Council amends gas tax proposal to include all oil producing counties and townships

The North Dakota Senate Finance and Taxation Committee convened on April 16, 2025, to discuss significant amendments to the proposed gas tax legislation. The primary focus of the meeting was a proposed increase of three cents per gallon at the gas pump, with the revenue distribution aimed at supporting local governments.

Under the initial proposal, the revenue from the gas tax was to be divided equally, with one cent allocated to cities, one cent to counties, and one cent to townships. However, the original draft excluded townships and counties located in oil-producing regions from receiving these funds. After deliberation among committee members, it was decided to amend the proposal to ensure that all townships and counties in oil-producing areas would be eligible for funding.

The amendment, detailed on page four of the proposal, specifies that the state treasurer will allocate two-thirds of the revenue—two cents—to cities and counties, with the previous exclusion of non-oil producing areas now removed. This change aims to provide equitable support across all regions, including those involved in oil production.

The committee's discussions reflect a commitment to revising the gas tax proposal to better serve the needs of local governments throughout North Dakota. The next steps will involve further review and potential voting on the amended legislation in upcoming sessions.