The state Senate has approved a slightly retooled version of a major oil tax bill.
As originally introduced, the bill would have lowered the tax on oil from 11-and-a-half percent to 9 and a half percent. It would remove the triggers that reduce the tax, should the price of oil drop below a threshold amount. That’s the version the House passed. The Senate changed it – so the tax reduction triggers would go away, but the tax would be reduced to 10 percent. And there would be a “reverse trigger” – so that if the price of oil goes over $90 a barrel, the tax would be at 11 percent.
"All we need is a good, steady industry out there," said Sen. Dwight Cook (R-Mandan), chairman of the Senate Finance and Taxation Committee. "We don't need the ups and the tremendous downs that we see -- the booms and the busts. We need to keep it stable. And we don't need to milk this cow as if it would never go dry."
"This deal is a fair deal for the state," said Sen. Kelly Armstrong (R-Dickinson). "It stabilizes the tax code, and gives both the state and the industry a predictable tax structure that fosters growth, encourages development, and allows the state to budget on a predictable revenue stream."
The bill was introduced in the House last Friday. And Democrats complained that the bill was being rushed through.
"To make a decision of this magnitude over the course of five working days is legislative malpractice," said Senate Minority Leader Mac Schneider (D-Grand Forks). "How could we possibly shove through this bill without considering the long term effect of a 23 percent cut to the oil extraction tax?"
"It appears that the strategy here is to do this quick, and do it before the public has a chance to really figure out what's going on," said Sen. Jim Dotzenrod (D-Wyndmere).
The bill passed 32 to 15. It now goes back to the House, to see if it concurs with the Senate action.
