North Dakota's oil tax rate may drop
North Dakota’s oil tax will likely go back to 10 percent later this year.
That from state Tax Commissioner Brian Kroshus, who said that’s because of the price of oil.
Earlier this year, the tax went from 10 percent to 11 percent, because the price of oil was over a “trigger” price for a three month period. Specifically, the oil extraction tax went from 5 percent to 6 percent, and the oil production tax remained at five percent.
The trigger is $94.69 per barrel. Kroshus said the price was over that trigger for March, April and May. And he said that was true for June and July as well.
However, Kroshus told the Legislature’s interim Legacy Fund Earnings Committee the price fell below that trigger level in August, and so far in September, it remains below the trigger.
"We'll have to see what happens with October pricing," Krosus said. "If October pricing is also below the trigger price, then the extraction tax will move back to five percent, effective November first."
Kroshus told the Committee the increased tax brought in an extra $30 million per month.