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Changing of Oil Taxes Gets the Go Ahead

North Dakota Senate lawmakers voted 32-15 Thursday night in favor of lowering the oil extraction tax and removing price-based tax breaks.

The bill heads back to the House where members approved the original measure Monday after it was introduced last Friday.

The bill eliminates the price-based tax breaks known as triggers started in early December.

House Bill 1476, lowers the oil extraction tax from 6.5 percent to 5 percent. It does not change the 5 percent gross production tax, decreasing North Dakota’s overall tax rate on oil by 1.5 percent.

It also has a “reverse trigger” that would boost the extraction tax to 6 percent, for an overall tax rate of 11 percent, if oil prices average above $90 a barrel for three consecutive months.

Senate Majority Leader Rich Wardner, R-Dickinson, said the bill provides stability for both the industry and state tax revenues, according to The Forum.

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