Oil and gas development goes a long way funding our state’s priority and future.
At more than $3.25 billion paid in taxes, oil and gas production and extraction taxes accounted for 54 percent of all taxes collected by the state in 2014. This is an increase of 1,699 percent since 2006.
A majority of these tax revenues are directed toward funds used to fund specific priorities including:
The industry paid a total of $157 million during the 2014 fiscal year to the Common Schools Trust Fund. Ten percent of oil extraction taxes are also deposited each month into the Foundation Aid Stabilization Fund, which had a balance of $588 million as of April 1, 2015.
$325.9 million in fiscal year 2014 were deposited into the Strategic Investment and Improvements Fund, which helps provide one-time expenditures relating to improving state infrastructure or for initiatives to improve the efficiency and effectiveness of state government. Up to $240 million may be deposited into the Oil and Gas Impact Fund, a portion of which is awarded as grants to eligible counties, cities, and ambulance districts for needs resulting from impacts from oil and gas development activities.
Thirty percent of oil and gas extraction and production taxes are deposited into the Legacy Fund to provide for North Dakota’s future. As of April 22, 2015, this fund included more than $3 billion. Principal and earnings from this fund may not be speant until after June 30, 2017 and spending of the principal of this fund cannot be approved without vote of at least two-thirds of the state legislature.
Oil and gas taxes also fund the Property Tax Relief Fund, which helped fund education mill levy reduction grants, which, in turn, were meant to reduce property taxes. Although the fund was suspended for the 2013-2015 biennium, the fund contained $657 million as of April 1, 2015.
Oil and gas taxes help fund up to $15 million of the Outdoor Heritage Fund, which provides grants:
Another 20% of oil extraction taxes are deposited into the Resources Trust Fund, which assists with the construction of water-related projects and programs for Energy Conservation. This fund received $390 million in oil extraction taxes during the 2011-2013 biennium.
Up to $22 million of oil and gas production and extraction taxes are deposited into the State Disaster Relief Fund, which provides funding for disasters in the state. As of April 1, 2015, the fund had a balance of $84 million.
A portion of oil and gas taxes that aren’t designated into special funds such as those listed above go into the State’s General Fund, which is also used to fund roads, infrastructure, schools, law enforcement and other priorities.
For more information about the distribution of oil and gas taxes, visit the North Dakota State Treasurer’s Site.
While many of these funds are directed toward impacts in western North Dakota, all of North Dakota’s counties benefit from oil and gas taxes: