ADVANCING THE POSSIBILITIES
Oil and gas taxes are making big possibilities become reality.
As an economic powerhouse, the oil and gas industry contributes billions in state tax revenues, which allows state and local leaders to invest in our communities and advance possibilities across the state.
The oil and natural gas industry paid more than $3.8 billion paid in taxes—or 50 percent of all state tax revenues—collected by the state in 2020. In addition to oil and gas extraction taxes, the state also benefits from numerous other taxes, royalties and lease bonuses (see right).
A majority of these tax revenues are directed toward funds used to fund specific priorities including schools, roads and infrastructure, the North Dakota Legacy Fund, property tax relief, wildlife and natural resources, and more.
A portion of oil and gas taxes that aren’t designated into special funds such as those listed above go into the State’s General Fund, which is also used to fund roads, infrastructure, schools, law enforcement and other priorities.
For more information about the distribution of oil and gas taxes, visit the North Dakota State Treasurer’s Site.
state and local government revenues
from oil and gas
$82.19 million in sales taxes
$50.37 million in property taxes
$10.86 million in personal income taxes
$2.26 million in corporate income taxes
$4.82 million in fines, fees and permits
$5.02 million in motor vehicle taxes
$16.8 million in miscellaneous taxes
$15.28 million in social insurance taxes
Making possibilities reality in the Valley.
In Grand Forks, leaders are imagining big possibilities and seeing them become reality. The new water treatment plant, the UND School of Law, the UND School of Medicine & Health Sciences and the Harold Hamm School of Geology & Geological Engineering were all made possible by North Dakota’s oil and gas industry. It not only supports local businesses and good-paying jobs, it invests in our communities through billions in state taxes that fund projects and advance the possibilities across the state.
$132.85 million from oil and natural gas
Common School Trust Fund
The Common Schools Trust Fund is vital to schools across North Dakota, providing everything from teacher salaries and operating costs, to books, supplies and playground equipment.
Oil extraction tax revenues received by the Common School Trust Fund totaled $68,855,764 in fiscal year 2021. Another $64 million was appropriated to the Fund as a one-time payment.
The Best Resources
Economic growth from oil and gas activity has led to new high school facilities and other developments throughout the state. Watford City’s new high school and Rough Rider Center are just a few examples.
The three-story, 167,000 square-foot high school is the first new school built in Watford City since 1985. Capable of accommodating about 800 students, the school features high-tech classrooms with interactive television and internet connections, and areas for students to collaborate on projects.
Watford City received $4.4 million in Energy Impact Grants for land purchase, site prep, roadways and utilities for Watford City High School.