The Bismarck tribune., 1929-03-14
PATTEN ACT TREATS
TAXING RESIDENCE
!! OUTSIDE AS FICTION
Actual DweIlers Who Maintain
Voting Status in Other
States Must Pay Here
ANOTHER DAY FOR FILING
So Far About 10000 Persons
Liable for State Income
Tax Have Returns In

North Dakota Is operating under
the amendment to its income tax law
enacted by the recent session OF the
legislature. whereby nonrcsidcnts arc
reached on income originating from
tangible property in this state.
The Patten law was passed cSpc-
cially to reach nonresidents. An
emergency clause was added. whereby
collection Is being made OH 1928 In
comes of these nonresidents. Resi-
dents who have acquired legal resi-
dence in other states while continu-
ing residence here are the especial
aim Of the law.
Today and tomorrow remain for
making returns Of the state income
tax. At the office Of the tax commits
sioner, fourth floor OF the capitol, the
filings have been pouring In the last
few days In sort Of flood At that,
not more than half arc in. Returns
have been made by about 5000 to
10000 persons liable to the tax. From
5000 to 10000 more are expected to
be flied.
Law Is Retroactive
Outside of Individual income tax
PAYERS there remain liable to the tax
4 lot OF corporations and firms that
operate on q fiscal-year BASIS, These
make returns at the close OF their
fiscal year, so the entire amount Of
the tax possible will not be returned
until these exceptions to the filing
limit Of March Is are in. It means
that corporate income taxes will con-
tinue to come in until May 81 to June
S0th.
The change made in the law by the
recent legislature. which makes pay
ment by nonresidents retroactive. was
the simple change Of section 2346a3
Of the supplement to the compiled
laws Of 1913. In the original law this
section read:
article II. section ENonresident
individuals are not subject to tax
Nonresident individuals shall not
be subject to tax under this act"
Outsiders Must Pay on N. d. Income
The amendment Numerically
changes all this in the law. Nonresi-
dents become subject to the law.
But under conditions. AS reenacted.
the section now provides that the
tax imposed by this act shall be
levied. collected and paid annually
with respect to his entire income, not
hereinafter exempted. received by
every nonresident from property
owned or from business carried on
In this state. Such tax shall first be
levied. collected and paid In the year
1920 upon and with respect to the
taxable income for the calendar year
1928 and for any taxable year ending
during the year 1928 and at the rateS
specified In section 2346a11 with re-
spect to net income Of residents Of
North Dakota.
Tho tax imposed herein shall ap-
ply to the entire net income received
from Ill property owned or from busi-
ness carried on in the state by nat
ural persons not residents Of the
state: provided. that income from
mercantile or manufacturing business,
rentals, royalties or operation of any
farm, mine or quarry or from the
sale Of real or personal property for
the purpose Of taxation shall follow
the situs Of the property or business
from which derived: and all other in
como including that derived from per-
sonAl services, professions and voca-
tions, and from land contracts, mort
cages, stocks. bonds and securities
shall follow the residence of the nom
resident recipient.
InteTstate Incomes Divided
"Nonresidents engaged in business
within and without the state shall
b taxed only upon such income Is
Is derived from business transacted,
and property located, within the state
which may be determined by a separ-
ate accounting Of such income, where
such accounting would reflect correct
" the income fairly attributable to
North Dakota, and when made in the
form and manner prescribed by the
tax commissioner. but otherwise shall
Be determined In the manner speci-
fled In section 2346a6 Of the supple
nlent to the compiled laws OF 1919
With respect to the ALLEGATION OF In
come Of corporations engaged in bust
uees within and without the state"
Want Tax on Retiring Capital
At the tax commissioner office It
3 explained that this modification OF
n g. "a