Published April 27, 2011, 12:06 PM
Exemption for oil wells costing ND $30M a year
BISMARCK (AP) — North Dakota's tax department says a law that slashes taxes for low-producing oil wells to keep them pumping also is being applied to some gushers, and it's costing the state an estimated $30 million a year.
BISMARCK (AP) — North Dakota's tax department says a law that slashes taxes for low-producing oil wells to keep them pumping also is being applied to some gushers, and it's costing the state an estimated $30 million a year.
The 1980s-era law excuses higher-producing wells from paying extraction taxes because they are near the weaker wells but drilling in the same oil pool.
Attempts to cut the exemption have failed in the past three legislative sessions.
North Dakota Petroleum Council President Ron Ness says the law helped spur oil development. But he says it points to a need for an overhaul of the state's tax code.
Tags: oil, news, updates, energy, petroleum, local
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