BISMARCK, N.D. (AP) The North Dakota House has endorsed a bill that will cut incentives to oil companies in exchange for a lower and permanent flat tax rate.
The House approved the measure 57-32 on Monday.
Oil companies could see a big tax cut if crude prices continue to slide. A state law forgives a 6.5 percent extraction tax if the five-month average price of oil slips below a ``trigger'' price. That trigger is expected to kick in June 1.
Republicans want to lower the extraction tax permanently to 4.5 percent if the trigger kicks in. State analysts estimate that will add $120 million in revenue over the next two years.
But some believe lowering the tax rate will cost the state billions of dollars in the long run.