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HB1358

HB1358. Oil & Gas Production Tax Distribution Kelly Schmidt State Treasurer. Two Taxes. Gross Production Tax (GPT) - 5% Extraction Tax (ET) – 6.5% Total Tax = 11.5% HB1358 relates to Gross Production only. Hub cities & HUB CITY schools. Population 12,500 or more

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HB1358

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  1. HB1358 Oil & Gas Production Tax Distribution Kelly Schmidt State Treasurer

  2. Two Taxes • Gross Production Tax (GPT) - 5% • Extraction Tax (ET) – 6.5% Total Tax = 11.5% • HB1358 relates to Gross Production only

  3. Hub cities & HUB CITY schools • Population 12,500 or more • At least 1% of employment engaged in mining as reported by Job Service, annually. • Fiscal Year 2014 • Williston – 43% • Dickinson – 21% • Minot – 6%

  4. Hub city SCHOOLS allocations FY 2014 Williston $125,000 43 $5.375 Million/year Dickinson Divide by 12 = Monthly Distribution Amount $125,000 21 $2.625 Million/year Minot Divide by 12 = Monthly Distribution Amount $125,000 6 $750,000/year Divide by 12 = Monthly Distribution Amount

  5. Fiscal year • Fiscal Year 2013 (FY2013) – ends June 30, 2013 • Fiscal Year 2014 (FY2014) – begins July 1, 2013 • Produced in July • Collected in August • Distributed in September to Counties/Cities/Schools

  6. Fiscal yeaR • Current Formula applies to all distributions through August 2013 • New formula applies to distributions you receive beginning September 2013

  7. New formula (hb1358) • 2 tiers for split between state & county • First $5 Million – 0/100 • All $$ Over $5 Million - 75/25

  8. New formula (hb1358) • Two distribution formulas: • Counties less than $5 Million • Counties over $5 Million • State Treasurer will do ALL allocations to cities and schools

  9. New formula (hb1358) • 8 Counties Less than $5 Million FY 2013 • Bottineau • Golden Valley • McHenry • Renville • Slope • Ward • Mercer • McLean

  10. New formula (hb1358) • Counties Less than $5 Million • 45% General Fund • 35% Schools (based on ADA) • 20% Cities

  11. New formula (hb1358) • 9 Counties Over $5 Million FY 2013 • Billings • Bowman • Burke • Divide • Dunn • McKenzie • Mountrail • Stark • Williams County list is subject to change in 2nd year of biennium

  12. New formula (hb1358) • Counties Over $5 Million • 60% General Fund • 5% Schools (based on ADA) • 20% Cities • 3% Townships (miles) • 3% Townships (pooled/shared equally) • 9% Hub Cities (pooled/split)

  13. ADA Certifications • School districts will be certifying their ADA directly to the Office of State Treasurer. • My office will be sending out certification requests in the next in the next 7-10 days

  14. Distribution information • The formula flow chart and distribution amounts for Oil/Gas producing Counties, Cities and Schools can be found on the State Treasurer’s website at www.nd.gov/ndtreas

  15. School Construction Loans • The School Construction Loan is approved by the University and Schools Land Board • Loan payments are deducted from the monthly GPT Payment (similar to the program available to schools in coal producing counties) • Further details are pending

  16. Questions ? CONTACT • Kelly Schmidt, State Treasurer • Jeb Oehlke, Deputy Treasurer • Ryan Skor, Accounting Manager 701-328-2643

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