- Associated Press - Tuesday, February 17, 2015

BISMARCK, N.D. (AP) - North Dakota’s House has extended tax cut aimed at keeping companies drilling new oil wells when they might otherwise go idle.

One of the state’s two taxes on wells is a 6.5 percent extraction tax. A state law forgives that tax if the price of a barrel of oil slips below certain “trigger” prices.

One trigger price needs to average below $55 for a month. That tax cut went into effect this month due to slipping oil prices. The trigger was slated to expire this summer.

The House voted 79-14 Monday to extend that trigger for another two years.

The state Tax Department has estimated the cut would cost the state about $170,000 in lost revenue for each well drilled.



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