The Senate has passed its version of a bill that would change how the oil production tax is distributed.
Right now, the state receives 75 percent of that money, with local governments getting 25 percent. The House made it a 70-30 split. The Senate agreed with that percentage, but made some changes in how the 30 percent would be divvied-up.
Senate Minority Leader Mac Schneider (D-Grand Forks) offered a floor amendment that he called “contingency budgeting.” It would have raised that local share to 40 percent, if oil production exceeded one-point-two million barrels per day – and that would take effect in 2016.
"Instead of surging once every two years to catch up with the needs that have accumulated, this contingency amendment really does coalesce around that bi-partisan principle that the best way to address needs of oil impacted communities going forward is to increase the share of the production tax that those communities receive to address the needs in real time," said Schneider.
That proposal was defeated on a 15 to 32 vote. The Senate then unanimously passed the bill. It now goes back to the House for further action. It will likely end up in a conference committee.
