ND
North Dakota Senate Bill SB2323

North Dakota 2025-2026 Regular Session

North Dakota Senate Bill SB2323

Introduced
1/20/25  
Refer
1/20/25  
Report Pass
1/29/25  
Refer
1/29/25  
Report Pass
2/17/25  
Engrossed
2/19/25  
Refer
3/7/25  
Report Pass
4/10/25  
Refer
4/11/25  
Report Pass
4/23/25  
Enrolled
5/2/25  

Caption

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.

Impact

The bill introduces a more structured approach to the distribution of oil and gas revenue, which is significant for local governments and services. By allocating funds to the North Dakota outdoor heritage fund, the abandoned oil and gas well plugging and site reclamation fund, and various school district funding pools, the legislation addresses the need for balancing economic development with environmental considerations. The bill is expected to enhance support for local infrastructure, educational needs, and environmental protection efforts, aligning financial structures with the realities of oil and gas production in North Dakota.

Summary

Senate Bill 2323 aims to amend and reenact sections of the North Dakota Century Code regarding the allocations of oil and gas gross production tax revenues. This legislation provides a framework for how the tax revenues generated from oil and gas production in the state are distributed among various funds and sectors, including a cap on yearly allocations to certain designated funds and the establishment of specific financial distributions to counties, municipalities, and school districts. The bill underscores the importance of creating sustainable funding mechanisms that directly support community needs as well as the financial and infrastructural demands posed by oil and gas activity.

Sentiment

The overall sentiment around SB2323 appears to be supportive, especially among parties focused on economic development and environmental sustainability. Proponents argue that the structured allocations will help ensure that the communities most impacted by oil and gas extraction receive necessary resources for their maintenance and growth. However, some concerns have been raised regarding the sufficiency of caps on allocations and whether the funding will adequately address all critical areas affected by such development.

Contention

Notable points of contention include discussions about the sufficiency of funding designated for certain sectors and potential overreliance on oil and gas revenues for local economies. Critics might argue that while the legislation aims to create a sustainable funding model, it still ties local financial health too closely to the volatility of the oil market. There is also a concern about the equitable distribution among counties, particularly with regards to those that might not see the same level of benefits from oil and gas extraction compared to others.

Companion Bills

No companion bills found.

Previously Filed As

ND SB2334

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.

ND SB2162

Oil and gas gross production tax allocations to counties.

ND SB2367

The allocation of the state share of oil and gas taxes.

ND HB1012

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.

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 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 SB2329

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.

ND SB2309

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.

ND SB2275

The state share of oil and gas taxes.

ND SB2284

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.

Similar Bills

ND SB2012

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.

ND SB2309

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.

ND SB2013

The salary of the superintendent of public instruction, baseline funding, high-cost students, and regional library cooperative definitions; to provide for a transfer; to provide for reports; to provide an exemption; to provide an effective date; and to declare an emergency.

ND HB1176

Legacy fund definitions and the legacy earnings fund; to provide for a legislative management study; to provide for a legislative management report; to provide an appropriation; to provide an exemption; to provide an effective date; to provide an expiration date; and to declare an emergency.

ND HB1168

Legacy fund definitions and the legacy earnings fund; to provide a statement of legislative intent; to provide for a legislative management study, to provide an appropriation; to provide an effective date; to provide an expiration date; and to declare an emergency.