Your Biz at BBuz

Dear Teri,

I have read PowerPoint slides from (Tax) Commissioner Cory Fong posted on the Keep it Local North Dakota website. (Note: Keep It Local North Dakota opposes Measure 2, which proposes eliminating property taxes in the state.)

It states: Individual income tax rates would increase 279 percent over 2011 rates, and sales tax would double, and corporate taxes would increase 720 percent.

Does he believe these would happen all at the same time, or does he believe they are all each one option to replace revenue lost if Measure 2 passes? How much oil and gas revenue is the state collecting on a daily basis? Is it the $3 million I have heard from the media?

Susan Beehler

Mandan

Thanks for writing! I contacted Fong, who gave the following answer:

“The 2010 property taxes are the basis for the estimates included in the PowerPoint presentation referenced by your reader. As with any presentation, the message can be difficult to interpret without the benefit of the speaker’s comments.

“As for your question about the tax shift, the estimates we provide in the presentation are for demonstration purposes only. They are not intended to imply that the state Legislature would choose to shift the entire burden of property taxes to only one tax type.

“In other words, each estimate represents the impact if only one tax type was selected to replace the revenue lost if Measure 2 would to pass.

“According to recent statistics, North Dakota is currently collecting oil tax revenue at the rate of

$4.8 million per day.”

Deputy Tax Commissioner Ryan Rauschenberger provided further detail when I asked about January revenue.

He said the department certified to the state treasurer that it collected $150 million in total oil and gas taxes. This breaks down to $79 million in oil extraction tax and

$71 million in gross production tax, he said.