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ND SB2373

Bill

Status

Introduced

1/26/2015

Primary Sponsor

David O'Connell

Click for details

Origin

Senate

64th Legislative Assembly

AI Summary

  • Owners of severed mineral interests receiving oil or gas royalty payments must pay 50 percent of property taxes on the land (excluding improvements) to the county auditor during taxable years when production occurs

  • Multiple owners of severed minerals are jointly and severally liable for the required tax payments

  • Standard property tax laws apply to these payments, including early payment discounts, payment deadlines, penalties, interest, liens, and tax foreclosure procedures

  • If a mineral interest faces tax foreclosure due to non-payment, the surface estate owner has the right of first refusal to acquire the mineral interest

  • Amounts collected by the county auditor are paid to the surface owner as a property tax refund, effective for taxable years beginning after December 31, 2014

Legislative Description

A BILL for an Act to provide for payment of a share of property taxes on land by the owners of severed mineral interests if a producing oil or gas well is generating royalty payments to those owners; and to provide an effective date.

Last Action

Second reading, failed to pass, yeas 0 nays 47

2/12/2015

Committee Referrals

Energy and Natural Resources1/26/2015

Full Bill Text

No bill text available