October oil prices could revert North Dakota oil tax rate

State Tax Commissioner Brian Kroshus on Thursday up to date the Legislature’s interim Legacy Fund Earnings Committee on the oil tax set off, which took impact after oil costs held above $94.69 per barrel in March, April and Could. The set off will increase the oil extraction tax paid by oil corporations from 5% to six%.

However August and September oil costs have been beneath the set off value, and if October follows go well with, the tax fee will fall again to five% efficient Nov. 1, in response to Kroshus.

The set off will increase the general tax fee on oil manufacturing from 10% to 11%. 

The state collected oil extraction tax income will increase of greater than $59 million from June and July oil manufacturing because of the oil tax set off being in impact. The set off’s fee “may also be in play” for August, September and October “at a minimal,” in response to Kroshus.

Common oil costs per barrel have been $114.14 for June and $100.04 for July. August fell to $91.42, and the Sept. 1-20 interval averaged $86.05. 

State oil tax income by means of August has exceeded the 2021 Legislature’s forecast by 52%, or greater than $1 billion to date. Month-to-month oil taxes got here in 161% above projections in August.