North DakotaHB 14832025 Regular SessionHouse

AN ACT to amend and reenact subsection 4 of section 57-51.1-03 of the North Dakota Century Code, relating to the oil extraction tax rate reduction for oil produced from a new well drilled and completed outside the Bakken and Three Forks formations; to provide for a legislative management study; and to provide an effective date.

Sponsored By: Craig Headland (Republican)

Signed by Governor

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 1 benefits, 0 costs, 0 mixed.

Oil producers get broader tax relief

For taxable production beginning July 1, 2025, qualifying North Dakota oil producers get a 2% extraction tax rate. The rate applies to the first 300,000 barrels produced during the first 36 months after a new well's completion. The tax is based on the oil's gross value at the well. Wells must be drilled and completed outside the Bakken and Three Forks formations; the old 10-mile distance rule is removed. Wells within reservation boundaries, on specified trust properties outside reservations, or straddling reservation trust land require tribal approval. The tribe must make an irrevocable choice by written notice to the Tax Commissioner. The lower rate starts with production in the month after the commissioner receives that notice. Separately, lawmakers must study a possible extraction tax exemption for individual stripper wells or stripper well properties during 2025–26. The study must assess qualifying wells, production, fiscal effects, and alternative tax policies. Findings and any proposed legislation must go to the Seventieth Legislative Assembly; the study itself creates no exemption.

Sponsors & Cosponsors

Sponsor

  • Craig Headland

    Republican • House

Cosponsors

  • Dick Anderson

    Republican • House

  • Jared C. Hagert

    Republican • House

  • Ben Koppelman

    Republican • House

  • Jeremy Olson

    Republican • House

  • Daniel R. Vollmer

    Republican • House

  • Greg Kessel

    Republican • Senate

  • Scott Meyer

    Republican • Senate

  • Dean Rummel

    Republican • Senate

  • Paul J. Thomas

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 206 • No: 18

House vote • 4/7/2025

Second reading, passed, yeas 80 nays 8

Yes: 80 • No: 8

Senate vote • 3/31/2025

Second reading, passed as amended, yeas 42 nays 3

Yes: 42 • No: 3

House vote • 2/7/2025

Second reading, passed, yeas 84 nays 7

Yes: 84 • No: 7

Actions Timeline

  1. Filed with Secretary Of State 04/17

    4/21/2025House
  2. Signed by Governor 04/15

    4/18/2025House
  3. Sent to Governor

    4/14/2025House
  4. Signed by Speaker

    4/14/2025House
  5. Signed by President

    4/9/2025Senate
  6. Second reading, passed, yeas 80 nays 8

    4/7/2025House
  7. Concurred

    4/7/2025House
  8. Returned to House (12)

    4/1/2025House
  9. Second reading, passed as amended, yeas 42 nays 3

    3/31/2025Senate
  10. Amendment adopted, placed on calendar

    3/27/2025Senate
  11. Reported back amended, do pass, amendment placed on calendar 6 0 0

    3/26/2025Senate
  12. Committee Hearing 10:00

    3/12/2025Senate
  13. Introduced, first reading, referred Finance and Taxation Committee

    2/13/2025Senate
  14. Received from House

    2/10/2025Senate
  15. Second reading, passed, yeas 84 nays 7

    2/7/2025House
  16. Amendment adopted, placed on calendar

    2/6/2025House
  17. Reported back amended, do pass, amendment placed on calendar 11 2 1

    2/5/2025House
  18. Committee Hearing 11:00

    2/4/2025House
  19. Introduced, first reading, referred Finance and Taxation Committee

    1/20/2025House

Bill Text

  • Adopted by the House Finance and Taxation Committee

  • Enrollment

  • FIRST ENGROSSMENT

  • FIRST ENGROSSMENT with Senate Amendments

  • INTRODUCED

  • Prepared by the Legislative Council staff for Senator Walen

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