BISMARCK, N.D. (AP) — North Dakota’s oil industry is proposing a flat tax on crude production in exchange for giving up some big incentives that could cost the state millions of dollars in lost revenue.
North Dakota Petroleum Council President Ron Ness told a House committee on Monday that the petroleum industry wants a flat tax on oil production at 9 percent or lower.READ MORE: Vikings’ Anthony Barr Nominated For Walter Payton NFL Man Of The Year: 'The Work Is Far From Over'
A state law forgives a 6.5 percent extraction tax if the five-month average price of oil slips below a “trigger” price. That trigger is expected to kick in June 1.READ MORE: Home For The Holidays: WCCO Partners With MACV To Raise Awareness, Support For Veteran Homelessness
Republicans want to lower the extraction tax permanently to 4.5 percent if the trigger kicks in, instead of giving companies the tax break.
Democrats and leaders from the oil-rich Fort Berthold Reservation are opposing the bill.MORE NEWS: COVID In Minnesota: State Reports 98% Occupancy Rate In Hospital ICUs
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