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North Dakota House defeats bill to increase oil extraction tax

BISMARCK — The North Dakota House defeated a bill on Friday, Feb. 8, to increase the oil extraction tax, the second such proposal that has failed during this legislative session.

House members voted 76-12 against a bill that would have raised the oil extraction tax from 5 percent to 6.5 percent.

Rep. Pamela Anderson, D-Fargo, said she introduced House Bill 1449 to restore the tax to the level it was before legislators reduced it in 2015. The bill was estimated to provide about $600 million in additional revenue for 2019-21.

Republican opponents argued the oil tax overhaul in 2015 also removed price-based tax breaks for the industry, which has led to the state collecting an additional $942 million from the oil industry since 2016.

A similar bill failed in the Senate.