Oil and gas gross production tax allocations to counties.
Impact
The impact of SB2162 on state laws is significant, as it enforces a clear linkage between county revenue generation through tax levies and the distribution of state tax revenue from oil and gas production. This could incentivize counties to maintain or increase their tax levies for transportation and infrastructure needs. The result could lead to more equitable funding for counties that actively manage their local tax frameworks, which is likely to benefit infrastructure development and maintenance crucial for the oil and gas sector.
Summary
Senate Bill 2162 is an act aimed at amending the allocations of oil and gas gross production taxes to counties in North Dakota. The bill modifies existing provisions in the North Dakota Century Code related to the distribution of tax revenues from oil and gas production. Specifically, it states that a portion of the revenue must be directed to county general funds, but with a stipulation that if a county does not levy a minimum of ten mills for specific road and bridge funds, the revenue will revert to the state general fund. This condition emphasizes the importance of local taxation efforts in receiving state-derived tax revenues.
Sentiment
The sentiment surrounding SB2162 appears to be largely positive among legislators, as indicated by the robust support it received during voting—86 yeas to 7 nays in the House. Supporters argue that the bill fosters a financial tie that ensures counties contribute to their own development, thereby making them eligible for state support in an industry-critical area such as oil and gas. On the other hand, the stipulation could raise concerns among those who feel it may place further fiscal pressure on counties struggling to meet levy requirements.
Contention
Notable points of contention arise from the balance of requiring local funding for state support. Some legislators may view the amendment as a necessary accountability measure, while others may see it as punitive towards counties that cannot meet the threshold due to various economic conditions. This polarization reflects a broader debate within state legislative discussions about local autonomy versus ensuring that counties take responsibility for their financial and infrastructural obligations, which is paramount in a state where oil and gas extraction is a central economic activity.
Oil and gas gross production tax allocations and the state share of oil and gas tax allocations; to provide for a legislative management report; to provide an exemption; and to provide an effective date.
Allocations to townships from the township highway aid fund and an allocation of motor vehicle excise tax collections to the township highway aid fund and the county highway aid fund; and to provide an effective date.
The flexible transportation fund, motor vehicle excise tax allocations, an appropriation for township roadway funding, and the appropriation of bond proceeds for transportation projects; to provide an exemption; to provide a report; to provide for a legislative management study; to provide an effective date; and to declare an emergency.
A sales tax exemption for a fertilizer plant and allocation of sales tax revenue; to provide a continuing appropriation; to provide for a legislative management report; and to provide an expiration date.
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.
Communication of property tax levies with the public and financial reporting to the state auditor; to provide for the tax commissioner to study property tax transparency; and to provide for a legislative management report.
Legacy fund definitions, a legacy earnings fund, the legacy earnings highway distribution fund, and legacy earnings township highway aid fund; to provide for a legislative management report; to provide for application; to provide an effective date; and to provide an exemption.