Legislature makes a change in how oil taxes are divvied-up
A bill to change how oil taxes are divvied up is on its way to Governor Dalrymple.
Currently, the state receives 75 percent of oil tax revenue, and local governments get 25 percent. Dalrymple and some western lawmakers pushed for a bill to keep 60 percent of the money local, with 40 percent to the state. But because of the drop in oil prices – and in oil tax collections – the Legislature made it a 70-30 split, with the state receiving the 70 percent.
"Your conference committee felt pretty good that we have a good bill here," said Sen. Ronald Sorvaag (R-Fargo), one of the conference committee members. "We're going to generate some extra money out to the oil producing counties, and we're going to do some good things throughout the state. At this time, it's a fair formula."
The bill also mandates a study of how the oil tax is allocated.