Dakota Beacon

Over the last several weeks there has been a lot of noise coming out of Washington D.C. regarding the potential to jack up energy taxes, a move which would only further exacerbate the problem of high gas prices.

North Dakota's retiring Senator, Kent Conrad has tied himself into a few of these plans.

The first plan would eliminate "Section 199 Deductions" for the oil industry.  These deductions are a type of depreciation write-off that pretty much any business in the manufacturing industry takes advantage of one way or another.

NDTA has been following the Section 199 tax issue since last year.

The second plan, which the Minot Daily News correctly called "absurd," is a plan to tax vehicle mileage.

Senator Conrad, as Chairman of the Senate Budget Committee, requested that the Congressional Budget Office (CBO) put together a report on the viability of enacting a Vehicle Mileage Tax (VMT).

From The Hill:

March Congressional Budget Office report that supported the idea of taxing drivers based on miles driven.

Among other things, CBO suggested that a vehicle miles traveled (VMT) tax could be tracked by installing electronic equipment on each car to determine how many miles were driven; payment could take place electronically at filling stations.

The CBO report was requested by Senate Budget Committee Chairman Kent Conrad (D-N.D.), who has proposed taxing cars by the mile as a way to increase federal highway revenues.

The proposal seems to follow up on that idea in section 2218 of the draft bill. That section would create, within the Federal Highway Administration, a Surface Transportation Revenue Alternatives Office. It would be tasked with creating a "study framework that defines the functionality of a mileage-based user fee system and other systems."

These sorts of plans would be very destructive to North Dakota since we drive much more than the national average because everything is 100+ miles away!

What can you do about this?

Action Alert!

You can call Senator Conrad's office and tell him "NO" to new taxes on energy.

Senator Conrad's Office Number in Bismarck is 701.258.4648

If you get through, please reply to this email so we can track what they are telling people.

While Senator Conrad is retiring, and may not feel the need to be responsive to voters, it is important to let him know people are still watching.

- Dustin Gawrylow, Executive Director

North Dakota Taxpayers' Association

Office: (701) 751-2530