The Senate has passed a major change to North Dakota’s oil taxes.
The measure tightens some of the oil tax looholes, uncouples the tax from oil prices, changes the definitions for so called “stripper wells” – and lower the tax rates on new wells drilled in 2017 and after from 11-and-a-half percent to 9 and a half percent.
The sponsor -- Sen. Dwight Cook (R-Mandan) -- says unlike what the opponents believe, it is not a decrease in the revenues North Dakota will be collecting from oil taxes.
"This is sound tax policy," said Cook. "That revenue is dear to the state of North Dakota. "
Cook says he's afraid that without changes, oil companies may reduce their activity in the oil patch.
Opponents say this will change the intent of Measure Six, passed by a vote of the people in 1980, which set the current oil tax rates.
"The people of our state put this rate in place," said Sen. Tim Mathern (D-Fargo). "The people of our state want it to stay in place."
The bill passed 34-to-13 – and will now go to the House.
