Forecast: North Dakota Oil Tax Revenue Drops $1 Billion

Posted March 20, 2015 at 5:05am

The Jamestown Sun reports that “North Dakota’s oil tax revenues took another nearly $1 billion hit in the latest revenue forecast released Wednesday, but the picture for general fund revenues was nearly $131 million rosier than in January, leaving some lawmakers scratching their heads as they pointed to slumping oil prices and a drop in drilling activity.  

“The forecast, prepared by the Office of Management and Budget with consultant Moody’s Analytics, is the first since a Jan. 29 forecast from Legislative Council predicted the state would collect $4.3 billion in oil and gas revenues next biennium — $4 billion less than the December forecast used in Gov. Jack Dalrymple’s budget proposal.”  

“Wednesday’s forecast drops oil tax collections by another $870 million in 2015-17, to $3.4 billion, and by $108 million in the current biennium. That assumes the state’s ‘small trigger’ oil extraction tax exemption will last through June and the “big trigger” exemption will be in effect for 11 months of the next biennium.”