BISMARCK, N.D. (AP) - The North Dakota Legislature is looking at restructuring oil taxes as a hedge against falling crude prices.
Oil companies could see a big tax cut if crude prices continue to slide, and the state could lose billions of dollars. A state law forgives a 6.5 percent extraction tax if the five-month average price of a barrel of oil slips below a "trigger" price. That trigger is expected to kick in June 1.
Leaders from the Republican-led House and Senate are now considering lowering the extraction tax permanently from 6.5 percent to 4 percent if the trigger kicks in, instead of giving companies the tax break.
Senate Majority Leader Rich Wardner says it would give the state more "stability and predictability."