ND House Defeats Oil Tax Cut, Extends 'Trigger'A proposed oil tax cut has been defeated in the North Dakota House.
By: Associated Press,
BISMARCK, N.D. (AP) — A proposed oil tax cut has been defeated in the North Dakota House.
The measure would have reduced North Dakota's tax rate on newly drilled oil wells from 11.5 percent to 9.5 percent.
North Dakota's Tax Department says the reduction would mean $371 million less in oil tax collections over two years.
In a separate vote on Tuesday, the House agreed to extend a so-called "trigger" tax break for the oil industry.
The trigger bill would cut oil taxes if the oil price average falls below a benchmark price for five straight months.
The benchmark price is now $46.78 a barrel. Recent prices have been well above $80 a barrel.
The present trigger bill is supposed to expire July 1. The approved legislation extends the trigger until July 1, 2013.