North Dakota may lose $5.5 billion in revenue as oil plunges
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North Dakota lawmakers are now expecting billions less in tax revenue during the next two and a half years.
Blame falling oil prices.
A report from Legislative Council downgrading revenue projections by $5.5 billion points mostly to the impact of oil tax exemptions the Legislature previously failed to reform.
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During the 2013 legislative session multiple bills to eliminate the exemptions in exchange for lower top rates were rejected. Now plunging oil prices are expected to invoke those triggers causing a multi-billion swing in the state's expected revenues.
In early January, lawmakers began their 2015 session under what was described as a "black cloud" of oil price concerns. Now a projection released by lawmakers Thursday expects the state to lose $680 million in income and sales tax revenue between now and June 30, 2017.
North Dakota likely will lose another $4.8 billion in oil and gas tax revenue during that same period.
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The impact on the state's finances could be dramatic.