N.D.C.C. § 57-61-01.3 — Severance tax reduction for coal mined for certain users

The rate of severance tax determined and imposed as provided in section 57-61-01 must be
reduced by fifty percent if the coal is to be burned in a cogeneration facility which is designed to
use renewable resources as fuel to generate ten percent or more of its energy output measured
in British thermal units. The coal mine owner or operator must certify, or require the person
purchasing the coal to certify, that the coal will be used in the manner required by this section to
qualify for the reduced tax rate.
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57-61-01.4. Severance and sales and use tax exemptions for coal used in certain
plants.
No state severance tax may be imposed on coal used in, or coal used to produce steam
that is used in, agricultural commodity processing facilities as defined in subsection 4 of section
57-39.2-04.4 located within North Dakota or adjacent states or any facility owned by the state or
a political subdivision of the state. No state severance tax may be imposed on coal purchased
for improvement through the process of coal beneficiation defined in section 57-60-01 which is
subsequently used in, or used to produce steam that is used in, agricultural commodity
processing facilities located within North Dakota or adjacent states or any facility owned by the
state or a political subdivision of the state. The coal mine owner or operator shall require the
person purchasing the coal to certify that amount of coal purchased for use in agricultural
commodity processing facilities or for beneficiation and subsequent use in agricultural
commodity processing facilities or any facility owned by the state or a political subdivision of the
state or to produce steam that is used in any of those facilities.
57-61-01.5. Separate and additional coal severance tax - Lignite research,
development, and marketing program - Continuing appropriation - Administration.
1. There is imposed upon all coal or commercial leonardite severed for sale or for
industrial purposes by coal or commercial leonardite mines within the state a tax,
separate from and additional to the tax imposed by section 57 -61-01, of two cents per
ton of two thousand pounds [907.18 kilograms]. All of the provisions of this chapter for
administration of the coal or commercial leonardite severance tax apply to the tax
imposed under this section. The state tax commissioner shall transfer revenue from
the tax imposed by this section to the state treasurer for deposit in a special fund in the
state treasury, known as the lignite research fund. Such moneys must be used for
contracts for land reclamation research projects and for research, development, and
marketing of lignite and products derived from lignite. The industrial commission shall
adopt rules for submission and consideration of research, development, and marketing
proposals and entering into contracts under the lignite research, development, and
marketing program.
2. The state treasurer shall deposit in the lignite research fund seventy percent of the
taxes collected and deposited subsequent to July 1, 1994, in the permanent trust fund
established by section 21 of article X of the Constitution of North Dakota and shall,
beginning in July 1991, no less than monthly, deposit in the lignite research fund
seventy percent of the taxes collected and deposited in the permanent trust fund. All
moneys in the lignite research fund as well as any moneys received from federal and
private sources for lignite research, development, and marketing, including interest on
all such moneys, are appropriated to the industrial commission, and may be spent only
within limits of legislative appropriations, for the administration, development, and
funding of the lignite research, development, and marketing program.