House Kills Oil Tax Bill - KXNet.com - Bismarck/Minot/Williston/Dickinson-KXNEWS,ND

House Kills Oil Tax Bill

Posted:
Bismarck, ND -

The North Dakota House has killed a bill aimed at restructuring oil taxes.

Representatives defeated the bill 71-21.

The measure has been one of the most contentious of the legislative session.

It would have lowered tax rates for oil companies in exchange for closing the so-called stripper well loophole.

Lower producing wells are taxed at a lower rate, the "loophole" is that any other wells on that property share the reduced tax no matter how much they produce.

The state Tax Department says the loophole is costing the state $60 million a year in lost revenues.

Oil companies viewed the proposal as a tax increase.

To offset that, the bill sought to reduce the oil extraction tax by a half percent on new wells.

Still, many lawmakers say the oil industry doesn't need an incentive to drill in the Bakken.

Fargo Representative Scot Kelsh says, "extraction taxes stood the test of time in the last 32 years in North Dakota. It was the tax rate when the Bakken boom began and the industry is flourishing under that current tax rate. As the industry grows the need for infrastructure continues to grow."

"This does fix the stripper well situation, that is very important as we go forward. We can't go forward without negotiating something else with that," says Representative Jon Nelson of Rugby.

Representative Dave Drovdal of Arnegard says, "the oil industry has provided us with opportunities, a fair and balanced tax rate they can understand is good."

Most of the debate centered around giving the tribes more of the tax revenues.

The proposal increased their share from 20% to 50%.

However, many lawmakers were concerned that the tribes were not required to use the revenues to improve infrastructure.

Representative Mark Dosch of Bismarck says, "they are going to benefit hundreds of millions, I'm fine with that, but the Tribal governments are unwilling to commit to us that they will use this money to improve life for all those on the Reservation. That is a shame. For that reason, I will not support this legislation."

Attempts to close the stripper well exemption have failed in the past three legislative sessions

  • Bismarck/Mandan NewsMore>>

  • Boy Scouts Clean Construction Sites for Community Service

    Boy Scouts Clean Construction Sites for Community Service

    Friday, April 18 2014 8:21 PM EDT2014-04-19 00:21:26 GMT
    Boy Scouts know when they sign up they'll be doing some community service. So, when a couple of crews signed up to collect trash at some local construction sites, it was expected. What they didn't expect,
    Ethan Porter and Scout crews 123 from Bismarck and 54 from Mandan brought about 30 people to clean up garbage near some construction sites.
  • Killdeer Residents Speak About Oil Boom Effects

    Killdeer Residents Speak About Oil Boom Effects

    Friday, April 18 2014 7:08 PM EDT2014-04-18 23:08:27 GMT
    A day after the Dyad shutdown, Killdeer residents share the impact of the oil boom on their community. The oil business brings all types to this once quiet town. Everything is affected... from restaurants
    A day after the Dyad shutdown, Killdeer residents share the impact of the oil boom on their community. The oil business brings all types to this once quiet town. Everything is affected... from restaurants
  • Dyad Environmental Statement on Health Dept. Order

    Dyad Environmental Statement on Health Dept. Order

    Friday, April 18 2014 6:44 PM EDT2014-04-18 22:44:51 GMT
    "Dyad Environmental is a new company, who began processing TENORM less than 30 days after posting a $1.25M bond, and spending two years obtaining appropriate permits and licenses.
    "Dyad Environmental is a new company, who began processing TENORM less than 30 days after posting a $1.25M bond, and spending two years obtaining appropriate permits and licenses.
  • PoliticalMore>>

  • Asia seeks Obama's assurance in territorial spats

    Asia seeks Obama's assurance in territorial spats

    Saturday, April 19 2014 7:51 AM EDT2014-04-19 11:51:55 GMT
    As President Barack Obama travels through Asia this coming week, he will find a region that's warily watching the crisis in Ukraine through the prism of its own territorial tensions with China.
    As President Barack Obama travels through Asia this coming week, he will find a region that's warily watching the crisis in Ukraine through the prism of its own territorial tensions with China.
  • Obama: Easter a time to reflect on hope, renewal

    Obama: Easter a time to reflect on hope, renewal

    Saturday, April 19 2014 6:11 AM EDT2014-04-19 10:11:51 GMT
    President Barack Obama is encouraging Americans to draw strength and inspiration from the Easter and Passover holidays.
    President Barack Obama is encouraging Americans to draw strength and inspiration from the Easter and Passover holidays.
  • Shedding light on Clinton's health overhaul flop

    Shedding light on Clinton's health overhaul flop

    Saturday, April 19 2014 4:51 AM EDT2014-04-19 08:51:44 GMT
    Thousands of pages of documents from President Bill Clinton's White House affirm a longtime adage: The more things change, the more they stay the same.
    Thousands of pages of documents from President Bill Clinton's White House affirm a longtime adage: The more things change, the more they stay the same.
Quick Clicks
Closings/Delays
View list
Calendar
What's happening?
Lottery Results
Feeling lucky?
Viewer Photos
Submit yours!
Road Report
Current conditions
TV Listings
See what's on
Gas Prices
Check near you
E-Mail Newsletter
Signup now

Most Popular

Stories
Videos
loading...
Powered by WorldNow
General information or questions:
kxinfo@kxnet.com

News:
Bismarck:
Phone: 701-223-9197
News Fax: 701-223-1985

News:
Minot:
Phone: 701-852-2104
News Fax: 701-838-1050
All content © Copyright 2000 - 2014 WorldNow and KXNET. All Rights Reserved.
For more information on this site, please read our Privacy Policy and Terms of Service.