The Senate has voted to extend the so-called “small trigger” on oil taxes.
The trigger fires when the price of oil falls below $57.50 for a month. It reduces the oil extraction tax from 6.5 percent to 2 percent on new wells.
That trigger law was set to expire at the end of June. The House voted to extend the law until 2017 – but the Senate’s amendment extends it until 2019
"The oil industry is a significant part of North Dakota's economy," said Sen. Brad Bekkedahl (R-Williston). "And the small trigger provides capital to encourage operators to continue producing oil, which creates jobs, generates tax revenues and royalties, and drives the economy."
But Sen. Jim Dotzenrod (D-Wyndmere) says North Dakota still has the “large trigger” – which would eliminate the oil extraction tax on new wells drilled after five months of oil prices under $55.
"That's a pretty substantial and large incentive and tax reduction," said Dotzenrod. "There's nothing like it anywhere else in the United States."
The Senate passed the measure 35 to 12. It now goes back to the House to see if it agrees with the Senate’s changes.
