North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1483

Introduced

1/20/25

Refer

1/20/25

Report Pass

2/5/25

Engrossed

2/10/25

Refer

2/13/25

Report Pass

3/26/25

Enrolled

4/9/25

Passed

4/18/25

Caption

The oil extraction tax rate reduction for oil produced from a new well drilled and completed outside the Bakken and Three Forks formations; to provide for a legislative management study; and to provide an effective date.

Impact

The impact of HB 1483 on state laws is notably significant as it introduces differentiated tax treatment based on geography and production timelines. Such modifications not only aim to stimulate activity in underdeveloped oilfields but also position North Dakota more competitively in the oil market. Additionally, the legislative management study proposed in the bill is set to examine oil extraction tax exemptions, particularly concerning stripper wells, which are characterized by low production rates. This assessment is crucial as it will offer insights into the overall effectiveness and economic implications of existing tax policies.

Summary

House Bill 1483 is proposed to amend the North Dakota Century Code regarding the oil extraction tax rate. The bill specifically provides a tax rate reduction for oil produced from newly drilled wells located outside the Bakken and Three Forks formations, which are significant oil-producing regions in North Dakota. Under this legislation, the first 75,000 barrels of oil produced within the first 18 months after completion of such wells would be taxed at a reduced rate of 2%. This initiative aims to encourage oil production in areas that are not part of the existing high-production tiers, thereby promoting economic development in lesser-known regions.

Sentiment

The sentiment around HB 1483 appears to be largely positive among supporters who see it as a means to boost local economies and increase oil-related revenues. The bill received substantial bipartisan support during voting, with 80 in favor and only 8 against in the House, and 42 in favor and 3 against in the Senate. However, while there is broad support, there may also be some underlying concerns about the long-term fiscal impacts of tax reductions and whether these changes ultimately serve the best interests of the state’s oil sector and local communities.

Contention

Notable points of contention include the perception of fairness regarding tax benefits for certain regions while potentially neglecting others. The parameters set forth in the bill about where the reduced tax rate applies, such as the distance from established fields and the exclusion of production on reservations unless tribes opt in, could lead to discussions about equitable treatment across the state. Critics may argue that such provisions could yield unequal economic opportunities between communities, raising discussions about local needs versus broader state interests.

Latest HB1483 Activity

Companion Bills

No companion bills found.

Previously Filed As

ND HB1286

The removal of triggered oil extraction tax rate changes for wells located outside the exterior boundaries of a reservation; and to provide an effective date.

ND HB1427

The definition and certification of a restimulation well; and to provide an effective date.

ND HB1158

The homestead tax credit and income tax rates for individuals, estates, and trusts; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an effective date; and to provide an expiration date.

ND SB2012

The autism voucher; to provide a statement of legislative intent; to provide for a legislative management study; to provide for a report; to provide an effective date; and to declare an emergency.

ND HB1014

Fuel production facility loan guarantee reserve funding, the housing incentive fund, the powers of the North Dakota pipeline authority, definitions for the clean sustainable energy authority, a clean sustainable energy authority line of credit, and an appropriation from the state fiscal recovery fund; to provide a contingent appropriation; to provide for a transfer; to provide an exemption; to provide for a study; to provide for a report; to provide a statement of legislative intent; to provide an effective date; and to declare an emergency.

ND SB2015

A transfer of Bank of North Dakota profits to a water infrastructure revolving loan fund; to provide for a transfer; to provide an exemption; to provide for a legislative management study; to provide a report; to provide a penalty; to provide for application; to provide a retroactive effective date; to provide a contingent effective date; to provide an effective date; and to declare an emergency.

ND HB1541

Budget section approval limits for the flexible transportation fund; to provide for a legislative management study; to provide for a legislative management report; to provide for retroactive application; and to provide an effective date.

ND SB2058

The jurisdiction of commission and adding wellhead and equipment located at or on oil or gas well sites.

ND HB1040

Public employees retirement system retirement plan contribution rates upon reaching full funding and balance transfer when opting to participate in the defined contribution plan; to provide for a legislative management study; to provide for a transfer; to provide for application; and to provide an effective date.

ND HB1455

Evaluation of economic development tax incentives and a sales and use tax exemption for raw materials, single-use product contact systems, and reagents used for biologic manufacturing; to provide for a legislative management report; to provide an effective date; and to provide an expiration date.

Similar Bills

No similar bills found.