Instructions for Oil and Gas Taxes - North Dakota

This document was released by North Dakota Office of State Tax Commissioner and contains the most recent official instructions for Oil and Gas Taxes .

FAQ

Q: What are oil and gas taxes?
A: Oil and gas taxes are taxes imposed on the extraction and production of oil and gas resources.

Q: How are oil and gas taxes structured in North Dakota?
A: In North Dakota, oil and gas taxes are primarily structured as production taxes and extraction taxes.

Q: What is a production tax?
A: A production tax is a tax imposed on the gross value of oil and gas produced from a well in North Dakota.

Q: What is an extraction tax?
A: An extraction tax is a tax imposed on the net value of oil and gas extracted from the ground in North Dakota.

Q: What is the current production tax rate in North Dakota?
A: The current production tax rate in North Dakota is 10%.

Q: What is the current extraction tax rate in North Dakota?
A: The current extraction tax rate in North Dakota is 6.5%.

Q: Do oil and gas companies in North Dakota pay property taxes?
A: Yes, oil and gas companies in North Dakota are also subject to property taxes on their production and extraction equipment and facilities.

Q: Are there any additional taxes or fees related to oil and gas in North Dakota?
A: Yes, in addition to production and extraction taxes, there may be additional taxes or fees such as oil conditioning, oil inspection, and oil and gas disposal fees.

Q: Who collects and administers the oil and gas taxes in North Dakota?
A: The North Dakota State Tax Department is responsible for the collection and administration of oil and gas taxes in the state.

Q: How are oil and gas tax revenues used in North Dakota?
A: Oil and gas tax revenues in North Dakota are used to fund various state programs and services, including infrastructure projects, education, and environmental conservation.