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Published January 31, 2011, 11:30 AM

ND Oil Industry Pressing for Tax Cut

North Dakota's oil industry says a tax reduction would help the state's long-term outlook for jobs and tax revenue.

By: Associated Press,

BISMARCK, N.D. (AP) — North Dakota's oil industry says a tax reduction would help the state's long-term outlook for jobs and tax revenue.

Two North Dakota Democratic House members are sponsoring a tax-cut measure. The House's Finance and Taxation Committee is reviewing the bill Monday.

It would reduce the state's overall oil tax rate from 11.5 percent to 9.5 percent, and would apply only to newly drilled wells.

The state Tax Department says the reduction would mean the state would collect $371 million less in taxes over two years.

North Dakota Petroleum Council President Ron Ness says the estimate is misleading because oil tax collections have been soaring.

He says the state is expecting to get more than $2.2 billion in oil taxes in the next two years.

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