Coal Tax | North Dakota Office of State Tax Commissioner

Coal Tax | North Dakota Office of State Tax Commissioner Coal Tax There are two types of coal tax in North Dakota – coal conversion facilities privilege tax and coal severance tax. The coal conversion facilities privilege tax is imposed on electrical generating plants: with at least one generating unit with a capacity of 10,000 kilowatts or more, other coal conversion facilities that consume 500,000 tons or more of coal per year, and coal beneficiation plants. The coal conversion facilities privilege tax is in lieu of property taxes on the plant. The land on which the plant is located remains subject to property tax The coal severance tax is imposed on coal and commercial leonardite that is used for sale or industrial purposes. The coal severance tax is not imposed on: coal used for heating buildings in the state, coal used by the State or any political subdivision in North Dakota, and coal used in agricultural processing and sugar beet refining plants in North Dakota or adjacent states. The coal severance tax is in lieu of sales and use taxes on the coal and commercial leonardite and property tax on minerals in the earth. Coal and commercial leonardite are taxed at a flat rate of 37.5 cents per ton. An additional 2-cent per ton tax is levied for the Lignite Research Fund. A 50% reduction in the 37.5-cent tax is allowed for coal burned in a cogeneration facility designed to use renewable resources to generate 10% or more of its energy output. Counties may grant a partial or complete exemption from the counties’ 70% portion of the 37.5-cent tax for coal or commercial leonardite that is shipped out of North Dakota. Beginning July 1, 2023, coal severance tax may not be imposed on the first one million tons (907,184.74 metric tons) of coals per year used as a feedstock by a coal processing facility that utilizes coal as a feedstock in this state. Tax incentives may apply to coal mines and facilities for coal gasification byproducts, learn more at: Tax Exemptions | Credits The following forms are effective for production after June 30, 2021 through June 30, 2026 and are submitted monthly to the Office of State Tax Commissioner Coal Conversion Facility Privilege Tax New or Repowered Electrical Generating Plants - Fillable PDF Electrical Generating Plants Claiming CO2 Capture Credit - Fillable PDF Electronic Fund Transfer (EFT) and TXP Layout Information Coal Severance Tax Electronic Fund Transfer (EFT) and TXP Layout Information Archived Quarterly Reports for Tons of Taxable Coal Severed Forms Find Coal Tax Forms Tax Deadlines Find Important Dates