational purposes. Also GER
tain other organizations no part of
the net income of which insures to
the benefit Of any private stock
holder.
Who Must Make Returns?
Every unmarried person who was
a resident of this state on Jan. l,
1925, having u net income Of $1,000
or over must file return even
though no tax need be paid. Age is
not material. Consequently a minor
child having an income of his own
of $1,000 or over must file a return.
Every married person having net
income Of $4,000 or over is required
to file return. 1t is the combined
income Of the husband and wife that
will determine whether a return
must be filed.
Partnerships are not subject to the
tax, but every partnership must file
return showing the income Of the
partnership and how much of that
income belongs to each partner.
All corporations not exempt from
the tax must file returns regardless
of the amount Of their income.
Every flduclary or trustee must
make return for the estate or
trust for which he acts.
Every individual, partnership or
corporation being resident or hav-
ing a place of business in the state
must make a return of information
covering payments of salaries of
1000 or over or payments of inter-
est, rents or other gains amounting
to 5000 or over.
All returns must be filed on or be-
fore March 18th, except in the case
Of corporation fiscal, year returns.
The amount Of tax due is payable
when the return is filed. Returns
must be filed with the state tax
commissioner at Bismarck, N. Oak.
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