North Dakota sees uptick in oil wells that qualify for tax exemption
North Dakota’s oil boom once filled the state’s coffers, but the landscape is shifting. Nearly half of the state’s oil wells now qualify for a tax exemption designed for low-producing wells, cutting into tax revenue faster than lawmakers anticipated. Even if production picks up through new technology, those wells will keep their exemption under current policy. As legislators review budget forecasts, some are asking hard questions: Is this tax structure sustainable, and what does North Dakota get in return? With billions at stake, the debate is just beginning.
Amy Dalrymple with the North Dakota Monitor has the full story. HB 1483 is tangentially related; it would expand tax credits for certain oil wells.
HB 1483
A BILL for an Act to amend and reenact subsection 4 of section 57-51.1-03 of the North Dakota Century Code, relating to the oil extraction tax rate reduction for oil produced from a new well drilled and completed outside the Bakken and Three Forks formations; and to provide an effective date.
House Sponsors: Headland (R, District 29), D. Anderson (R, District 6), Hagert (R, District 20), Koppelman (R, District 16), J. Olson (R, District 26), Vollmer (R, District 6),
Senate Sponsors: Kessel (R, District 39), Meyer (R, District 18), Rummel (R, District 37), Thomas (R, District 6),
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