Bill > HB1483

This bill modifies North Dakota's oil extraction tax rate for new wells drilled outside the Bakken and Three Forks formations. Specifically, the legislation increases the number of barrels eligible for a reduced tax rate from 75,000 to 300,000 barrels, and extends the tax reduction period from 18 to 36 months after well completion. The bill includes a notable exclusion for wells located within reservation boundaries or on trust lands, though tribes can opt-in to the tax rate reduction by providing written notice to the tax commissioner. Additionally, the bill mandates a legislative management study during the 2025-26 interim to examine the oil extraction tax exemption for stripper wells (low-producing wells), which will involve analyzing the number of qualifying wells, fiscal impact, and potential alternative tax policies. The tax rate reduction provisions will take effect for taxable production beginning after June 30, 2025, providing an incentive for oil exploration and development in areas outside the state's primary oil-producing formations.

Budget and Finance

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo1483.html