North Dakota adopts broader policy for oil tax investments
BISMARCK, N.D. (AP) — The Republican-led North Dakota Legislature approved bipartisan legislation Monday aimed at creating a broader investment policy for the state’s voter-approved oil tax savings account.
Senators voted 47-0 to approve the bill that would tap 20% of future oil tax collections coming into the Legacy Fund to help establish loans for expensive infrastructure projects and provide capital for in-state companies.
Representatives approved the measure 85-8 last month. It now goes to Gov. Doug Burgum for his signature.
Backers of the bill say only about 1% of the Legacy Fund’s principal is invested in North Dakota at present.
Voters in 2010 endorsed a constitutional amendment that requires setting aside 30% of state tax revenues on oil and natural gas production in the Legacy Fund, which is valued at about $8 billion. It’s expected to earn about $500 million over the next two-year budget cycle.
Under the proposed legislation, earnings from investments would be used to establish a revolving loan fund. Loans from the fund would have an interest rate of less than 2%. They would be administered by the state-owned Bank of North Dakota for projects such as flood protection and water systems. Cities, counties and other political subdivisions would be eligible for loans.