The proposed amendments to Senate Bill No. aim to modify section 57-06-17.1 of the North Dakota Century Code, which pertains to the tax exemption for carbon dioxide pipelines. The bill introduces a new exception to the existing tax exemption, specifying that property, excluding land, is exempt from taxation during construction and for the first ten full taxable years following initial operation if it consists of a pipeline and necessary associated equipment for the transportation or storage of carbon dioxide. However, the exemption will not apply to interstate pipelines and associated equipment that transport carbon dioxide into the state for secure geologic storage.

Additionally, the bill clarifies that the exemption is subject to certain limitations and explicitly states that it does not cover the use of carbon dioxide in enhanced recovery of oil or natural gas. The effective date for this amendment is set for taxable years beginning after December 31, 2024.

Statutes affected:
INTRODUCED: 57-06-17.1
Prepared by the Legislative Council staff for Senator Magrum: 57-06-17.1
FIRST ENGROSSMENT: 57-06-17.1