Strong oil prices to spur higher taxes for ND drillers

BISMARCK, N.D. (AP) — North Dakota’s tax commissioner says oil producers almost certainly will be paying higher state taxes for at least three months beginning June 1 due to strong oil prices.

The increase in state oil tax collections is possible because of a state law that adjusts North Dakota’s oil extraction tax when the three-month average price of a barrel of oil is above a specified “trigger” price of $94.69 a barrel.

WTI crude has been above the price trigger since Feb. 28.

Tax Commissioner Brian Kroshus says “it’s essentially a given that the oil extraction tax trigger will go into effect June 1.”

Categories: North Dakota News