ND SB2226

Tax collection agreements between the tax commissioner and tribes must obtain approval from the governor, tribal governing bodies, and a majority of both houses of the legislature before becoming effective.

Tax collection agreements must include an expiration date no later than 16 years after the effective date, with expiration occurring on March 31st of an odd-numbered year.

The governor may enter separate agreements with the Three Affiliated Tribes, Standing Rock Sioux Tribe, and Turtle Mountain Band of Chippewa Indians regarding oil and gas taxation and regulation within reservation boundaries and trust properties outside reservations, subject to legislative confirmation.

Oil extraction tax on trust lands may not exceed 6.5 percent but can be reduced through negotiation; revenues from trust land production are evenly split between tribes and the state, while non-trust land production revenues are split 50-50 with the tribe.

Tribes must agree not to impose additional tribal taxes or fees during the agreement term; wells drilled during the agreement are subject to its terms for the well's lifetime and remain subject to state regulatory provisions.