ND Senate passes simplification of oil extraction tax

Bismarck, ND – The North Dakota Senate spends nearly two hours debating whether or not to restructure the state’s oil tax.

After lengthy debate, the bill passed the Senate 34-13.

Democrats say the measure could cost the state billions in lost revenue over time.

Republicans say change will bring certainty to the tax code, something oil companies desire.

The measure cuts the exemption on stripper wells, that is costing the state $50 million a year.

In exchange, the measure lowers the tax on oil taken out of the ground.

Rob Port is the editor of SayAnythingBlog.com. In 2011 he was a finalist for the Watch Dog of the Year from the Sam Adams Alliance and winner of the Americans For Prosperity Award for Online Excellence. In 2013 the Washington Post named SAB one of the nation's top state-based political blogs, and named Rob one of the state's best political reporters. He writes a weekly column for several North Dakota newspapers, and also serves as a policy fellow for the North Dakota Policy Council.

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  • WOOF

    Hope the people of North Dakota are getting kissed,
    because with the “certainty to the tax code”,
    they’re certainly are getting FKed.

    • Snarkie

      #YOLO

  • http://www.facebook.com/trevorwdahl Trevor Dahl

    If an oil extraction tax gets signed into law, it will be interesting to see how future revenue compares with today’s numbers. Given the Laffer Curve, it’s theoretically possible that revenue may hold steady or even increase with the reduction in taxes. Oil companies have investment budgets like everyone else, decreasing their tax burden will free up more capital for more drilling, i.e. taxable events.

  • JoeMN

    Democrats say the measure could cost the state billions in lost revenue over time.
    This is under the same Marxist assumption that all revenue generated in the state is ultimately property of the state

  • FrackinNoDak

    This is just ridiculous. Every oil company doing business in ND knew the tax structure prior to coming here. This is nothing more than the legislature kissing the butts of the oil companies. It seems obvious that the oil companies own the ND politicians.

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