Latest news with #SenateFinanceandTaxationCommittee
Yahoo
31-03-2025
- Business
- Yahoo
Tax exemption for oil wells outside North Dakota core areas approved by Senate
A gas flare burns in front of an oil pump jack near Killdeer, North Dakota, on Feb. 1, 2024. (Jeff Beach/North Dakota Monitor) A bill to create tax incentives for oil drilling outside of North Dakota's primary production areas passed the Senate on Monday, along with a possible study of the rising number of low-producing wells and their tax status. The Senate Finance and Taxation Committee amended House Bill 1483 to increase the amount of oil that could be produced under the tax break and lengthen the time period that the break would be in effect. Most of North Dakota's oil comes from the Bakken and Three Forks formations. The bill would encourage development in other geologic formations. Ron Ness, president of the North Dakota Petroleum Council, previously testified that North Dakota has 10 other formations with oil production potential. The first 300,000 barrels of oil produced during the first 36 months after a well is completed outside the Bakken and Three Forks formations would be taxed at a lower rate — 2% of the gross value of the oil. The typical oil extraction tax rate is 5%. North Dakota sees uptick in oil wells that qualify for tax exemption Rep. Chuck Walen, R-New Town, said the wells would still produce tax revenue in other ways, such as sales taxes. In addition, the wells would still be subject to the 5% gross production tax, which is paid in lieu of property taxes. The tax break does not apply to wells within a reservation unless the tribe opts in, under the amended bill. The bill also says Legislative Management shall consider a study of low-producing wells, known as stripper wells. Low-producing Bakken and Three Forks wells become exempt from the extraction tax after 12 consecutive months of producing no more than 35 barrels per day. The interim legislative study would examine the fiscal impact of the exemption and alternative tax policies for stripper wells. Some lawmakers have questioned whether it's good tax policy to allow wells to be classified as stripper wells forever, even if their production increases in the future with enhanced oil recovery. Nearly half of all North Dakota oil wells now qualify for the stripper well tax exemption. The Senate changes will need to be adopted by the House or differences can be resolved in a conference committee. SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX SUPPORT: YOU MAKE OUR WORK POSSIBLE
Yahoo
24-03-2025
- Automotive
- Yahoo
Lawmakers debate 3-cent gas tax increase, hike in EV registration fee
A sticker opposing a possible 3-cent increase to North Dakota's gas tax is displayed on a Bismarck gas pump on March 24, 2025. (Michael Achterling/North Dakota Monitor) North Dakota lawmakers are weighing the first increase to the gas tax in 20 years and an increased electric vehicle fee, with the new tax revenue earmarked for improving local roads. House Bill 1382 proposes to raise the motor fuels tax, including gasoline and diesel, by 3 cents per gallon to 26 cents. The tax was last increased in 2005. Supporters say that even with the increase, the fuel tax would still be lower than neighboring Minnesota, which charges 32 cents per gallon, South Dakota, which charges 28 cents, and Montana, which charges 33 cents. The bill also would raise the vehicle registration fees for electric vehicles from $120 to $150 per vehicle, plug-in hybrids from $50 to $60 and electric motorcycle registration fees from $20 to $25. The registration fees were implemented in 2019. The legislation, sponsored by Rep. Jared Hagert, R-Emerado, would dedicate the estimated $42 million in biennial revenue raised from the tax to a county, city and township road fund. 'The purpose is to create that stable, reliable funding mechanism for our core roads and foundational roads for townships, cities and counties,' Hagert said during a hearing Monday before the Senate Finance and Taxation Committee. He said he's also proposing an amendment to include all townships, cities and counties in the road fund. An original version of the bill included only non-oil-producing counties. Russ Hanson, executive vice president of Associated General Contractors of North Dakota, testified in support of the bill and said the tax increase should really be referred to as a user fee. 'You pay it according to how much you use, so the inherent fairness of it is the main reason for our support,' Hanson said. Mike Rud, president of the North Dakota Petroleum Marketers and Retailers Association, said retailers and convenience store owners are opposed to the tax increase. 'This is a $42 million consumer tax on the driving public. It's that simple,' Rud said. Others testifying in opposition said people living in small towns who commute to larger population centers for work would be adversely affected and bear the brunt of the increase. Don Larson, a lobbyist for General Motors, said the company opposes the section of the bill that increases the electric vehicle registration fees because those fees are already disproportionate with the taxes collected from gas-powered vehicles. He said based on fuel efficiency standards and the average miles driven by North Dakota residents, the average driver buys nearly 340 gallons of gas per year. Based on the current gas tax, he said the gas tax revenue per driver is about $78. With the proposed increase, each driver would pay an average of about $88 per year on gasoline. 'We're already paying more for electric vehicles than a traditional gasoline-powered vehicle would pay for those road fees,' Larson said. In Minnesota, the electric vehicle registration fee is $75 and, in South Dakota, the registration fee is $50. The bill passed the House in February on a 58-35 vote. The committee did not take immediate action Monday. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-03-2025
- Business
- Yahoo
Senate committee advances property tax package supported by Gov. Armstrong
Gov. Kelly Armstrong speaks in support of a property tax bill during a Senate committee hearing on March 17, 2025. (Michael Achterling/North Dakota Monitor) A property tax bill backed by Gov. Kelly Armstrong received a unanimous do pass recommendation Monday immediately following a Senate committee hearing. House Bill 1176, sponsored by Rep. Mike Nathe, R-Bismarck, would give North Dakota homeowners up to a $1,450 primary residence tax credit and cap the amount of property taxes that could be levied locally at a 3% annual increase. The bill would also raise income thresholds for seniors to the Homestead Tax Credit program by $10,000 and expand the state's renters credit for those that qualify from $400 to $600. Tax Commissioner Brian Kroshus estimates the bill would provide an estimated $503.3 million in tax relief to citizens for 2025-27. 'During my campaign, I visited with thousands of constituents from every corner of our state and I can confidently say that this is their top priority and it should still be ours,' Armstrong told the Senate Finance and Taxation Committee. Senate lawmakers weigh questions of fairness in North Dakota property tax debate Other property tax relief bills under consideration by the Senate would reduce property taxes for commercial, agriculture and centrally assessed properties in addition to residential property. Armstrong said focusing on primary residences would bring tax reductions to small business owners in the state indirectly. 'Every small business owner I know in North Dakota lives in North Dakota,' he said. Most of the testimony Monday was in support of the bill, but some including the North Dakota League of Cities and North Dakota Association of Counties advocated for amending the 3% cap for local political subdivisions. Both groups favor a cap tied to the rate of inflation, such as the consumer price index plus 2%. Brandy Madrigga, finance director for Cass County, told lawmakers that salaries and benefits for the county's 277 employees account for the majority of the county budget. She said the average annual raise and cost of living adjustment for county employees is about 5%. 'These increases are necessary to ensure the county can retain skilled personnel and maintain the quality of essential services,' Madrigga said. Nathe said the Legislature could revisit the caps during the 2027 legislative session. The bill also allows local governments to exceed the cap with approval from voters. It also allows local governments to bank unused increases for up to five years. Committee member Sen. Michelle Powers, R-Fargo, said she liked that House Bill 1176 only affects primary residences. The committee advanced the bill to the Senate Appropriations Committee, which could make amendments to the bill, including discussing the 3% caps. The two other property tax bills, House Bill 1575 and House Bill 1168, also would affect out-of-state property owners and those who own multiple properties in the state. The committee held hearings on those bills last week but has yet to make a recommendation. All three bills were passed by the House. SUPPORT: YOU MAKE OUR WORK POSSIBLE SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
17-02-2025
- Politics
- Yahoo
Alabama Senate bill would require adult-size changing tables in some new buildings
Sen. Arthur Orr, R-Decatur, speaks to colleagues on the floor of the Alabama Senate on Feb. 12, 2025 at the Alabama Statehouse in Montgomery, Alabama. Orr sponsors SB 83, that would require the installation of power lifted changing tables in public restrooms. (Brian Lyman/Alabama Reflector) June Wilson approached Sen. Arthur Orr, R-Decatur, with an issue that parents of children with disabilities face: She had nowhere to change her 4-year-old son's diaper. That led to SB 83, a bill that passed the Senate Finance and Taxation Committee on Wednesday that would require powered, height-adjustable, adult-size changing tables to be installed in newly constructed or renovated public buildings starting in 2028. 'The bill is about dignity, accessibility and inclusion,' Wilson said to the committee Wednesday. 'Right now, thousands of Alabamians, children and adults with disabilities, those with medical conditions and their caregivers face an impossible challenge. Many public spaces lack proper facilities to accommodate individuals who cannot safely or comfortably use a standard restroom. As a result, caregivers are often forced to change loved ones on bathroom floors and unsafe conditions or leave events early because there's simply nowhere to go.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX According to 2023 data from the United States Census Bureau, about 430,000 Alabamians reported having an ambulatory disability, with 5,000 of those being under 18 years old. Wilson said her 4-year-old son Lorde was born at 29 weeks and was diagnosed with autism spectrum disorder and developmental delay. While her son may be able to use the restroom independently one day, she said, for now she has limited options to change his diaper in public. 'I have to change Lorde's pull-up in our car in full view of strangers. Other times, I've had to lay him down on a cold, dirty bathroom floor, because there was simply no other option,' she said 'I have been ridiculed for changing my child in my car. Told just to use the bathroom, but there is no bathroom to use.' Portable changing tables exist, but are priced between $1,700 and $10,000. The requirement would be limited to new buildings and complete renovations of existing structures costing $500,000 or more. According to a fiscal note with the bill, the changing tables would cost $15,000 each, and the responsibility to pay would fall on the state and local entities installing the tables. The legislation authorizes grants for installation to public entities that meet high traffic demands, should the Legislature appropriate money to do so. Wilson was joined by two other parents of disabled children, including Amanda Dixon, the mother of an 8-year-old. 'I have been confronted by the police before for changing him out in my car, because it's public indecency,' Dixon said. 'And that shouldn't be an issue I have to face as a mother of a disabled child.' Sen. Vivian Figures, D-Mobile, noted the 2028 effective date and asked if there was a way to provide families with disabled children a temporary solution. 'This is going to take a while, and they need help now,' Figures said. Orr said he is open to adding that into the bill as the process continues. The bill goes to the full Senate. SUPPORT: YOU MAKE OUR WORK POSSIBLE
