North Dakota Administrative Code Title 81 — Tax Commissioner
N.D. Admin. Code § 81-09-02-15
Exempt royalty interests
# 1.
A royalty interest in oil or gas is exempt from the gross production tax if the royalty interest is owned by any of the following entities and that entity's immunity from taxation has not been waived by the appropriate governmental authority: a. The federal government or an instrumentality of the federal government. b. The state of North Dakota or its political subdivisions. c. An organized Indian tribe, whose land cannot be alienated without consent of the federal government.
# 2.
A royalty interest in production which is owned by a private or charitable organization, whether profit or nonprofit, is not exempt from the gross production tax.
# 3.
For oil, the value of an exempt royalty interest is limited to the lesser of the following: a. The amount of any royalty payments made to the entities listed in subdivisions a, b, and c of subsection 1. b. The royalty percentage attributable to the entities listed in subdivisions a, b, and c of subsection 1 times the total amount reported as the gross value at the well.
# 4.
For gas, the volume of an exempt royalty interest is the royalty interest percentage attributable to the entities listed in subdivisions a, b, and c of subsection 1 times the taxable volume of gas.
Amendment history
History: Effective August 1, 1986; amended effective July 1, 1989; March 1, 1990; June 1, 1992. General Authority: NDCC 57-51-21; ND Con X, 5 Law Implemented: NDCC 57-51-02, 57-51-02.2
Source: view the official PDF
In this article (40 sections)
- 81-09-01-02 · Headnote, cross-reference, and source note not part of…
- 81-09-02-01 · Definitions
- 81-09-02-02 · Procedure for review of commissioner's determination of…
- 81-09-02-03 · Procedure for refund of overpayments, duplicate payments,…
- 81-09-02-03.1 · Interest on refunds
- 81-09-02-03.2 · Procedure for limited review of amended returns…
- 81-09-02-04 · Due dates for filing a return and paying tax
- 81-09-02-05 · Extension of due date for filing a return or paying tax
- 81-09-02-06 · Penalty for failure to file a return and procedure for…
- 81-09-02-06.1 · Penalty and interest on delinquent tax
- 81-09-02-07 · Injected oil
- 81-09-02-08 · Determination of gross value
- 81-09-02-09 · Definition of arm's length contract
- 81-09-02-09.1 · Reduction from gas volumes and reporting
- 81-09-02-10 · Condensate recovered from a gas stream
- 81-09-02-11 · Tax reimbursement
- 81-09-02-12 · Postproduction costs for periods prior to July 1, 1991
- 81-09-02-13 · Measurement or determination of oil or gas production
- 81-09-02-14 · Taxation of volume gains
- 81-09-02-14.1 · Taxation of oil pipeline volume gains
- 81-09-02-15 · Exempt royalty interests
- 81-09-02-16 · Exemption for lease use gas
- 81-09-02-17 · Definition of gas base rate adjustment and tax rate
- 81-09-02-18 · Method for calculating the tax rate on gas
- 81-09-02-19 · Reporting requirements for producers and purchasers
- 81-09-02-20 · Waiver of requirement to file producer's report
- 81-09-03-01 · Application of oil and gas gross production tax rules to…
- 81-09-03-02 · Definitions
- 81-09-03-03 · Determination of a property - Operator's election to…
- 81-09-03-04 · Designation of a property on an individual well basis -…
- 81-09-03-05 · Rate reduction for qualifying secondary and tertiary…
- 81-09-03-05.1 · Tax incentives for qualifying secondary recovery…
- 81-09-03-05.2 · Tax incentives for qualifying tertiary recovery projects
- 81-09-03-05.3 · Reporting requirements for secondary and tertiary…
- 81-09-03-06 · New well exemption for vertical and horizontal wells
- 81-09-03-07 · Stripper well exemption
- 81-09-03-08 · Work-over exemption
- 81-09-03-09 · Trigger provision applicable to oil extraction tax rate
- 81-09-03-10 · Horizontal reentry well exemption
- 81-09-03-11 · Two-year inactive well exemption