ND HB1303

Establishes an extraction tax on natural gas produced in North Dakota at a rate of 5.2 cents per thousand cubic feet, adjusted annually based on the gas fuels producer price index with a denominator of 75.7.

Tax department determines the gas base rate adjustment annually and provides written notice to affected producers by June first, with adjustments made by administrative rule if the index is substantially revised or discontinued.

Tax revenue is paid to the state treasurer, with amounts remaining after constitutional allocations distributed to producing counties for deposit in county road and bridge funds for maintenance and enhancement.

Creates a separate oil and gas infrastructure maintenance excise tax at one percent of gross value of oil extracted and eight-tenths of one cent times the gas base rate adjustment, with identical administration and allocation provisions as the extraction tax.

Act becomes effective for taxable events occurring after June 30, 2011.