Senate Bill No. 2318 Summary

• Exempts sales and use taxes on tangible personal property used to construct or expand systems that compress, gather, collect, store, transport, or inject carbon dioxide for enhanced oil or natural gas recovery in North Dakota.

• Requires owners to obtain a certificate from the tax commissioner before purchase to receive the exemption at point of sale, or pay taxes and apply for refund afterward.

• Classifies carbon dioxide capture systems and equipment directly used for enhanced oil or natural gas recovery as personal property exempt from ad valorem taxes, except for taxes on land where the equipment is located.

• Directs the legislative management to study the oil extraction tax exemption for incremental production from tertiary recovery projects using carbon dioxide during the 2015-16 interim, with analysis of benefits, costs, and fiscal effects for the state.

• Makes Sections 1 and 2 effective for tax periods beginning after June 30, 2015, and Section 3 effective for taxable years beginning after December 31, 2014.