BISMARCK, N.D. — Action by the North Dakota Legislature earlier this year means a price-triggered exemption for the state’s oil industry will not go into effect on Tuesday.
State Tax commissioner Ryan Rauschenberger (RAW’-shuhn-bur-gur) says the Legislature’s elimination of the law means the state will save about $1 million daily based on current oil prices and production.
North Dakota lawmakers approved a new oil tax framework in April that cuts the price-triggered exemption in exchange for a lower tax rate.
November marked the fifth-straight month that oil prices averaged below a trigger price of $55.09. Had lawmakers not acted, the tax break for drillers would have gone into effect Tuesday.
The legislation gives some incentives to drillers. Beginning Jan. 1, the state’s oil tax rate drops from 11.5 percent to 10 percent.
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