The bill amends the North Dakota Century Code to revise the taxation framework for coal conversion facilities, introducing a partial exemption from the coal conversion facilities tax and establishing a lignite research tax. Key changes include allowing county commissioners to grant partial or complete tax exemptions for electrical generating and coal gasification plants, while also clarifying tax rates for various coal conversion facilities. The bill extends the effective date for these taxes through June 30, 2031, and includes provisions for a contingent effective date and an expiration date. It also mandates that any tax collected from exempt facilities be allocated entirely to the respective county, enhancing local revenue management.

Additionally, the bill outlines a new tax structure for coal severance, imposing a tax of thirty-seven and one-half cents per ton of coal severed for sale or industrial purposes, which replaces any sales or use taxes. It specifies the allocation of revenue from coal conversion facilities, ensuring that 15% goes to counties and 85% to the state, with designated portions for the lignite research fund and the legacy fund. The bill includes several deletions from current law, such as the repeal of specific provisions related to the calculation and distribution of funds to counties, and it ensures that counties will not receive less revenue than the previous year. The effective dates for various sections are staggered, with some provisions becoming effective for taxable production after June 30, 2025, and others after June 30, 2026.

Statutes affected:
INTRODUCED: 57-60-02, 57-60-02.2, 57-60-14, 57-61-01
Prepared by the Legislative Council staff for Senator Weber: 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, 57-61-01
Prepared by the Legislative Council staff for Representative Hagert: 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, 57-61-01
Enrollment: 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, 57-61-01