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North Dakota's oil tax will likely be back to 10 percent, effective Nov. 1

Good_Quality Brian Kroshus PSC Public Service Commission.png

It appears North Dakota’s oil tax will go back to 10 percent on November first.

The tax went to 11 percent in June, because the price of oil went above a “trigger price” of $94.69 per barrel for three consecutive months – March, April and May. The price was above $100 per barrel.

But now, the price has dropped.

"Oil is in that $86 to $87 range," said North Dakota Tax Commissioner Brian Kroshus. "Through October, it's averaging close to $87, through the first 19 days."

Kroshus said for that trigger to not go off, oil would have to average $107 per barrel for the last days of the month of October. He said while that’s unlikely, world events could change that equation.

Kroshus said the extra one percent meant $120 million in additional revenue through October.

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