ND House gave the final approval to HB 1476 relating to the oil extraction rate. The bill was introduced a week ago, had hearings in both the House and Senate Tax committees this week, was voted on in the Senate Thursday and House Friday.
The bill lowers the oil extraction tax from 6.5% to 5% on 1/1/16 resulting in an oil tax rate of 10%.
If the trigger is hit and goes into effect the excemptions will expire 12/1/15. It eliminates current triggers but establishes new triggers. If oil prices are above $90 for 3 months tax rate will move to 11%; if oil prices are below $90 for 3 months tax rate wil be 10%.
The bill now goes to the Governor.