What is the current severance tax rate for oil and gas produced in North Dakota?
The gross production tax rate on gas is subject to a price index change on July 1 each year, the rate through June 30, 2008 is $.1428 per mcf. The rate through June 30, 2009 is $.1476 per mcf. The gross production tax rate on oil is 5% of the gross value and the oil extraction tax rate is 6.5% of the gross value; 4% if the well qualifies for a reduced rate; 2% from qualifying wells in the Bakken formation; and 0% if the well qualifies for an exemption.
The gross production tax rate on gas is subject to a price index change on July 1 each year, the rate through June 30, 2004 is $.0615 per mcf. The rate through June 30, 2005 is $.1037 per mcf. The gross production tax rate on oil is 5% of the gross value and the oil extraction tax rate is 6.5% of the gross value; 4% if the well qualifies for a reduced rate and 0% if the well qualifies for an exemption.
