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HB 1279

AN ACT to amend and reenact sections 57-60-02, 57-60-02.1, 57-60-02.2, 57-60-14, and 57-61-01 of the North Dakota Century Code, relating to a partial exemption from the coal conversion facilities tax and the imposition of a lignite research tax, allocation of the coal conversion facilities privilege tax and the lignite research tax, and an exemption from the coal severance tax; to repeal section 57-60-02.2 of the North Dakota Century Code, relating to the exemption from the coal conversion facilities tax and the imposition of a lignite research tax; to provide an effective date; to provide a contingent effective date; and to provide an expiration date.

69th Legislative Assembly (2025-26) Introduced by Mike Berg and 10 co-sponsors

North Dakota partially exempts coal conversion facilities from taxes and establishes a lignite research tax while reallocating coal-related tax revenues among state programs.

Filed with Secretary Of State 05/06
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Bill Summary · HB 1279

Legislative bill overview

HB 1279 modifies North Dakota's tax structure for coal-related industries by creating a partial exemption from the coal conversion facilities tax and establishing a lignite research tax. The bill reallocates how these tax revenues are distributed and exempts certain entities from the coal severance tax, while repealing previous exemption provisions.

Why is this important

North Dakota is a significant lignite coal producer, and this tax structure directly affects the profitability and competitiveness of coal-to-energy operations in the state. The changes influence both state revenue allocation and the economic viability of the coal industry, which employs thousands and funds regional infrastructure and schools through tax revenues.

Potential points of contention

  • Industry favoritism vs. fiscal responsibility: The partial exemptions and tax relief measures may reduce state revenue needed for public services, or conversely, may be necessary to keep coal operations competitive against cheaper energy alternatives.
  • Research funding priorities: The creation of a lignite research tax redirects money toward coal research; critics may question whether public funds should subsidize fossil fuel research given climate concerns, while supporters argue it's essential for technological advancement in a key state industry.
  • Revenue allocation changes: Reallocating existing tax revenues between different purposes (conversion facilities tax vs. research tax) affects which state programs and agencies receive funding, creating winners and losers in the budget process.

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

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