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Taxation of lignite mining in Montana and North Dakota

Technical Report ·
OSTI ID:6224048
This paper compares taxes on lignite mining in North Dakota and Montana, using the ENERGYTAX simulation model. While severance tax payments are similar - $0.88 per ton in North Dakota compared to $0.94 to $1.07 in Montana - the total tax bill is much less in North Dakota. A model 2 million ton lignite mine, producing fuel for a mine-mouth thermogenerator, would pay State and local taxes of $1.44 per ton in Montana, but only $0.96 in North Dakota. Much of the additional tax in Montana results from including gross proceeds of the mine in the local property tax base.
Research Organization:
Minnesota Univ., St. Paul (USA). Dept. of Agricultural and Applied Economics
OSTI ID:
6224048
Report Number(s):
NP-23703
Country of Publication:
United States
Language:
English