Bill > SB2320

This bill amends North Dakota's tax exemption for carbon dioxide pipelines by modifying existing law to clarify and limit the current property tax exemption. Specifically, the bill maintains the existing tax exemption for pipeline property (excluding land) constructed after 1996, which provides a tax break during construction and for the first ten full taxable years after initial operation. However, the bill now explicitly excludes interstate pipelines that bring carbon dioxide into the state for geologic storage or enhanced oil and natural gas recovery from receiving this tax exemption. The purpose appears to be to provide targeted tax relief for local carbon dioxide pipeline infrastructure while preventing tax breaks for pipelines primarily serving interstate transportation purposes. The bill will take effect for taxable years beginning after December 31, 2024, which means the new rules will apply to tax assessments starting in 2025.

Budget and Finance

https://ndlegis.gov/assembly/69-2025/regular/bill-overview/bo2320.html