The allocation of the state share of oil and gas taxes.
Impact
The impact of SB2367 touches on the budgeting framework for state finances, particularly how oil and gas revenues are utilized. The bill's structure aims to ensure that revenue distributions support both development and stabilization efforts across North Dakota. By delineating specific funds for infrastructure in non-oil-producing areas, SB2367 seeks to ensure equitable distribution of resources throughout the state, potentially addressing the disparities between oil-rich and less affluent regions.
Summary
Senate Bill 2367 proposes an amendment to the allocation of the state's share of oil and gas taxes under section 57-51.1-07.5 of the North Dakota Century Code. The bill outlines a structured format for depositing revenues generated from oil and gas taxation into various state funds. This includes allocations towards the state general fund, tax relief social services fund, budget stabilization fund, and several funds dedicated to infrastructure development, especially in non-oil-producing counties.
Sentiment
Overall, the sentiment regarding SB2367 appears to be supportive, as signified by the overwhelming voting outcomes from both the Senate (45-0) and the House (83-9). The bipartisan support reflects a shared acknowledgment of the importance of prudent and equitable financial management of oil resource revenues within the state. However, it might be worthwhile to consider potential concerns about how these allocations will influence local governance and funding efficacy in various communities.
Contention
Notable points of contention surrounding the bill include debates about the sufficiency of funding for infrastructure needs in non-oil-producing counties. Some legislators raised concerns regarding whether the proposed allocations would adequately address infrastructure deficits that these regions face. While SB2367 seeks to balance the distribution of tax revenues, there remains apprehension about whether it will genuinely translate into meaningful improvements in public services and local infrastructure investment.
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.
Determination of state school aid, information displayed on property tax statements, transfer of legacy fund earnings, and deposit of oil and gas tax revenues; and to provide an effective date.
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.
County achievement days; to provide for a transfer; to authorize a line of credit; to provide an exemption; to provide for a report; and to declare an emergency.
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.
The temporary exemption for oil and gas wells employing a system to avoid flaring, an exemption from gross production tax for gas produced from certain enhanced oil recovery projects, and the definition of development incentive well; to provide an effective date; and to provide an expiration 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.
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.