North Dakota tribe levies higher tax on oil drillers

AP News
|
Posted: Aug 29, 2017 4:40 PM

BISMARCK, N.D. (AP) — An American Indian tribe whose land accounts for about one-fifth of North Dakota's oil production has raised the tax rate for companies drilling on its land.

The move by Three Affiliated Tribes comes after state lawmakers two years ago changed a law that affects tax rates for drillers. Tribal Chairman Mark Fox says the tribe never agreed to the lower rate of that change.

Fox says the tribe needs a higher tax rate to pay for the consequences of oil development on the Fort Berthold Reservation.

State Tax Commissioner Ryan Rauschenberger says the change violates the agreement.

Industry officials worry that the tribe's move could lead to lower oil production on the reservation. North Dakota trails only Texas in oil production.