Transportation; requiring Oklahoma Department of Transportation consult with State Legislature on certain plan priorities; effective date.

2025 Regular Session Introduced by Eddy Dempsey and 1 co-sponsor

North Dakota would allow individuals and corporations to subtract net capital gains from selling gold/silver bullion or legal-tender coins, reducing state taxable income.

Referred to Transportation

Purpose / Intent

HB 1379 would create a state income‑tax subtraction (adjustment) for capital gains (and corresponding capital losses) realized from the sale of gold and silver legal‑tender coins and bullion. The purpose is to exclude gains from such sales from North Dakota taxable income (and to allow the opposite adjustment for losses).

Key provisions

Amends the North Dakota Century Code by adding:

A new subdivision to subsection 1 of section 57‑38‑01.3 (individual income tax adjustments).
A new subdivision to subsection 2 of section 57‑38‑30.3 (corporate income tax adjustments).

Subtraction/adjustment language:

Individual filers: State taxable income would be reduced by the amount of net capital gain (or increased by net capital loss) from the sale of gold and silver legal‑tender coins or bullion, to the extent those amounts are included on the federal return.
Corporations: State taxable income would be reduced by the amount of net capital gain (or increased by net capital loss) from such sales to the extent those gains/losses are included in federal taxable income and are allocated/apportioned to North Dakota.

Definition: “Bullion” is defined as precious metal refined to at least 999 parts per 1,000 (i.e., .999 purity) and in a form whose value depends on metal content rather than form (this distinguishes bullion from numismatic/collector items).

Effective date: For taxable years beginning after December 31, 2024.

Who is affected

Individuals and businesses that realize capital gains or losses from sales of gold and silver legal‑tender coins or bullion.

Taxpayers and tax preparers: changes the state treatment of such capital gains/losses.

North Dakota Office of State Tax Commissioner / Department of Revenue: must implement the new subtraction/adjustment and apply it to individual and corporate returns and apportionments.

State budget: represents a potential revenue reduction (state tax base narrowed for these gains); magnitude depends on the volume and size of such transactions in the state.

Fiscal and administrative impact

Fiscal: The bill reduces taxable income for affected taxpayers and would therefore lower state income tax receipts to an extent equal to the tax on the excluded gains. No fiscal estimate was included in the bill text; actual revenue impact would depend on how many North Dakota taxpayers realize reportable gains/losses on bullion and the size of those gains.

Administrative: Implementation would be straightforward — the change is a subtraction/addition on the state return — but the Department of Revenue would need to update forms, instructions, and guidance (especially for corporate apportionment rules).

Legislative status / timeline

Introduced: November 18, 2024.

Effective for taxable years beginning after Dec. 31, 2024 (if enacted).

Committee activity included proposed amendments clarifying the inclusion of net capital losses and the corporate allocation limitation.

Outcome (as provided): Reached second reading but failed to pass (vote recorded: yeas 16, nays 31). As of that recorded action, the bill did not become law.

Notes / considerations

The statutory definition limits the benefit to high‑purity precious metal in bullion form and legal‑tender coins; collector/numismatic coins whose value depends on rarity/form are likely excluded.

The corporate provision conditions the adjustment on the portion of gain/loss allocated to North Dakota under existing apportionment rules, limiting the state exposure for multistate firms.

Bill