North Dakota’s tax commissioner says oil producers almost certainly will be paying higher state taxes for at least three months beginning June 1 due to strong oil prices.
The increase in state oil tax collections is possible because of a state law that adjusts North Dakota’s oil extraction tax when the three-month average price of a barrel of oil is above a specified “trigger” price of $94.69 a barrel. WTI crude has been above the price trigger since Feb. 28.
Tax Commissioner Brian Kroshus says “it’s essentially a given that the oil extraction tax trigger will go into effect June 1.”
AP
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