The House has overwhelmingly passed a bill that changes how oil taxes are split with the Three Affiliated Tribes at Fort Berthold.
Current state law says the tax is spilt 50-50. But the bill – which was the result of an interim study, chaired by Gov. Doug Burgum – would change that – so that on trust lands, the Tribe would keep 80 percent of oil taxes collected there, and on fee lands, the state would get 80 percent.
Supporters said this gives the oil industry some certainty in terms of taxation policy – and they believe it will result in more activity on the reservation.
"It's time to let the oil industry get to work investing in our state, and growing oil production, knowing they will have a stable oil tax structure to work with," said Rep. Craig Headland (R-Montpelier). the chairman of the House Finance and Taxation Committee.
Rep. Rick Becker (R-Bismarck) told the House he didn’t object to the split – but he had a problem with the order in how the agreement was reached. He said the agreement had already been negotiated before the Legislature weighed in.
"What we're doing is abrogating our responsibility," Becker argued. "Out of convenience, we're saying, 'Better than that, Mr. Executive Branch, you don't need our approval.'"
Becker said it appears the Legislature doesn't want to be a part of negotiations.
"The Legislature has done this many times over the years," Becker said. "And it always comes back to bite them in the butt."
The bill passed 84 to 8.
