Oil tax trigger bill passes House
BISMARCK, N.D. (KFYR) - The oil and gas industry might soon get a tax cut.
That’s because the House of Representatives passed HB 1286, which would do away with a law that increases the oil production and extraction tax rate if the price of oil remains above $95 per barrel for three consecutive months. Those in favor say this could encourage investment in the state’s oil and gas industry in a competitive marketplace.
“North Dakota has some of the highest extraction tax rates, greater than Texas and New Mexico, our two largest competitors for energy investments. Oil and gas provide North Dakota with a lot of revenue. Let’s not disincentivize potential future oil and gas investments in North Dakota with an unfair tax,” said Representative Jeremy Olson, R-Arnegard.
Oil tax revenue is projected to be the second highest in state history by the end of this two-year cycle. The bill passed by a vote of 72-21. Next, it goes to the Senate.
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