North Dakota 2025-2026 Regular Session

North Dakota House Bill HB1279 Compare Versions

Version 1 (Old)

Version 2 (New)

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1		-	25.0895.~~02000~~
	1	+	25.0895.01000
2	2		Sixty-ninth
3	3		Legislative Assembly
4	4		of North Dakota
5	5		Introduced by
6	6		Representatives Novak, Berg, Hagert, Headland, J. Olson, S. Olson, Porter, Tveit
7	7		Senators Boehm, Patten, Thomas
8		-	A BILL for an Act to amend and reenact sections 57-60-02, 57-60-02.~~1, 57-60-02.~~2, 57-60-14,
9		-	~~and 57-61-01~~ of the North Dakota Century Code, relating to ~~a partial~~ exemption from the coal
10		-	~~conversion facilities~~ tax and the imposition of a lignite research tax, allocation of the coal
11		-	~~conversion facilities~~ privilege tax and the lignite research tax, and an exemption from the coal
12		-	~~severance tax; to~~ provide an effective date; and to provide an expiration date.
	8	+	A BILL for an Act to amend and reenact sections 57-60-02, 57-60-02.2, 57-60-14, and 57-61-01
	9	+	of the North Dakota Century Code, relating to an exemption from the coal conversion facilities
	10	+	tax and the imposition of a lignite research tax, allocation of the coal conversion facilities
	11	+	privilege tax and the lignite research tax, and an exemption from the coal severance tax; to
	12	+	provide an effective date; and to provide an expiration date.
13	13		BE IT ENACTED BY THE LEGISLATIVE ASSEMBLY OF NORTH DAKOTA:
14	14		SECTION 1. AMENDMENT. Section 57-60-02 of the North Dakota Century Code is
15	15		amended and reenacted as follows:
16		-	57-60-02. Imposition of taxes. (Effective throughafter June 30, 2026, and through
17		-	June 30, 2029)
	16	+	57-60-02. Imposition of taxes. (Effective through June 30, 20262036)
18	17		There is hereby imposed upon the operator of each coal conversion facility a tax paid
19	18		monthly for the privilege of producing products of such coal conversion facility. The rate of the
20	19		tax must be computed as follows:
21	20		1.For all coal conversion facilities, except as otherwise provided in this section, the tax is
22	21		measured by the gross receipts derived from the facility for the preceding month and is
23	22		in the amount of two percent of its gross receipts. Gross receipts derived from the sale
24	23		of a capital asset are not subject to the tax imposed by this subsection.
25	24		2.For electrical generating plants, the tax is at a rate of sixty-five one-hundredths of
26	25		one mill times sixty percent of the installed capacity of each unit times the number of
27	26		hours in the taxable period. All electrical energy generating units that begin
28	27		construction or complete repowering are exempt from eighty-five percent of the tax
29	28		imposed by this subsection for five years from the date of the first taxable production
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	29	+	or from the date of the first taxable production after repowering from the unit. If a unit
	30	+	is incapable of generating electricity for eighteen consecutive months, the tax on that
	31	+	unit for taxable periods beginning after the eighteenth month must be reduced by the
	32	+	Page No. 1 25.0895.01000
31	33		HOUSE BILL NO. 1279
32		-	HOUSE BILL NO. 1279
33		-	with Senate Amendments
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56	59		Legislative Assembly
57		-	or from the date of the first taxable production after repowering from the unit. If a unit
58		-	is incapable of generating electricity for eighteen consecutive months, the tax on that
59		-	unit for taxable periods beginning after the eighteenth month must be reduced by the
60	60		ratio that the cost of repair of the unit bears to the original cost of the unit. This
61	61		reduced rate remains in effect until the unit is capable of generating electricity.
62	62		3.For electrical generating plants, in addition to the tax imposed by subsection 2, there is
63	63		a tax at the rate of twenty-five one-hundredths of one mill on each kilowatt hour of
64	64		electricity produced for the purpose of sale. For all electrical generating plants that
65	65		begin construction or complete repowering, the production from the plants is exempt
66	66		from the tax imposed by this subsection for five years from the date of the first taxable
67	67		production or from the date of the first taxable production after repowering from the
68	68		plant.
69	69		4.For coal gasification plants, the tax is the greater of either the amount provided in
70	70		subsection 1 or thirteen and one-half cents on each one thousand cubic feet
71	71		[28316.85 liters] of synthetic natural gas produced for the purpose of sale but not
72	72		including any amount of synthetic natural gas in excess of one hundred ten million
73	73		cubic feet per day.
74	74		5.For all coal conversion facilities, other than electrical generating plants, the production
75	75		from the facilities is exempt from eighty-five percent of the tax imposed by this section
76	76		for a period of five years from the date of first taxable production from the facility. The
77	77		operator of each facility applying for exemption under this subsection shall certify to
78	78		the tax commissioner the date of first taxable production of the facility.
79	79		6.For coal beneficiation plants, the tax is twenty cents on each ton of two thousand
80	80		pounds [907.18 kilograms] of beneficiated coal produced for the purpose of sale, or
81	81		one and one-quarter percent of the gross receipts derived from such facility for the
82	82		preceding month, whichever amount is greater. Any amount of beneficiated coal
83	83		produced in excess of eighty percent of the design capacity of the coal beneficiation
84	84		plant or produced for use within a coal conversion facility is exempt from such tax.
85	85		7.With the exception of the tax imposed under subsection 3, the board of county
86	86		commissioners, by resolution, may grant the operator of a plant or facility located
87	87		within the county a partial or complete exemption from up to fifteen percent of the tax
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	88	+	imposed under this section for a period not to extend past June 30, 20262036. If a
	89	+	board of county commissioners grants a partial or complete exemption for a specific
	90	+	plant or facility under this subsection, subsection 2 of section 57-60-14 does not apply.
	91	+	Page No. 2 25.0895.01000
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120	123		Legislative Assembly
121		-	imposed under this section for a period not to extend past June 30, 20262029. If a
122		-	board of county commissioners grants a partial or complete exemption for a specific
123		-	plant or facility under this subsection, subsection 2 of section 57-60-14 does not apply.
124	124		Notwithstanding section 57-60-14, any tax collected from a plant or facility subject to
125	125		the exemption provided by this subsection must be allocated entirely to the county for
126	126		allocation as provided in section 57-60-15.
127		-	Imposition of taxes. (Effective after June 30, ~~20262029~~) There is hereby imposed upon
	127	+	Imposition of taxes. (Effective after June 30, 20262036) There is hereby imposed upon
128	128		the operator of each coal conversion facility a tax paid monthly for the privilege of producing
129	129		products of such coal conversion facility. The rate of the tax must be computed as follows:
130	130		1.For all coal conversion facilities, except as otherwise provided in this section, the tax is
131	131		measured by the gross receipts derived from the facility for the preceding month and is
132	132		in the amount of two percent of its gross receipts. Gross receipts derived from the sale
133	133		of a capital asset are not subject to the tax imposed by this subsection.
134	134		2.For electrical generating plants, the tax is at a rate of sixty-five one-hundredths of one
135	135		mill times sixty percent of the installed capacity of each unit times the number of hours
136	136		in the taxable period. All electrical energy generating units that begin construction or
137	137		complete repowering are exempt from eighty-five percent of the tax imposed by this
138	138		subsection for five years from the date of the first taxable production or from the date
139	139		of the first taxable production after repowering from the unit. The board of county
140	140		commissioners may, by resolution, grant to the operator of an electrical generating
141	141		plant located within the county partial or complete exemption from the remaining
142	142		fifteen percent of the tax imposed by this subsection for a period not exceeding five
143	143		years from the date of the first taxable production or from the date of the first taxable
144	144		production after repowering from the unit. If a board of county commissioners grants a
145	145		partial or complete exemption for a specific coal conversion facility under this
146	146		subsection, the provisions of subsection 2 of section 57-60-14 do not apply as that
147	147		subsection relates to revenue from the specific unit of the coal conversion facility for
148	148		which the partial or complete exemption has been granted. Notwithstanding section
149	149		57-60-14, any tax collected from a unit subject to the exemption provided by this
150	150		subsection must be allocated entirely to the county for allocation as provided in section
151	151		57-60-15. If a unit is incapable of generating electricity for eighteen consecutive
152		-	Page No. 3 25.0895.02000
	152	+	months, the tax on that unit for taxable periods beginning after the eighteenth month
	153	+	must be reduced by the ratio that the cost of repair of the unit bears to the original cost
	154	+	Page No. 3 25.0895.01000
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	184	+	30 Sixty-ninth
	185	+	Legislative Assembly
	186	+	of the unit. This reduced rate remains in effect until the unit is capable of generating
	187	+	electricity.
	188	+	3.For electrical generating plants, in addition to the tax imposed by subsection 2, there is
	189	+	a tax at the rate of twenty-five one-hundredths of one mill on each kilowatt hour of
	190	+	electricity produced for the purpose of sale. For all electrical generating plants that
	191	+	begin construction or complete repowering, the production from the plants is exempt
	192	+	from the tax imposed by this subsection for five years from the date of the first taxable
	193	+	production or from the date of the first taxable production after repowering from the
	194	+	plant.
	195	+	4.For coal gasification plants, the tax is the greater of either the amount provided in
	196	+	subsection 1 or thirteen and one-half cents on each one thousand cubic feet
	197	+	[28316.85 liters] of synthetic natural gas produced for the purpose of sale but not
	198	+	including any amount of synthetic natural gas in excess of one hundred ten million
	199	+	cubic feet per day.
	200	+	5.a.For all coal conversion facilities, other than electrical generating plants, the
	201	+	production from the facilities is exempt from eighty-five percent of the tax
	202	+	imposed by this section for a period of five years from the date of first taxable
	203	+	production from the facility. The operator of each facility applying for exemption
	204	+	under this subsection shall certify to the tax commissioner the date of first taxable
	205	+	production of the facility.
	206	+	b.The board of county commissioners may, by resolution, grant to the operator of a
	207	+	coal conversion facility, other than an electrical generating plant, located within
	208	+	the county a partial or complete exemption from the remaining fifteen percent of
	209	+	tax imposed by this section for a period not exceeding five years from the date of
	210	+	the first taxable production from the facility. Notwithstanding the provisions of
	211	+	section 57-60-14, any tax collected which is based upon the production of a
	212	+	facility subject to the exemption provided by this subsection must be allocated
	213	+	entirely to the county for allocation as provided in section 57-60-15.
	214	+	6.For coal beneficiation plants, the tax is twenty cents on each ton of two thousand
	215	+	pounds [907.18 kilograms] of beneficiated coal produced for the purpose of sale, or
	216	+	one and one-quarter percent of the gross receipts derived from such facility for the
	217	+	Page No. 4 25.0895.01000
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183	248		31 Sixty-ninth
184	249		Legislative Assembly
185		-	months, the tax on that unit for taxable periods beginning after the eighteenth month
186		-	must be reduced by the ratio that the cost of repair of the unit bears to the original cost
187		-	of the unit. This reduced rate remains in effect until the unit is capable of generating
188		-	electricity.
189		-	3.For electrical generating plants, in addition to the tax imposed by subsection 2, there is
190		-	a tax at the rate of twenty-five one-hundredths of one mill on each kilowatt hour of
191		-	electricity produced for the purpose of sale. For all electrical generating plants that
192		-	begin construction or complete repowering, the production from the plants is exempt
193		-	from the tax imposed by this subsection for five years from the date of the first taxable
194		-	production or from the date of the first taxable production after repowering from the
195		-	plant.
196		-	4.For coal gasification plants, the tax is the greater of either the amount provided in
197		-	subsection 1 or thirteen and one-half cents on each one thousand cubic feet
198		-	[28316.85 liters] of synthetic natural gas produced for the purpose of sale but not
199		-	including any amount of synthetic natural gas in excess of one hundred ten million
200		-	cubic feet per day.
201		-	5.a.For all coal conversion facilities, other than electrical generating plants, the
202		-	production from the facilities is exempt from eighty-five percent of the tax
203		-	imposed by this section for a period of five years from the date of first taxable
204		-	production from the facility. The operator of each facility applying for exemption
205		-	under this subsection shall certify to the tax commissioner the date of first taxable
206		-	production of the facility.
207		-	b.The board of county commissioners may, by resolution, grant to the operator of a
208		-	coal conversion facility, other than an electrical generating plant, located within
209		-	the county a partial or complete exemption from the remaining fifteen percent of
210		-	tax imposed by this section for a period not exceeding five years from the date of
211		-	the first taxable production from the facility. Notwithstanding the provisions of
212		-	section 57-60-14, any tax collected which is based upon the production of a
213		-	facility subject to the exemption provided by this subsection must be allocated
214		-	entirely to the county for allocation as provided in section 57-60-15.
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247		-	6.For coal beneficiation plants, the tax is twenty cents on each ton of two thousand
248		-	pounds [907.18 kilograms] of beneficiated coal produced for the purpose of sale, or
249		-	one and one-quarter percent of the gross receipts derived from such facility for the
250	250		preceding month, whichever amount is greater. Any amount of beneficiated coal
251	251		produced in excess of eighty percent of the design capacity of the coal beneficiation
252	252		plant or produced for use within a coal conversion facility is exempt from such tax.
253		-	SECTION 2. AMENDMENT. Section 57-60-02.1 of the North Dakota Century Code is
254		-	amended and reenacted as follows:
255		-	57-60-02.1. Carbon dioxide capture credit - Reporting requirement.
256		-	A coal conversion facility that achieves a twenty percent capture of carbon dioxide
257		-	emissions during a taxable period is entitled to a twenty percent reduction in the state
258		-	generallegacy fund share of the tax imposed under section 57-60-02 during that taxable period.
259		-	The facility is entitled to an additional reduction of one percent of the state generallegacy fund
260		-	share of the tax imposed under section 57-60-02 for every additional two percentage points of
261		-	its capture of carbon dioxide emissions. A maximum fifty percent reduction of the state
262		-	generallegacy fund share of the tax imposed under section 57-60-02 is allowed for eighty
263		-	percent or more capture of carbon dioxide emissions. A coal conversion facility may receive the
264		-	reduction in coal conversion tax under this section for ten years from the date of first capture of
265		-	carbon dioxide emission or for ten years from the date the coal conversion facility is eligible to
266		-	receive the credit. A coal conversion facility that met the carbon dioxide capture requirements
267		-	before January 1, 2017, may not claim the reduction under this section.
268		-	The operator of a coal conversion facility that receives a credit under this section shall
269		-	report annually to the legislative council. The report must include:
270		-	1.An overview of the carbon dioxide capture project.
271		-	2.A status report on the current state of the carbon dioxide capture project, including
272		-	data on the amount of carbon dioxide produced from the facility before the carbon
273		-	dioxide capture project and the current carbon dioxide produced and captured from
274		-	the facility.
275		-	3.Any recent changes to enhance the carbon dioxide capture system.
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307		-	4.Information on the status of federal law and regulations related to the carbon dioxide
308		-	capture project, including any benefits from the project realized by the operator under
309		-	federal law and regulations.
310		-	SECTION 3. AMENDMENT. Section 57-60-02.2 of the North Dakota Century Code is
	253	+	SECTION 2. AMENDMENT. Section 57-60-02.2 of the North Dakota Century Code is
311	254		amended and reenacted as follows:
312	255		57-60-02.2. Coal conversion facility tax - Exemption - Lignite research tax -
313		-	Imposition. (Effective ~~throughafter June 30, 2026, and~~ through June 30, ~~2029~~)
	256	+	Imposition. (Effective through June 30, 20262036)
314	257		1.Excluding the generation tax imposed under subsection 3 of section 57-60-02, a coal
315		-	conversion facility is exempt from eighty-fivefifty percent of the state share of the tax
316		-	imposed under section 57-60-02 and instead. The coal conversion facility shall pay a
317		-	lignite research tax equal to eighty-five percent of the tax imposed under section
318		-	57-60-02 before the application of the exemption under this subsection, multiplied by
319		-	five percent. For purposes of this subsection, the "state share" means eighty-five
320		-	percent of the tax imposed under section 57 - 60 - 02.
321		-	2.An electrical generating plant is exempt from fifty percent of the generation tax
322		-	imposed under subsection 3 of section 57-60-02 and instead. The electrical generating
323		-	plant shall pay a lignite research tax equal to the tax imposed under subsection 3 of
324		-	section 57-60-02 before the application of the exemption under this subsection,
325		-	multiplied by five percent.
326		-	SECTION 4. AMENDMENT. Section 57-60-14 of the North Dakota Century Code is
	258	+	conversion facility is exempt from eighty-five percent of the tax imposed under section
	259	+	57-60-02 and instead shall pay a lignite research tax equal to eighty-five percent of the
	260	+	tax imposed under section 57-60-02 multiplied by five percent.
	261	+	2.An electrical generating plant is exempt from the generation tax imposed under
	262	+	subsection 3 of section 57-60-02 and instead shall pay a lignite research tax equal to
	263	+	the tax imposed under subsection 3 of section 57-60-02 multiplied by five percent.
	264	+	SECTION 3. AMENDMENT. Section 57-60-14 of the North Dakota Century Code is
327	265		amended and reenacted as follows:
328		-	57-60-14. Allocation of revenue - Continuing appropriation. (Effective ~~throughafter~~
329		-	June 30, ~~2026, and through June 30, 2029~~)
	266	+	57-60-14. Allocation of revenue - Continuing appropriation. (Effective through
	267	+	June 30, 20262036)
330	268		1.At least quarterly, the state treasurer shall allocate:
331	269		a.The lignite research tax collections under section 57-60-02.2 to the lignite
332	270		research fund for the purposes under section 57-61-01.5.
333		-	b.An amount equal to the tax exempted under section 57 - 60 - 02.2 to the legacy
334		-	fund to become part of the principal of the legacy fund.
335		-	c.The remaining coal conversion tax collections under section 57-60-02 to the
	271	+	b.The remaining coal conversion tax collections under section 57-60-02 to the
336	272		county.
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369	273		2.Notwithstanding any other provision of law, the allocation under this section to each
370	274		county may not be less in each calendar year than the amount certified to the state
371	275		treasurer for each county under this section in the immediately preceding calendar
372	276		year. For a county that has received less in a calendar year than the amount certified
373	277		to the state treasurer for that county in the immediately preceding calendar year, not
374	278		later than January tenth of the following year, the county auditor shall calculate the
375	279		amount that is due under this subsection and submit a statement of the amount to the
376	280		state treasurer. The state treasurer shall verify the stated amount and make the
377		-	required payment under this subsection to the county, from collections received under
378		-	section 57-60-02, not later than March first of the following year. The funds needed to
379		-	make the distribution to counties under this subsection are appropriated on a
380		-	continuing basis for making these payments. Money received by a county under this
381		-	subsection must be distributed pursuant to section 57-60-15.
382		-	3.Notwithstanding any other provision of law, for a county in which is located a coal
383		-	conversion facility that was not a coal conversion facility under this chapter before
384		-	January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
385		-	county under this section, except that for a county described in this subsection,
386		-	amounts received for any calendar year must be allocated by the county in the same
387		-	manner property taxes for the facility were allocated for taxable year 2001.
388		-	Allocation of revenue - Continuing appropriation. (Effective after June 30, 20262029)
389		-	1.The state treasurer shall no less than quarterly allocate all moneys received from all
390		-	coal conversion facilities in each county pursuant to the provisions of this chapter,
391		-	fifteen percent to the county and eighty-five percent to the state general fund, except
392		-	moneys received from the tax imposed by subsection 3 of section 57-60-02, which
393		-	must be deposited inallocated to the state general fund. Five percent of all funds
394		-	allocated to the state general fund pursuant to this chapterFrom the amount allocated
395		-	to the state under this subsection:
396		-	a.Five percent must be allocated to the lignite research fund, for the purposes
397		-	defined in section 57-61-01.5; and
398		-	b.The remaining amount must be deposited in the legacy fund to become part of
399		-	the principal of the legacy fund.
400		-	Page No. 7 25.0895.02000
	281	+	Page No. 5 25.0895.01000
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431	312		31 Sixty-ninth
432	313		Legislative Assembly
	314	+	required payment under this subsection to the county, from collections received under
	315	+	section 57-60-02, not later than March first of the following year. The funds needed to
	316	+	make the distribution to counties under this subsection are appropriated on a
	317	+	continuing basis for making these payments. Money received by a county under this
	318	+	subsection must be distributed pursuant to section 57-60-15.
	319	+	3.Notwithstanding any other provision of law, for a county in which is located a coal
	320	+	conversion facility that was not a coal conversion facility under this chapter before
	321	+	January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
	322	+	county under this section, except that for a county described in this subsection,
	323	+	amounts received for any calendar year must be allocated by the county in the same
	324	+	manner property taxes for the facility were allocated for taxable year 2001.
	325	+	Allocation of revenue - Continuing appropriation. (Effective after June 30, 20262036)
	326	+	1.The state treasurer shall no less than quarterly allocate all moneys received from all
	327	+	coal conversion facilities in each county pursuant to the provisions of this chapter,
	328	+	fifteen percent to the county and eighty-five percent to the state general fund, except
	329	+	moneys received from the tax imposed by subsection 3 of section 57-60-02, which
	330	+	must be deposited in the state general fund. Five percent of all funds allocated to the
	331	+	state general fund pursuant to this chapter must be allocated to the lignite research
	332	+	fund, for the purposes defined in section 57-61-01.5.
433	333		2.Notwithstanding any other provision of law, the allocation under this section to each
434	334		county may not be less in each calendar year than the amount certified to the state
435	335		treasurer for each county under this section in the immediately preceding calendar
436	336		year. For a county that has received less in a calendar year than the amount certified
437	337		to the state treasurer for that county in the immediately preceding calendar year, not
438	338		later than January tenth of the following year, the county auditor shall calculate the
439	339		amount that is due under this subsection and submit a statement of the amount to the
440	340		state treasurer. The state treasurer shall verify the stated amount and make the
441	341		required payment under this subsection to the county, from collections received under
442	342		section 57-60-02, not later than March first of the following year. The funds needed to
443	343		make the distribution to counties under this subsection are appropriated on a
444		-	continuing basis for making these payments. Money received by a county under this
445		-	subsection must be distributed pursuant to section 57-60-15.
446		-	3.Notwithstanding any other provision of law, for a county in which is located a coal
447		-	conversion facility that was not a coal conversion facility under this chapter before
448		-	January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
449		-	county under this section, except that for a county described in this subsection,
450		-	amounts received for any calendar year must be allocated by the county in the same
451		-	manner property taxes for the facility were allocated for taxable year 2001.
452		-	SECTION 5. AMENDMENT. Section 57-61-01 of the North Dakota Century Code is
453		-	amended and reenacted as follows:
454		-	57-61-01. Severance tax upon coal - Imposition - In lieu of sales and use taxes -
455		-	Payment to the tax commissioner. (Effective through June 30, 20262029)
456		-	1.There is hereby imposed upon all coal severed for sale or for industrial purposes by
457		-	coal mines within the state a tax of thirty-seven and one-half cents per ton of two
458		-	thousand pounds [907.18 kilograms]. The severance tax is in lieu of any sales or use
459		-	taxes imposed by law. Each coal mine owner or operator shall remit the tax for each
460		-	month, within twenty-five days after the end of each month, to the tax commissioner
461		-	on reports and forms as the tax commissioner deems necessary. For the purposes of
462		-	this chapter, commercial leonardite is taxed in the same manner as coal.
463		-	Page No. 8 25.0895.02000
	344	+	Page No. 6 25.0895.01000
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493	374		30 Sixty-ninth
494	375		Legislative Assembly
	376	+	continuing basis for making these payments. Money received by a county under this
	377	+	subsection must be distributed pursuant to section 57-60-15.
	378	+	3.Notwithstanding any other provision of law, for a county in which is located a coal
	379	+	conversion facility that was not a coal conversion facility under this chapter before
	380	+	January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
	381	+	county under this section, except that for a county described in this subsection,
	382	+	amounts received for any calendar year must be allocated by the county in the same
	383	+	manner property taxes for the facility were allocated for taxable year 2001.
	384	+	SECTION 4. AMENDMENT. Section 57-61-01 of the North Dakota Century Code is
	385	+	amended and reenacted as follows:
	386	+	57-61-01. Severance tax upon coal - Imposition - In lieu of sales and use taxes -
	387	+	Payment to the tax commissioner. (Effective through June 30, 20262036)
	388	+	1.There is hereby imposed upon all coal severed for sale or for industrial purposes by
	389	+	coal mines within the state a tax of thirty-seven and one-half cents per ton of two
	390	+	thousand pounds [907.18 kilograms]. The severance tax is in lieu of any sales or use
	391	+	taxes imposed by law. Each coal mine owner or operator shall remit the tax for each
	392	+	month, within twenty-five days after the end of each month, to the tax commissioner
	393	+	on reports and forms as the tax commissioner deems necessary. For the purposes of
	394	+	this chapter, commercial leonardite is taxed in the same manner as coal.
495	395		2.The board of county commissioners, by resolution, may grant to the operator of a mine
496	396		from which the coal or commercial leonardite is mined a partial or complete exemption
497	397		from up to seventy percent of the tax imposed under this section for a period not to
498		-	extend past June 30, ~~20262029~~. Any tax revenue exceeding thirty percent of the tax
	398	+	extend past June 30, 20262036. Any tax revenue exceeding thirty percent of the tax
499	399		imposed under this subsection must be allocated to the county under subsection 3 of
500	400		section 57-62-02.
501	401		Severance tax upon coal - Imposition - In lieu of sales and use taxes - Payment to the
502		-	tax commissioner. (Effective after June 30, ~~20262029~~) There is hereby imposed upon all
	402	+	tax commissioner. (Effective after June 30, 20262036) There is hereby imposed upon all
503	403		coal severed for sale or for industrial purposes by coal mines within the state a tax of
504	404		thirty-seven and one-half cents per ton of two thousand pounds [907.18 kilograms]. The
505	405		severance tax is in lieu of any sales or use taxes imposed by law. Each coal mine owner or
506	406		operator shall remit the tax for each month, within twenty-five days after the end of each month,
507		-	to the tax commissioner on reports and forms as the tax commissioner deems necessary. For
508		-	the purposes of this chapter, commercial leonardite is taxed in the same manner as coal.
509		-	SECTION 6. EFFECTIVE DATE. Section 5 of this Act is effective for taxable production
510		-	beginning after June 30, 2025. Sections 1 through 4 of this Act are effective for taxable
511		-	production beginning after June 30, 2026.
512		-	Page No. 9 25.0895.02000
	407	+	Page No. 7 25.0895.01000
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	438	+	31 Sixty-ninth
	439	+	Legislative Assembly
	440	+	to the tax commissioner on reports and forms as the tax commissioner deems necessary. For
	441	+	the purposes of this chapter, commercial leonardite is taxed in the same manner as coal.
	442	+	SECTION 5. EFFECTIVE DATE. This Act is effective for taxable production beginning after
	443	+	June 30, 2025.
	444	+	Page No. 8 25.0895.01000
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