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ND Oil Industry Wants End to Price-Based Tax Triggers

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ND Oil Industry Wants End to Price-Based Tax Triggers


By JAMES MacPHERSON, Related Press

BISMARCK, N.D. (AP) — North Dakota’s oil business desires lawmakers to alter the framework for taxing crude manufacturing that abolishes the price-based triggers which have been in place for many years.

Except oil costs all of a sudden decline, North Dakota’s treasury could begin reaping the advantages of a tax enhance on drillers that might bump state tax collections by tens of hundreds of thousands of {dollars} within the present two-year finances cycle. The current scenario with excessive crude costs is in distinction to just some years in the past when low oil costs threatened to set off a tax break for drillers that will have value the state misplaced income.

Abolishing oil-tax triggers provides drillers certainty and retains the business’s jobs and income flowing, stated Ron Ness, president of the North Dakota Petroleum Council, a gaggle that represents a number of hundred firms working within the state’s oil patch.

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Corporations may depart North Dakota, the nation’s No. 3 oil producer, and focus drilling in different states which have a greater and extra sure tax local weather, he stated.

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“Taxing oil extra will get you much less,” stated Ness, who desires a flat tax on oil manufacturing.

“The curler coaster costs we’ve seen actually imply that we must be involved about holding funding (in North Dakota), “ Ness stated. “Predictability the place doable is vital.”

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The potential for an oil tax enhance is feasible due to a state regulation that adjusts North Dakota’s oil extraction tax, relying on whether or not the three-month common worth of a barrel of oil is above or under a specified “set off” worth. Legislators first endorsed the idea within the mid-Nineteen Eighties, throughout a time of depressed oil costs.

North Dakota has two main taxes on oil manufacturing — a manufacturing tax and an extraction tax, the latter of which was a part of an initiated measure voters authorised in November 1980.

The prospect of huge tax cuts on the business as a consequence of depressed oil costs had North Dakota lawmakers scrambling within the 2015 session to switch the tax framework. Had oil costs slipped under a five-month common of $55.09, the state stood to lose a whole bunch of hundreds of thousands of {dollars}.

The ensuing laws was among the many most contentious of the session and handed just some days earlier than lawmakers adjourned. GOP lawmakers stated it might present a extra predictable tax coverage. Democrats argued it was a giveaway to the oil business and would in the end value the state billions of {dollars} in tax income.

The present set off is a part of that 2015 laws that abolished some price-based incentives for the oil business in trade for a decrease oil tax charge — from 11.5% to 10%. However the invoice additionally raised the overall oil tax to 11% if oil costs rise to $90 a barrel for 3 consecutive months.

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The elevated tax charge is erased if oil slips under the edge.

The month-to-month averages are figured utilizing West Texas Intermediate costs, the U.S. benchmark set at Cushing, Oklahoma. The set off worth is now $94.69 a barrel. It’s adjusted yearly for inflation, utilizing a worth index for industrial commodities compiled by the U.S. Labor Division’s Bureau of Labor Statistics.

WTI crude was fetching about $100 a barrel Wednesday, and has been above the value set off since Feb. 28. Oil costs have surged with Russia’s invasion of Ukraine.

The value-triggered tax enhance would swell state tax collections by $372 million to $4.09 billion for the present 2021-23 finances cycle, in response to a income evaluation achieved final month by the Legislative Council, which is the analysis arm of the North Dakota Legislature.

The Legislature’s interim Authorities Finance Committee heard an replace Wednesday from Tax Division on the potential affect of the oil extraction tax set off.

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Tax Commissioner Brian Kroshus stated June is the earliest the set off can take impact, and it’ll probably occur primarily based on present oil costs.

Rep. Michael Howe, the committee chairman, stated he doesn’t anticipate any proposed laws coming from his panel, however suspects Home and Senate taxation committees to debate price-triggers when the Legislature reconvenes in January.

Former Republican Home Majority Chief Al Carlson has lengthy advocated ditching the price-based triggers on oil manufacturing. Payments he sponsored in 2015 and 2017 handed the Home however have been killed within the Senate.

“I did every part I may to do away with it,” he stated. “It’s horrible tax coverage.”

Carlson stated the Legislature should take a look at the lengthy recreation, and that there are not any ensures firms will preserve drilling in North Dakota if the brand new triggers take impact.

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“Companies want a predictable tax setting to develop, or they may go elsewhere as an alternative and gained’t come again,” he stated.

This model corrects the spelling of Brian Kroshus’ first title.

Copyright 2022 The Related Press. All rights reserved. This materials is probably not revealed, broadcast, rewritten or redistributed.



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North Dakota

North Dakota Badlands national monument proposed with tribes’ support

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North Dakota Badlands national monument proposed with tribes’ support


A coalition of conservation groups and Native American tribal citizens on Friday called on President Joe Biden to designate nearly 140,000 acres of rugged, scenic Badlands as North Dakota’s first national monument, a proposal several tribal nations say would preserve the area’s indigenous and cultural heritage.

The proposed Maah Daah Hey National Monument would encompass 11 noncontiguous, newly designated units totaling 139,729 acres in the Little Missouri National Grassland. The proposed units would hug the popular recreation trail of the same name and neighbor Theodore Roosevelt National Park, named for the 26th president who ranched and roamed in the Badlands as a young man in the 1880s.

“When you tell the story of landscape, you have to tell the story of people,” said Michael Barthelemy, an enrolled member of the Mandan, Hidatsa and Arikara Nation and director of Native American studies at Nueta Hidatsa Sahnish College. “You have to tell the story of the people that first inhabited those places and the symbiotic relationship between the people and the landscape, how the people worked to shape the land and how the land worked to shape the people.”

The U.S. Forest Service would manage the proposed monument. The National Park Service oversees many national monuments, which are similar to national parks and usually designated by the president to protect the landscape’s features.

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Supporters have traveled twice to Washington to meet with White House, Interior Department, Forest Service and Department of Agriculture officials. But the effort faces an uphill battle with less than two months remaining in Biden’s term and potential headwinds in President-elect Trump’s incoming administration.

If unsuccessful, the group would turn to the Trump administration “because we believe this is a good idea regardless of who’s president,” Dakota Resource Council Executive Director Scott Skokos said.

Dozens if not hundreds of oil and natural gas wells dot the landscape where the proposed monument would span, according to the supporters’ map. But the proposed units have no oil and gas leases, private inholdings or surface occupancy, and no grazing leases would be removed, said North Dakota Wildlife Federation Executive Director John Bradley.

The proposal is supported by the MHA Nation, the Spirit Lake Tribe and the Standing Rock Sioux Tribe through council resolutions.

If created, the monument would help tribal citizens stay connected to their identity, said Democratic state Rep. Lisa Finley-DeVille, an MHA Nation enrolled member.

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North Dakota Gov. Doug Burgum is Trump’s pick to lead the Interior Department, which oversees the National Park Service. In a written statement, Burgum said: “North Dakota is proof that we can protect our precious parks, cultural heritage and natural resources AND responsibly develop our vast energy resources.”

North Dakota Sen. John Hoeven’s office said Friday was the first they had heard of the proposal, “but any effort that would make it harder for ranchers to operate and that could restrict multiple use, including energy development, is going to raise concerns with Senator Hoeven.”



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Port: Make families great again

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Port: Make families great again


MINOT — Gov.-elect Kelly Armstrong is roaring into office with some political capital to spend. I have some ideas for how to spend it during next year’s legislative session.

It’s a three-pronged plan focused on children. I’m calling it “Make Families Great Again.” I’m no marketing genius, but I have been a dad for 24 years. There are some things the state could do to help.

The first is school lunches. The state should pay for them. The Legislature had a rollicking debate about this during the 2023 session. The opponents, who liken this to a handout, largely won the debate. Armstrong could put some muscle behind a new initiative to have the state take over payments. The social media gadflies might not like it, but it would prove deeply popular with the general public, especially if we neutralize the “handout” argument by reframing the debate.

North Dakota families are obligated to send their children to school. The kids have to eat. The lunch bills add up. I have two kids in public school. In the 2023-2024 school year, I paid $1,501.65 for lunches. That’s more than I pay in income taxes.

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How much would it cost? In the 2023 session,

House Bill 1491

would have appropriated $89.5 million to cover the cost. The price tag would likely be similar now, but don’t consider it an expense so much as putting nearly $90 million back in the pockets of families with school-age children. A demographic that, thanks to inflation and other factors, could use some help.

Speaking of helping, the second plank of this plan is child care. This burgeoning cost is not just a millstone around young families’ necks but also hurts our state’s economy. We have a chronic workforce shortage, yet many North Dakotans are held out of the workforce because they either cannot find child care or because the care available is prohibitively expensive.

State leaders haven’t exactly been sitting on their hands. During the 2023 session, Gov. Doug Burgum signed

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a $66 million child care package

focusing on assistance and incentives. We should do something bolder.

Maybe a direct tax credit to cover at least some of the expenses?

The last plank is getting vaccination rates back on track.

According to data from the state Department of Health,

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the kindergarten-age vaccination rate for chicken pox declined 3.76% from the 2019-2020 school year. The rate for the measles, mumps and rubella vaccine is down 3.72%, polio vaccines 3.54%, hepatitis B vaccines 2.27%, and the vaccine for diphtheria, tetanus and pertussis 3.91%.

Meanwhile, personal and religious exemptions for kindergarten students have risen by nearly 69%.

This may be politically risky for Armstrong. Anti-vaxx crankery is on the rise among Republicans, but, again, Armstrong has some political capital to spend. This would be a helpful place for it. A campaign to turn vaccine rates around would help protect the kids from diseases that haven’t been a concern in generations. It would help address workforce needs as well.

When a sick kid can’t go to school or day care, parents can’t go to work.

These ideas are practical and bold and would do a great deal to help North Dakota families.

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Rob Port is a news reporter, columnist, and podcast host for the Forum News Service with an extensive background in investigations and public records. He covers politics and government in North Dakota and the upper Midwest. Reach him at rport@forumcomm.com. Click here to subscribe to his Plain Talk podcast.





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North Dakota 77-73 Loyola Marymount (Nov 22, 2024) Game Recap – ESPN

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North Dakota 77-73 Loyola Marymount (Nov 22, 2024) Game Recap – ESPN


LOS ANGELES — — Treysen Eaglestaff had 23 points in North Dakota’s 77-73 win over Loyola Marymount on Friday night.

Eaglestaff also contributed five rebounds for the Fightin’ Hawks (3-2). Mier Panoam scored 16 points and added seven rebounds. Dariyus Woodson had 12 points.

The Lions (1-3) were led in scoring by Caleb Stone-Carrawell with 17 points. Alex Merkviladze added 16 points, eight rebounds, four assists and two steals. Will Johnston had 15 points and four assists.

North Dakota went into the half ahead of Loyola Marymount 36-32. Eaglestaff led North Dakota with 12 second-half points.

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The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.



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