ND HB1286

Amends North Dakota Century Code section 57-51.1-02 to establish a base oil extraction tax rate of 5 percent on the gross value of oil extracted at the well.

Limits the triggered increase to 6 percent tax rate (when crude oil exceeds $90 per barrel for three consecutive months) to wells located within reservation boundaries, on trust properties outside reservation boundaries, or straddle wells on reservation trust land.

Removes the triggered tax rate increase mechanism for wells located outside reservation exterior boundaries, keeping them permanently at the 5 percent base rate.

Allows tribes to make an irrevocable election to opt out of the increased 6 percent tax rate by providing written notice to the tax commissioner.

Effective for taxable events occurring after June 30, 2023.