Connect with us

North Dakota

ND Oil Industry Wants End to Price-Based Tax Triggers

Published

on

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.

Advertisement

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.

Political Cartoons

“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.”

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

“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.



Source link

Advertisement
Continue Reading
Advertisement
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

North Dakota

Bankruptcies for North Dakota and western Minnesota published Dec. 28, 2024

Published

on

Bankruptcies for North Dakota and western Minnesota published Dec. 28, 2024


Filed in U.S. Bankruptcy Court

North Dakota

Angela Latisha Farley, Fargo, Chapter 7

Desirae L. Johnson, Mandan, Chapter 7

Advertisement

Jessie J. Messmer, formerly known as Jessie Sticka, Dickinson, Chapter 7

Paulette Kay Thurn, Bismarck, Chapter 7

Jerry A. and Linda L. Dornback, formerly known as Linda amber, Valley City, Chapter 7

Justin N. and Alexis R. Tormaschy, also known as Alexis R. Emter, Belfield, Chapter 13

Minnesota

Advertisement

Bankruptcy filings from the following counties: Becker, Clay, Douglas, Grant, Hubbard, Mahnomen, Norman, Otter Tail, Polk, Traverse, Wadena and Wilkin.

There were no bankruptcies filed in this reporting area the week of Dec. 16, 2024.

Chapter 7 is a petition to liquidate assets and discharge debts.

Chapter 11 is a petition for protection from creditors and to reorganize.

Chapter 12 is a petition for family farmers to reorganize.

Advertisement

Chapter 13 is a petition for wage earners to readjust debts.

Our newsroom occasionally reports stories under a byline of “staff.” Often, the “staff” byline is used when rewriting basic news briefs that originate from official sources, such as a city press release about a road closure, and which require little or no reporting. At times, this byline is used when a news story includes numerous authors or when the story is formed by aggregating previously reported news from various sources. If outside sources are used, it is noted within the story.





Source link

Advertisement
Continue Reading

North Dakota

Hebron woman killed in crash near Glen Ullin

Published

on

Hebron woman killed in crash near Glen Ullin


MORTON COUNTY, N.D. (KFYR) – A Hebron woman was killed in a crash around 4:30 p.m. Friday on Morton County Road 88 just north of Glen Ullin.

The North Dakota Highway Patrol says the 66-year-old was distracted by a phone call, veered off the road into the ditch and hit a concrete bridge support.

The driver was not wearing a seatbelt and was life-flighted to a Bismarck hospital where she was pronounced dead.

Three children in the SUV were injured and transported to the hospital by ambulance. They were wearing seatbelts according to authorities.

Advertisement



Source link

Continue Reading

North Dakota

North Dakota’s John Hoeven, Kevin Cramer tout counter-UAS, mental health provisions in defense policy bill

Published

on

North Dakota’s John Hoeven, Kevin Cramer tout counter-UAS, mental health provisions in defense policy bill


GRAND FORKS — The latest defense authorization bill expands mental health care access for North Dakota’s military service members and adds new provisions for countering threats posed by unmanned drones.

Those are among the provisions touted by North Dakota’s two U.S. senators in the annual National Defense Authorization Act. President Joe Biden signed the bill into law Monday after it passed by divided votes in the House and Senate.

Language in the latest NDAA includes an order to establish a counter-UAS task force combatting drone incursions onto U.S. military bases and several provisions for current service members’ mental health care, including measures singling out pilots of U.S. combat drones.

Drone incursions have been reported in recent weeks over U.S. military bases in England and Germany, while residents of several eastern states have reported seeing numerous unidentified lighted drones flying overhead, though U.S. officials say most of the latter incidents have been manned aircraft.

Advertisement

Sen. John Hoeven, R-N.D., said the NDAA “helps formalize what (the Defense Department) is already doing” to combat unwanted drone use, citing the counter-UAS goals of

Project ULTRA

and ongoing efforts to

integrate drones into U.S. airspace at the Northern Plains UAS Test Site.

Project ULTRA — which stands for UAS logistics, traffic, research and autonomy — seeks to boost national security and operational efficiency of unmanned aerial system operations.

Advertisement

“The interesting thing about Grand Forks is we’ve built an ecosystem where, I’ve talked about us being the tip of the spear against China; we’re the tip of the spear in developing drone and counter-drone,” Hoeven said.

Sen. Kevin Cramer, R-N.D., has championed a provision that expands the number of mental health providers certified under military health insurance provider TRICARE.

Cramer said he pushed for the expanded access in response to a pair of suicides among Grand Forks Air Force Base personnel in the past several years.

“The standards to join TRICARE are so stringent now, they don’t take into account that some states like North Dakota only have certain accreditations and certifications that are available to them,” Cramer said. “If you don’t get the right credential — it’s not that it’s a better credential, just the right one — your providers don’t meet the standard for TRICARE.”

He’s also pushed for a provision creating a combat status identifier for pilots of remotely piloted aircraft involved in combat operations.

Advertisement

Cramer cited as inspiration the 119th Wing of the North Dakota National Guard, which flies MQ-9 Reaper unmanned planes.

“Our remote pilots are treated differently when it comes to things like PTSD potential or depression or mental health challenges as the result of, say, a kill shot,” he said. “I wanted to make sure the remote pilots are given the same type of consideration as somebody that’s in the cockpit of an airplane.”

This year’s NDAA also authorizes $1.9 million in planning and design funding for maintenance on Grand Forks Air Force Base’s runway —

one of Cramer’s pet projects

— and reauthorization for the Space Development Agency’s mission, including its recently-established Operations Center North at Grand Forks Air Force Base.

Advertisement

Hoeven said his office is working to appropriate another $450 million toward an advanced fire control system

built off the SDA’s network of low-Earth orbit satellites.

Other North Dakota-specific provisions in this year’s NDAA include authorization for funding to update the UH-72 Lakota helicopters used by the North Dakota National Guard and funding authorization to modernize Minot Air Force Base’s nuclear capabilities.

Policy measures, like more provider options for mental health care or the counter-UAS task force, became law with the passage of the NDAA.

However, NDAA provisions that require funding — like nuclear modernization or the runway study — will need to pass in a separate defense appropriations bill.

Advertisement

“An authorization just says that it’s approved,” Hoeven explained. “In defense appropriations, we allocate the dollars to do it, and if we don’t provide those dollars for the NDAA, for those authorizations or programs, then obviously they don’t advance.”

The federal government is currently operating at last year’s funding levels via a continuing resolution set to expire in March. Congress will have to attempt to pass a defense appropriations bill before then or pass another continuing resolution.

The NDAA usually passes with significant bipartisan support. This year, however, the bill passed with significant dissent from both House and Senate Democrats after a last-minute amendment by House Speaker Mike Johnson

added language barring TRICARE from covering some gender-affirming care

for transgender children of service members.

Advertisement

Both Hoeven and Cramer expressed support for Johnson’s amendment, which blocks gender-affirming care “that could result in sterilization” — though medical professionals say hormone therapy (like puberty blockers) generally does not cause infertility.

Cramer said providing gender-affirming care did not support military readiness and dismissed concerns about the mental health impact of denying that care to minors.

“(The amendment) has a much lower priority than caring for people who are stressed out by the fact that they’re a warfighter,” he said. “We need them to be healthy, we need them to be ready for war, and puberty blockers, gender-affirming care, just simply don’t do either of those things.”

Hoeven said gender-affirming care was hurting military readiness and recruiting and decried providing gender-affirming care as a “social experiment,” a phrase also used by Cramer.

President-elect Donald Trump is widely expected to reinstate a ban on transgender service members in the U.S. Armed Forces, as he did in his first administration.

Advertisement

North Dakota’s U.S. senators also dismissed concerns that the Johnson provision could affect bipartisanship or productivity in the next Congress.

The Senate ultimately passed the NDAA 85-15, while less than half of the House’s Democrats supported the act.

More Democrats attacked Johnson’s last-minute addition while saying they felt compelled to vote for the broader bill.

“I’m hopeful Democrats will come around and join us with what we’ve always done with our military, which is support our professional, great men and women in uniform who do such an outstanding job, not a bunch of social policies that shouldn’t be in there,” Hoeven said.

He also said he expects the embattled House speaker, who holds one of the smallest House majorities in history, to be reelected next year.

Advertisement

Cramer called this year’s NDAA a loss for the political left but said he “wouldn’t read a whole lot” into the dissent, pointing out the bill had continued its decades-long streak of passing into law despite partisan gridlock.

The 118th Congress, which ends Jan. 3, has been called one of the least productive Congresses in decades, and is by some counts the least productive in U.S. history.





Source link

Continue Reading
Advertisement

Trending