ND HB1046

Imposes a 2% tax on all potash produced in North Dakota, assessed against the sales price or calculated using the annual average potash producer price index ($357.10 per ton for July 2011-June 2012).

Imposes a 4% subsurface mineral tax on gross value of all byproducts produced during potash processing, including 40+ mineral elements such as aluminum, copper, gold, lithium, and rare earth metals.

Tax payments are in lieu of all state, county, and local ad valorem taxes on potash leases, production equipment, and property rights, but land and processing plants remain subject to local property taxes.

Establishes tax administration procedures including monthly filing and payment requirements by the 25th of the following month, audit authority for the tax commissioner, and interest and penalties for late payment or non-filing.

Effective for taxable production occurring after June 30, 2011, and directs the legislative management to study potash mining and taxation issues during the 2011-12 interim.