Bill
HB 1576
Directs a 2025–26 interim study of oil and gas tax revenue allocations to local governments to gauge infrastructure impacts and propose changes; bill died in Senate committee.
Status summary
- Bill: HB 1576 (North Dakota)
- Title: A bill to provide for a legislative management study of the oil and gas tax revenue allocation formulas
- Sponsors (bill text): Reps. Kempenich, B. Anderson, Headland, Steiner; Sens. Bekkedahl, Kessel, Rummel, Hogue
- Introduced: Filed 12/11/2024
- Key procedural outcome: Passed the House and was transmitted to the Senate; the measure ultimately died in Senate committee at sine die adjournment (reported 05/05/2025).
Purpose and intent
- Directs the Legislative Management to undertake a focused study during the 2025–2026 interim on the formulas used to allocate oil and gas tax revenues.
- The study is intended to assess whether current distribution formulas appropriately address impacts of oil and gas activity on political subdivisions (local governments) and to identify adjustments needed to meet infrastructure and other development‑related needs stemming from energy development.
Key provisions
- Study charge: Legislative Management shall consider:
- Current and historical allocations of oil and gas tax revenues to political subdivisions.
- What constitutes an appropriate level of oil and gas tax revenue allocations to political subdivisions, taking into account infrastructure and other impacts caused by oil‑ and gas‑related development.
- Deliverable: Legislative Management must report findings and recommendations — including any proposed legislation required to implement those recommendations — to the Seventieth Legislative Assembly.
- Timing: Study to be conducted during the 2025–26 interim (the period between legislative sessions).
Who would be affected
- Political subdivisions that receive oil and gas tax revenues (counties, cities, school districts, townships and other local units of government in producing or impacted areas).
- State legislative budgeting and fiscal policy makers ( Legislative Management and members of the Seventieth Legislative Assembly).
- Indirectly: oil and gas industry stakeholders and residents of communities affected by energy development, since allocation changes could shift local revenue flows and infrastructure funding.
Potential impacts and next steps
- If completed and acted upon, the study could lead to recommended legislative changes to allocation formulas that alter the distribution of oil and gas tax revenues among state and local governments.
- Changes could affect local budgets, capital/infrastructure planning, and how costs associated with energy development are shared.
- Because the bill did not advance out of the Senate committee before adjournment, no statutory change was enacted; the findings and any legislative recommendations therefore did not reach the Seventieth Assembly under this bill.
Additional notes
- The bill is narrowly procedural (a study directive) rather than substantive tax or distribution legislation; its purpose was to produce policy analysis and legislation recommendations, not to change allocation rules directly.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
