This bill amends several sections of the North Dakota Century Code concerning the taxation of coal conversion facilities and related exemptions. Key changes include the imposition of a lignite research tax, which replaces a portion of the coal conversion facility tax for certain facilities, and the establishment of exemptions for electrical generating plants and coal conversion facilities from specific taxes for a period of five years from the date of first taxable production. Additionally, the bill allows county commissioners to grant partial or complete exemptions from the remaining tax for both electrical generating plants and other coal conversion facilities, with the stipulation that any tax collected from these exempt facilities must be allocated entirely to the respective county.

The bill also outlines the allocation of revenue from coal conversion taxes, ensuring that counties receive at least the same amount as the previous year, and specifies that the severance tax on coal remains unchanged through June 30, 2026. After this date, the allocation structure will shift, with a greater percentage of tax revenue directed to the state general fund. The effective date for the new tax provisions is set for taxable production beginning after June 30, 2025.

Statutes affected:
INTRODUCED: 57-60-02, 57-60-02.2, 57-60-14, 57-61-01