Coal Severance Tax (North Dakota)
Last modified on February 12, 2015.
|Applies to States or Provinces||North Dakota|
|Name||Coal Severance Tax (North Dakota)|
|Policy Category||Other Policy|
|Affected Technologies||Coal with CCS|
|Program Administrator||North Dakota Office of State Tax Commissioner|
The Coal Severance Tax is imposed on all coal severed for sale or industrial purposes, except coal used for heating buildings in the state, coal used by the state or any political subdivision of the state, and coal used in agricultural processing and sugar beet refining plants in the state or adjacent states.
The tax is in lieu of sales and use taxes on the coal and property tax on minerals in the earth. Coal is taxed at a flat rate of 37.5 cents per ton. An additional 2-cent per ton tax is levied for the Lignite Research Fund. A 50% reduction in the 37.5-cent tax is allowed for coal burned in a cogeneration facility designed to use renewable resources to generate 10% or more of its energy output. Counties may grant a partial or complete exemption from the counties’ 70% portion of the 37.5-cent tax for coal that is shipped out of state.
|Department||Office of State Tax Commissioner|
|Address||600 E Boulevard Ave., Dept 127|
|Place||Bismarck, North Dakota|
Authorities (Please contact the if there are any file problems.)
|Authority 1:||N.D.C.C. 57-61|