ND chamber against proposed oil tax exemption

North Dakota Chamber of Commerce against tax break for oil destined for state oil refineries

Associated Press

BISMARCK, N.D. (AP) -- The North Dakota Chamber of Commerce is protesting a bill that would exempt oil drillers from paying an extraction tax if the crude is processed at a North Dakota refinery.

Chamber spokesman Bill Shalhoob told the House Taxation and Finance Committee on Monday that construction of new refineries is being held up by environmental hurdles — not burdensome taxation or lack of profits.

The bill would exempt drillers from paying the 6.5 percent extraction fee with the goal of promoting the construction of new refineries in the state.

The Tesoro Corp. plant near Mandan is the state's sole oil refinery, though at least two others have been proposed in western North Dakota.

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