Legislature Must Approve Governor Burgum’s Flat Tax Plan If It Passes A Flat Tax For Oil

The oil industry has been vaccinated against the anti-"out-of-state" plague that has infected the legislature this year. All North Dakotans must be granted tax reform in the name of fairness.

Yesterday, the House voted 72-21 to eliminate the oil tax trigger.

From the Bismarck Tribune:

“The state House of Representatives voted 72-21 on Thursday to approve House Bill 1286, which would abolish a requirement that oil producers pay a heftier tax rate when the commodity’s price hits high levels. The bill will head to the Senate.

The proposal sponsored by Rep. Craig Headland, R-Montpelier, makes an exception for oil wells that touch the Fort Berthold Reservation. Mandan, Hidatsa and Arikara Nation Chairman Mark Fox previously told lawmakers the so-called oil tax trigger presents positive opportunities for his tribe.”

Basically, this bill turns the oil tax into a flat tax - except for on the reservation, because the tribes wanted to keep the higher tax rate - which seems odd since that would put them at a competitive disadvantage to an oil well just a few miles away.

(Side Note: Interestingly, six ultra-conservative Republicans voted against the removal of the oil tax trigger in HB …