State taxes on North Dakotans' heating bills are being abolished over the next two years, although they will linger through part of the coming winter.
On Tuesday, the North Dakota Senate and House both unanimously endorsed legislation to repeal the home heating taxes by July 1, 2009.
North Dakota charges a 2 percent tax on natural gas, propane and heating oil and levies the state's 5 percent sales tax on coal used for home heating.
Rep. Al Carlson, R-Fargo, introduced legislation in January to repeal the heating fuels taxes, starting July 1. However, the estimated loss of almost $18 million in tax revenues over two years made legislators backtrack as a budget surplus of more than $500 million gradually disappeared under the weight of spending demands. The measure was reshaped into a proposal to eliminate the heating fuel taxes in two steps. The 2 percent tax on natural gas, propane and heating oil will decline to 1 percent on Jan. 1, and will disappear on July 1, 2009. The coal tax will be abolished all at once on July 1, 2009.
- Associated Press
Posted in State-and-regional on Tuesday, April 24, 2007 7:00 pm Updated: 3:46 pm.
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