Gov. Doug Burgum today signed legislation that ratifies the historic compact he signed last month with Mandan, Hidatsa and Arikara (MHA) Nation Chairman Mark Fox to change how the state and tribe share tax revenue from new oil and gas activity on trust and fee lands.
“This historic legislation is the result of nearly two years of good-faith dialogue and collaboration between tribal and legislative leaders, the Governor’s Office, industry representatives and the state tax department. Finalizing this agreement sends a clear signal that North Dakota supports a stable tax and regulatory environment, which will help us compete with shale oil plays in other states and help the tribe address infrastructure needs and other priorities,” said Burgum, whose five strategic initiatives include strengthening tribal partnerships. “We look forward to continued collaboration with all of the tribal nations in North Dakota based on mutual respect and understanding.”
Senate Bill 2312 was introduced by Sen. Jordan Kannianen and co-sponsored by House Majority Leader Chet Pollert and Senate Majority Leader Rich Wardner. The bill received wide bipartisan support, passing 40-5 in the Senate and 84-8 in the House of Representatives.
Under the ratified compact, the current 50-50 tax revenue split will change so that the tribe will receive 80 percent of the production and extraction tax revenue from new wells on tribal trust lands and the state will receive 20 percent of the revenue. On fee land, 80 percent of the revenue will go to the state and 20 percent to the tribe.
Burgum today also signed Senate Bill 2257, which enables tax agreements to be signed by the governor and tribes for the administration and collection of the alcoholic beverage wholesale tax, tobacco products wholesale tax, and alcoholic beverages gross receipts tax.
Burgum expressed his gratitude for members of the interim Tribal Taxation Issues Committee whose work was instrumental to the compact and legislation. The committee consisted of House and Senate leadership from both parties, Finance and Taxation Committee chairmen Sen. Dwight Cook and Rep. Craig Headland, Tax Commissioner Ryan Rauschenberger, Indian Affairs Commission Executive Director Scott Davis, Lt. Gov. Brent Sanford and Burgum as chair.