A BILL for an Act to provide for a legislative management study of the oil and gas tax revenue allocation formulas.
Impact
If passed, HB1576 could significantly influence how tax revenues from the oil and gas sector are distributed across local and regional governments. By focusing on infrastructure needs and the specific impacts of development, the legislative management might recommend changes to ensure that regions with more substantial oil and gas activity receive adequate funding. This approach aims to address potential gaps in revenue allocations that could hinder local development efforts and infrastructure maintenance.
Summary
House Bill 1576 is a proposal aimed at facilitating a legislative management study concerning the allocation formulas of oil and gas tax revenues in North Dakota. The bill mandates the legislative management to analyze both current and historical distributions of these tax revenues to various political subdivisions. This study is set to take place during the 2025-26 interim and will consider how allocations might be adjusted based on infrastructure and other impacts related to oil and gas development within the state.
Contention
While the bill primarily focuses on conducting a study, it may encounter debates centered around the effectiveness of current revenue allocation mechanisms. Stakeholders may express concerns about whether the existing formulas adequately reflect the needs of political subdivisions impacted by oil and gas extraction. Additionally, there could be discussions on the potential for legislative recommendations to alter existing financial structures, impacting communities that rely on these revenues for essential services and infrastructure upkeep.
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.
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.
School district enrollment, the definition of "probationary teacher", a school district's policy governing possession of a weapon, the definition of "dangerous weapon", modification of weighting factors, transition maximums and an increase in per student payments, and the school construction revolving loan fund; to provide for a legislative management study; to provide a legislative management report; to provide an appropriation; to provide for an exemption; to provide for a transfer; and to provide an effective 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.
The powers and duties of the state auditor and the salary of the state auditor; to provide for a legislative management study; to provide for a legislative management report; and to declare an emergency.
Oil and gas tax revenue hedging; to provide an appropriation; to provide a continuing appropriation; to provide for a transfer; to provide a statement of legislative intent; and to declare an emergency.