The proposed amendments to House Bill No. aim to revise several sections of the North Dakota Century Code concerning coal conversion facilities. Key changes include the introduction of a partial exemption from the coal conversion facilities tax and the establishment of a lignite research tax, along with the allocation of these taxes. The bill seeks to repeal section 57-60-02.2, which previously addressed the exemption from the coal conversion facilities tax and the lignite research tax. Additionally, the effective dates for the imposition of these taxes have been extended through June 30, 2031, while maintaining a structured reduction in the coal conversion state share tax over the coming years. Furthermore, the bill outlines the allocation of revenue from coal conversion facilities, specifying that 15% will be directed to counties and 85% to the state, with a portion of the state allocation earmarked for the lignite research fund and the legacy fund. It mandates that counties will not receive less funding than the previous year, requiring county auditors to report discrepancies to the state treasurer, who must verify and distribute necessary funds by March 1. The bill also maintains a severance tax rate of thirty-seven and one-half cents per ton of coal severed for sale or industrial purposes, while allowing county commissioners to grant tax exemptions of up to seventy percent for coal or commercial leonardite mining operations, with the exemption period not extending beyond June 30, 2031.

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