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SB 2208

A BILL for an Act to amend and reenact subsection 9 of section 57-51.1-07.5 and sections 57-51.1-07.7 and 57-51.1-07.8 of the North Dakota Century Code, relating to the state share of oil and gas tax revenue allocations, the municipal infrastructure fund, and the county and township infrastructure fund.

69th Legislative Assembly (2025-26) Introduced by Brad Bekkedahl and 5 co-sponsors

SB 2208 would reallocate North Dakota's oil and gas tax revenue among state, municipal, and county infrastructure funds, but failed passage after committee amendments.

Second reading, failed to pass, yeas 19 nays 27
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WeVote Research Nonpartisan
Bill Summary · SB 2208

Legislative bill overview

SB 2208 would modify how North Dakota allocates oil and gas tax revenue, specifically adjusting the distribution formulas for the state's share, municipal infrastructure fund, and county/township infrastructure fund. The bill underwent amendments in committee but failed its second reading vote (19-27) in February 2025, effectively stalling its passage.

Why this is important

Oil and gas tax revenue is a significant income source for North Dakota, and how it's allocated directly affects funding for infrastructure projects, municipal services, and county operations. Changes to these distribution formulas reshape the financial landscape for local governments and state budgets, impacting everything from road maintenance to community development projects.

Potential points of contention

  • Local vs. state funding balance: Adjusting allocations between state and municipal/county funds creates winners and losers geographically, potentially favoring certain regions over others
  • Volatility in energy markets: Oil and gas revenues fluctuate significantly; reallocating percentages during boom periods may create budgeting challenges during downturns
  • Infrastructure prioritization: Different communities may have competing claims about whether their infrastructure needs are adequately addressed under the new allocation formula

Compiled from official sources — confirm details with the bill’s official record.

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