This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

ND Oil Tax Restructuring Measure Meets Opposition

By JAMES MacPHERSON

BISMARCK, N.D. (AP) â¿¿ A Republican-backed measure aimed at closing loopholes enjoyed by oil companies in exchange for lower tax rates in North Dakota could hurt future funding for such things as schools and state employees, education and public worker groups told lawmakers Tuesday.

"We know that the cost of education will continue to increase and this decreases future revenue," North Dakota Education Association spokesman Kayla Pulvermacher said of the proposal.

Oil industry officials told the Senate Finance and Taxation Committee Tuesday that the state's dynamic tax policy adds more risk to an already risky and costly business and could cause drillers to move rigs elsewhere. Oil officials also cautioned lawmakers to not become overly reliant on oil revenues because of the boom-bust nature of the industry.

Sen. Dwight Cook, R-Mandan, who chairs the committee, told fellow lawmakers that his proposal is an attempt to bring tax certainty to the oil industry and the state, while closing loopholes and adding drilling incentives.

The measure would charge oil companies an effective tax rate of 9.5 percent on wells drilled after 2017 instead of the 11.5 percent tax rate they're charged now. Democrats have called the measure radical and reckless, saying it would cost the state more than $595 million in lost revenue in the first five years.

Lynn Helms, director of the state Department of Mineral Resources, said the state does not have a position on the measure.

Cook's proposal, which he crafted with the help of oil companies, would cut the exemption for so-called stripper wells that the state Tax Department says is costing North Dakota about $50 million in revenue each year. The 1980s-era law cuts taxes for low-producing oil wells to keep them pumping but it also has been applied in recent years to some gushers in North Dakota because they are near the weaker wells.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs