Bill to Cut Oil Taxes | Video

Jennifer Joas | 2/5/2013

A bill to cut oil taxes in 2017 is getting mixed reviews. The Senate Finance and Taxation Committee heard a bill to lower the oil extraction tax by two percent and also remove the ability for oil wells to qualify for tax exemptions in the Bakken and Three Forks formation. Several entities representing education, state employment and farmers have concerns.

The Public Employees Association is concerned with retaining workers in western North Dakota, and don`t want to see a tax break when they can`t adequately fund employment positions.

"Our concern is, if you`ve got an extra $600 million sitting around, why aren`t we paying people to fill those positions? Why aren`t we making those positions more competitive?" said Stuart Savelkoul with the ND Public Employees Association

Proponents for the bill say the tax cut would decrease the state`s revenue, but the state will get added revenue through abolishing the stripper well exemption.

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