Section 57-51-02.2 - Gross production tax - GasA gross production tax is levied upon all gas produced within North Dakota except gas that is exempt from taxation. The tax levied must attach to the whole production, including the royalty interest. The tax on gas must be calculated by taking the taxable production in mcf times the gas tax rate.
1. The gas tax rate is four cents times the gas base rate adjustment for each fiscal year as calculated under subsection 2.2.a. The tax department shall annually determine the gas base rate adjustment and the resulting gas tax rate for each fiscal year beginning on July first.b. The gas base rate adjustment for the fiscal year is a fraction, the numerator of which is the annual average of the gas fuels producer price index, commodity code 05-3, as calculated and published by the United States department of labor, bureau of labor statistics, for the previous calendar year, and the denominator of which is seventy-five and seven-tenths.c. The tax department shall provide the gas base rate adjustment and the gas tax rate for the fiscal year, as determined under this subsection, to affected producers on or before June first by posting the notice on the tax department's website.d. If the index used to determine the gas base rate adjustment is substantially revised, or if the base year for the index is changed, the department by administrative rule shall make appropriate adjustment to the method used to determine the gas base rate adjustment to ensure a result which is reasonably consistent with the result which would have been obtained had the index not been revised or the base year changed.e. If the gas fuels producer price index is discontinued, a comparable index must be adopted by the department by an administrative rule.Amended by S.L. 2023 , ch. 530( HB 1057 ), § 5, eff. for notices issued beginning 7/1/2023.