18 Mar TAXABLE PAY RECEIVED BY A NORTH DAKOTA TAXPAYER AS A MEMBER OF THE ARMED FORCES OF THE UNITED STATES FOR SERVING IN TITLE 32 ACTIVE GUARD RESERVE, TITLE 32 DUAL-STATUS TECHNICIAN, DUAL-STATUS STATE EMPLOYEE, OR ACTIVE DUTY FOR OPERATIONAL SUPPORT DUTY STATUS CONSTITUTES MILITARY PAY UNDER N.D.C.C. § 57-38-30.3(2)(g) AND IS, THEREFORE, TAX EXEMPT.

March 14, 2024

Request: Does the expansion of state tax exemption in SB 2293, 2023 N.D. Leg. for “military pay” include otherwise taxable compensation received by a member of the military on for Active Guard Reserve (AGR) members, National Guard Dual Status Technicians (DSTs), Dual Status State Employees (DSSEs), and National Guard members on active duty orders for special purposes (ADOS)?

Conclusion: Taxable pay received by a North Dakota taxpayer as a member of the armed forces of the United States for serving in AGR, DST, DSSE, or ADOS duty status constitutes military pay under N.D.C.C. § 57-38-30.3(2)(g) and is, therefore, tax exempt.

You can view this opinion at: 2024-L-01