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On November 24, 2025, North Dakota lawmakers announced a new taxation plan designed to generate additional revenue for the state. The plan, which was unveiled during a press conference at the State Capitol, includes several key changes to the state's tax code that are expected to impact individuals and businesses across the state.One of the most significant changes in the new taxation plan is an increase in the state's sales tax rate. Under the plan, the sales tax rate will be raised from 5% to 6.5%, marking the first increase in the state's sales tax rate in over a decade. Lawmakers explained that the increase is necessary to help offset budget deficits and fund essential state services.In addition to the sales tax rate increase, the taxation plan also includes adjustments to the state's individual income tax brackets. The plan calls for lower-income individuals to see a slight decrease in their tax rates, while higher-income individuals will face slightly higher tax rates. Lawmakers stated that this change is intended to make the tax code more progressive and ensure that wealthier individuals pay their fair share.Businesses in North Dakota will also see changes under the new taxation plan. One of the key provisions is the implementation of a corporate minimum tax, which will require businesses with annual revenues over $1 million to pay a minimum tax based on their total revenue. Lawmakers believe that this provision will help ensure that large corporations pay their fair share of taxes in the state.Overall, state officials estimate that the new taxation plan will generate an additional $100 million in revenue for the state each year. This revenue will be used to fund essential services such as education, healthcare, and infrastructure projects.Reaction to the new taxation plan has been mixed. Supporters argue that the plan is necessary to address budget shortfalls and provide funding for important state programs. However, opponents of the plan have criticized the tax rate increases, arguing that they will place an undue burden on North Dakota residents and businesses.The new taxation plan is expected to go into effect on January 1, 2026, pending approval from the state legislature. Lawmakers have expressed confidence that the plan will help secure North Dakota's financial stability and ensure long-term prosperity for the state.