North Dakota is Stuffing its Coffers
The U.S. state of North Dakota gathered around US$ 1.7 billion in oil tax revenue in the past fiscal year. The energy-producing state has beaten their original forecast February 2011 and is on track to collect between US$ 3.5 billion and US$ 4 billion in the entire 2011 to 2013 biennium.
The February 2011 forecast predicted North Dakota would collect $2.041 billion in oil extraction and gross production taxes during the entire 2011 to 2013 biennium. Increases in oil production played a major role in the growth of tax revenues. To analyze a striking comparison, in the entire 2001 to 2003 biennium, North Dakota collected only US$ 119.5 million in oil tax revenue. Oil firms pay a 6.5% extraction tax and a 5% gross production tax to the state of North Dakota. The North Dakota Legacy Fund is one of the beneficiaries from oil extraction tax revenue. [Content protected for Sovereign Wealth Fund Institute Standard subscribers only. Please subscribe to view site content.]