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Senate leaders say they will push for more oil tax revenue for oil patch counties

Senate leaders say they will be working hard over the next several weeks to get the oil tax distribution formula closer to what western Legislators and Gov. Jack Dalrymple had proposed.

The oil extraction tax is currently allocated so that 25 percent of the collections go back to the oil impacted counties, while 75 percent goes to the state. The Governor’s budget proposed a 60-40 split – with local governments getting 60 percent. The House decided the percentage should be 30-70, with the 30 percent share going to local government.

"They tell me, out in the oil patch -- I'm talking about county commissioners and city commissioners and other leaders out there -- that if we could get 60-40 for three biennia, we would be in good shape," said Senate Majority Leader Rich Wardner (R-Dickinson). "Then we could ratchet it down. It's a six year period, and that's what it's going to take to get some of these impacts taken care of."

"That's what's going to help us not have to du 'surge' funding once more next session, and provide a bunch of catch-up money," said Senate Minority Leader Mac Scheider (D-Grand Forks). "We've got to learn from past mistakes, and that means providing a fair share of the tax."

Schneider and Wardner say they expect the oil tax formula bill will be one of the last bills in conference committee as the session wraps up.

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