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Oil tax allocation bill 'premature,' says House

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The House has rejected a bill dealing with oil tax distribution to local governments in the oil patch, saying it’s premature to approve it.

Opponents say the issue will come back in the second half of the session – after the new March revenue forecast. That forecast is to be released March 9th. Rep. Jason Dockter (R-Bismarck) said that forecast will allow big decisions like this to go forward.

"We're in the fourth inning of the game. the bullpen is not warmed up, and we're chewing sunflower seeds," Dockter told the House. "We still have plenty of time to deal with this in the second half of the session."

A number of western North Dakota lawmakers spoke for the measure. Rep. Gary Sukut (R-Williswton) told the House local governments are on the hook for bond payments for some of the infrastructure improvements.

"we are looking for enough gross production tax revenue to meet our cities, counties and schools' current bond obligations, which exist because of the industry-related growth," Sukut said. "The revenues were there to help us obtain the bonding, and they need to be there to help us retire the debt."

House Majority Leader Al Carlson said the money will be in another bill – after crossover.

The bill failed 57 to 34.

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