1 / 21

HB 1358

HB 1358. Oil & Gas Production Tax Distribution Office of State Treasurer. Two Taxes. Gross Production Tax (GPT) - 5% Extraction Tax (ET) – 6.5% Total Tax = 11.5% HB1358 relates to Gross Production only. Fiscal year. Fiscal Year 2014 (FY2014) – began July 1, 2013 – ends June 30, 2014

ruana
Download Presentation

HB 1358

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. HB 1358 Oil & Gas Production Tax Distribution Office of 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. Fiscal year • Fiscal Year 2014 (FY2014) – began July 1, 2013 – ends June 30, 2014 • Oil Producedin July • Taxes Collectedin August • Revenue Distributedin September to Counties/Cities/ Schools • HB 1358 formula applies to distributions you received beginning September 2013

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

  5. current formula (hb1358) • Two distribution formulas: • Counties less than $5 Million • Counties over $5 Million • State Treasurer does ALL allocations to cities and schools FY 2014 and later • Counties responsible for handling prior year adjustments in the proper manner

  6. current formula (hb1358) • 8 Counties Less than $5 Million FY 2013 • Bottineau* • Golden Valley • McHenry • Renville • Slope • Ward • Mercer • McLean * Bottineau County is on pace to receive over $5M in FY 2014 so will most likely move into the “Greater than $5M” portion of the formula for FY 2015

  7. current formula (hb1358) • Counties Less than $5 Million • 45% General Fund • 35% Schools • 20% Cities

  8. current 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 (Bottineau County will most likely move into this group)

  9. Current formula (hb1358) • Counties Over $5 Million • 60% General Fund • 5% Schools • 20% Cities • 3% Townships (allocated by miles) • 3% Townships (pooled & shared equally) • 9% Hub Cities (pooled & split)

  10. current formula (hb1358) • Counties Over $5 Million • 9% to Hub Cities: • Williston – 60% • Dickinson – 30% • Minot – 10%

  11. Projected Distributions for FY2014* *Projections based on actual distributions through first five months of FY2014, then using the November production numbers for the remaining seven months.

  12. Projected Distributions for FY2014* - Hub cities *Projections based on actual distributions through first five months of FY2014, then using the November production numbers for the remaining seven months.

  13. Potential formula changes • Changing the County/State Percentage for amounts over $5 million (Currently 25%/75% County/State) • Potential Changes: • 50/50 • 60/40 County/State

  14. Potential formula changes • Effects of changing the allocation percentage: • Counties that receive less than $5 million wouldn’t see any changes • Counties receiving over $5 million would see a potentially substantial increase in distributions • It would take considerably longer to fill State Share “buckets” (ie. GF, PTRF, Disaster Relief, SIIF) • As final “bucket”, the Strategic Investments & Improvements Fund (SIIF) would see a potentially significantly reduced total contribution

  15. Projected % increases if formula adjusted to 50/50

  16. Projected % increases if formula adjusted to 60/40

  17. Projected % increases - Hub cities Portion received from 1/5 GPT remains the same. Portion received from 4/5 GPT (9%) increases: *Projections based on actual distributions through first five months of FY2014, then using the November production numbers for the remaining seven months.

  18. HUB CITY school Districts • Would not see any increase in oil & gas distributions under this change. • Currently receive: • Williston - $5.375 Million/year • Dickinson - $2.625 Million/year • Minot - $750,000/year

  19. 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 • Various search options are available. • Note: Oil/Gas was originally a quarterly distribution. Treasurer Schmidt changed this distribution to monthly in December 2007.

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

More Related