# Title 57 — Taxation

## Chapter 57-60 — Coal Conversion Facilities Privilege Tax

### § 57-60-01. Definitions.

As used in this chapter:
1. "Byproducts" means commercially usable products produced during the coal
gasification or coal beneficiation process other than the principal product of a coal
gasification plant or of a coal beneficiation plant.
2. "Carbon dioxide capture" means removal of carbon dioxide emissions from a coal
conversion facility.
a. For electrical generating plants, carbon dioxide captured is measured using the
stack emissions of carbon dioxide from the facility as reported by the continuous
emission monitoring system, in compliance with environmental protection agency
rules in 40 CFR 75. The percentage reduction is determined by:
(1) Determining the total carbon dioxide produced from the facility before the
capture of carbon dioxide;
(2) Subtracting the stack emissions of carbon dioxide from the facility; and
(3) Dividing the result of paragraph 2 by the result of paragraph 1 and
multiplying by one hundred, which results in the percentage of carbon
dioxide captured.
b. For coal gasification facilities, the carbon dioxide captured is determined by:
(1) Determining the total carbon input to the facility by multiplying the
percentage of carbon content in the coal fed to the facility, determined from
the average of coal analysis for the taxing period, times the total tons of coal
fed to the facility for the taxing period.
(2) Determining the amount of nonemissions carbon by multiplying the
percentage of carbon content in all hydrocarbon products, except carbon
dioxide, leaving the facility times the tons of hydrocarbon products leaving
the facility for the taxing period.
(3) Subtracting the result under paragraph 2 from the result under paragraph 1
and multiplying the result times 3.667 to convert the amount of tons of
carbon to tons of carbon dioxide, which results in the total tons of carbon
dioxide emissions without capture.
(4) The amount of carbon dioxide captured for the taxing period measured by a
flow meter and converted to tons.
(5) Dividing the result of paragraph 4 by the result from paragraph 3 and
multiplying by one hundred, which results in the percentage of carbon
dioxide captured.
3. "Coal beneficiation" means improving the physical, environmental, or combustion
qualities of coal but does not include crushing or treatment with dust suppressants or
freeze-proofing agents.
4. "Coal conversion facility" means any of the following:
a. A plant, other than an electrical generating plant or a coal beneficiation plant, with
all additions thereto, which processes or converts coal from its natural or
beneficiated form into a form substantially different in chemical or physical
properties, including coal gasification, coal liquefaction, and the manufacture of
fertilizer and other products, and which uses or is designed to use over five
hundred thousand tons [453592.37 metric tons] of coal per year;
b. An electrical generating plant, with all additions thereto, which processes or
converts coal from its natural or beneficiated form into electrical power and which
has at least one single electrical energy generation unit with a capacity of ten
thousand kilowatts or more;
c. A plant, with all additions thereto, which is designed for coal beneficiation; or
d. A gas-fired electrical generating facility, and all additions to the facility, which
generates electrical power through the consumption of gas produced by the
conversion of coal from its natural or beneficiated form into gas and has a
capacity of ten thousand kilowatts or more.

5. "Coal gasification" means the production of synthetic natural gas, methanol, or other
principal commercial gaseous or liquid product from coal.
6. "Commissioner" means the state tax commissioner.
7. "Design capacity of a coal beneficiation plant" means the number of tons a coal
beneficiation plant is designed to produce as certified by a registered professional
engineer.
8. "Gross receipts" means all revenue valued in money, whether received in money or
otherwise, derived by a coal conversion facility subject to the provisions of this chapter
from the production of products of a coal conversion facility. For the purpose of
computing the tax imposed by this chapter, "gross receipts" does not include any
financial assistance, whether in the form of price guarantee payments or otherwise,
provided by the federal government or any agency of the federal government.
9. "Installed capacity" means the number of kilowatts a power unit can produce according
to the nameplate assigned to the power unit generator by the manufacturer.
10. "Operator" means any person owning, holding, or leasing a coal conversion facility and
conducting the conversion of coal into the products of the facility.
11. "Person" means any individual, estate, trust, corporation, cooperative corporation,
limited liability company, or association.
12. "Repowering" means an investment of more than two hundred million dollars or one
million dollars per megawatt of installed nameplate capacity, whichever is less, in an
existing power plant that modifies or replaces the process used for converting coal in
its natural form or beneficiated coal into electric power.
13. "Synthetic natural gas" means methane and any admixed gaseous products produced
by coal gasification.
### § 57-60-02. Imposition of taxes.

(Effective through June 30, 2026)
There is hereby imposed upon the operator of each coal conversion facility a tax paid
monthly for the privilege of producing products of such coal conversion facility. The rate of the
tax must be computed as follows:
1. For all coal conversion facilities, except as otherwise provided in this section, the tax is
measured by the gross receipts derived from the facility for the preceding month and is
in the amount of two percent of its gross receipts. Gross receipts derived from the sale
of a capital asset are not subject to the tax imposed by this subsection.
2. For electrical generating plants, the tax is at a rate of sixty-five one-hundredths of
one mill times sixty percent of the installed capacity of each unit times the number of
hours in the taxable period. All electrical energy generating units that begin
construction or complete repowering are exempt from eighty-five percent of the tax
imposed by this subsection for five years from the date of the first taxable production
or from the date of the first taxable production after repowering from the unit. If a unit is
incapable of generating electricity for eighteen consecutive months, the tax on that unit
for taxable periods beginning after the eighteenth month must be reduced by the ratio
that the cost of repair of the unit bears to the original cost of the unit. This reduced rate
remains in effect until the unit is capable of generating electricity.
3. For electrical generating plants, in addition to the tax imposed by subsection 2, there is
a tax at the rate of twenty-five one-hundredths of one mill on each kilowatt hour of
electricity produced for the purpose of sale. For all electrical generating plants that
begin construction or complete repowering, the production from the plants is exempt
from the tax imposed by this subsection for five years from the date of the first taxable
production or from the date of the first taxable production after repowering from the
plant.
4. For coal gasification plants, the tax is the greater of either the amount provided in
subsection 1 or thirteen and one-half cents on each one thousand cubic feet [28316.85
liters] of synthetic natural gas produced for the purpose of sale but not including any
amount of synthetic natural gas in excess of one hundred ten million cubic feet per
day.

5. For all coal conversion facilities, other than electrical generating plants, the production
from the facilities is exempt from eighty-five percent of the tax imposed by this section
for a period of five years from the date of first taxable production from the facility. The
operator of each facility applying for exemption under this subsection shall certify to
the tax commissioner the date of first taxable production of the facility.
6. For coal beneficiation plants, the tax is twenty cents on each ton of two thousand
pounds [907.18 kilograms] of beneficiated coal produced for the purpose of sale, or
one and one-quarter percent of the gross receipts derived from such facility for the
preceding month, whichever amount is greater. Any amount of beneficiated coal
produced in excess of eighty percent of the design capacity of the coal beneficiation
plant or produced for use within a coal conversion facility is exempt from such tax.
7. With the exception of the tax imposed under subsection 3, the board of county
commissioners, by resolution, may grant the operator of a plant or facility located
within the county a partial or complete exemption from up to fifteen percent of the tax
imposed under this section for a period not to extend past June 30, 2026. If a board of
county commissioners grants a partial or complete exemption for a specific plant or
facility under this subsection, subsection 2 of section 57-60-14 does not apply.
Notwithstanding section 57-60-14, any tax collected from a plant or facility subject to
the exemption provided by this subsection must be allocated entirely to the county for
allocation as provided in section 57-60-15.
Imposition of taxes. (Effective after June 30, 2026, and through June 30, 2031) There
is hereby imposed upon the operator of each coal conversion facility a tax paid monthly for the
privilege of producing products of such coal conversion facility. The rate of the tax must be
computed as follows:
1. For all coal conversion facilities, except as otherwise provided in this section, the tax is
measured by the gross receipts derived from the facility for the preceding month and is
in the amount of two percent of its gross receipts. Gross receipts derived from the sale
of a capital asset are not subject to the tax imposed by this subsection.
2. For electrical generating plants, the tax is at a rate of sixty-five one-hundredths of
one mill times sixty percent of the installed capacity of each unit times the number of
hours in the taxable period. All electrical energy generating units that begin
construction or complete repowering are exempt from eighty-five percent of the tax
imposed by this subsection for five years from the date of the first taxable production
or from the date of the first taxable production after repowering from the unit. If a unit is
incapable of generating electricity for eighteen consecutive months, the tax on that unit
for taxable periods beginning after the eighteenth month must be reduced by the ratio
that the cost of repair of the unit bears to the original cost of the unit. This reduced rate
remains in effect until the unit is capable of generating electricity.
3. For electrical generating plants, in addition to the tax imposed by subsection 2, there is
a tax at the rate of twenty-five one-hundredths of one mill on each kilowatt hour of
electricity produced for the purpose of sale. For all electrical generating plants that
begin construction or complete repowering, the production from the plants is exempt
from the tax imposed by this subsection for five years from the date of the first taxable
production or from the date of the first taxable production after repowering from the
plant.
4. For coal gasification plants, the tax is the greater of either the amount provided in
subsection 1 or thirteen and one-half cents on each one thousand cubic feet [28316.85
liters] of synthetic natural gas produced for the purpose of sale but not including any
amount of synthetic natural gas in excess of one hundred ten million cubic feet per
day.
5. For all coal conversion facilities, other than electrical generating plants, the production
from the facilities is exempt from eighty-five percent of the tax imposed by this section
for a period of five years from the date of first taxable production from the facility. The
operator of each facility applying for exemption under this subsection shall certify to
the tax commissioner the date of first taxable production of the facility.

6. For coal beneficiation plants, the tax is twenty cents on each ton of two thousand
pounds [907.18 kilograms] of beneficiated coal produced for the purpose of sale, or
one and one-quarter percent of the gross receipts derived from such facility for the
preceding month, whichever amount is greater. Any amount of beneficiated coal
produced in excess of eighty percent of the design capacity of the coal beneficiation
plant or produced for use within a coal conversion facility is exempt from such tax.
7. With the exception of the tax imposed under subsection 3, the board of county
commissioners, by resolution, may grant the operator of a plant or facility located
within the county a partial or complete exemption from up to fifteen percent of the tax
imposed under this section for a period not to extend past June 30, 2031. If a board of
county commissioners grants a partial or complete exemption for a specific plant or
facility under this subsection, subsection 2 of section 57-60-14 does not apply.
Notwithstanding section 57-60-14, any tax collected from a plant or facility subject to
the exemption provided by this subsection must be allocated entirely to the county for
allocation as provided in section 57-60-15.
Imposition of taxes. (Effective after June 30, 2031) (Contingent effective date - See
note) There is hereby imposed upon the operator of each coal conversion facility a tax paid
monthly for the privilege of producing products of such coal conversion facility. The rate of the
tax must be computed as follows:
1. For all coal conversion facilities, except as otherwise provided in this section, the tax is
measured by the gross receipts derived from the facility for the preceding month and is
in the amount of two percent of its gross receipts. Gross receipts derived from the sale
of a capital asset are not subject to the tax imposed by this subsection.
2. For electrical generating plants, the tax is at a rate of sixty-five one-hundredths of one
mill times sixty percent of the installed capacity of each unit times the number of hours
in the taxable period. All electrical energy generating units that begin construction or
complete repowering are exempt from eighty-five percent of the tax imposed by this
subsection for five years from the date of the first taxable production or from the date
of the first taxable production after repowering from the unit. The board of county
commissioners may, by resolution, grant to the operator of an electrical generating
plant located within the county partial or complete exemption from the remaining
fifteen percent of the tax imposed by this subsection for a period not exceeding five
years from the date of the first taxable production or from the date of the first taxable
production after repowering from the unit. If a board of county commissioners grants a
partial or complete exemption for a specific coal conversion facility under this
subsection, the provisions of subsection 2 of section 57-60-14 do not apply as that
subsection relates to revenue from the specific unit of the coal conversion facility for
which the partial or complete exemption has been granted. Notwithstanding section
57-60-14, any tax collected from a unit subject to the exemption provided by this
subsection must be allocated entirely to the county for allocation as provided in section
### § 57-60-15. If a unit is incapable of generating electricity for eighteen consecutive

months, the tax on that unit for taxable periods beginning after the eighteenth month
must be reduced by the ratio that the cost of repair of the unit bears to the original cost
of the unit. This reduced rate remains in effect until the unit is capable of generating
electricity.
3. For electrical generating plants, in addition to the tax imposed by subsection 2, there is
a tax at the rate of twenty-five one-hundredths of one mill on each kilowatt hour of
electricity produced for the purpose of sale. For all electrical generating plants that
begin construction or complete repowering, the production from the plants is exempt
from the tax imposed by this subsection for five years from the date of the first taxable
production or from the date of the first taxable production after repowering from the
plant.
4. For coal gasification plants, the tax is the greater of either the amount provided in
subsection 1 or thirteen and one-half cents on each one thousand cubic feet [28316.85
liters] of synthetic natural gas produced for the purpose of sale but not including any

amount of synthetic natural gas in excess of one hundred ten million cubic feet per
day.
5. a. For all coal conversion facilities, other than electrical generating plants, the
production from the facilities is exempt from eighty-five percent of the tax
imposed by this section for a period of five years from the date of first taxable
production from the facility. The operator of each facility applying for exemption
under this subsection shall certify to the tax commissioner the date of first taxable
production of the facility.
b. The board of county commissioners may, by resolution, grant to the operator of a
coal conversion facility, other than an electrical generating plant, located within
the county a partial or complete exemption from the remaining fifteen percent of
tax imposed by this section for a period not exceeding five years from the date of
the first taxable production from the facility. Notwithstanding the provisions of
section 57-60-14, any tax collected which is based upon the production of a
facility subject to the exemption provided by this subsection must be allocated
entirely to the county for allocation as provided in section 57-60-15.
6. For coal beneficiation plants, the tax is twenty cents on each ton of two thousand
pounds [907.18 kilograms] of beneficiated coal produced for the purpose of sale, or
one and one-quarter percent of the gross receipts derived from such facility for the
preceding month, whichever amount is greater. Any amount of beneficiated coal
produced in excess of eighty percent of the design capacity of the coal beneficiation
plant or produced for use within a coal conversion facility is exempt from such tax.
### § 57-60-02.1. Carbon dioxide capture credit - Reporting requirement.

(Effective through
June 30, 2026)
A coal conversion facility that achieves a twenty percent capture of carbon dioxide
emissions during a taxable period is entitled to a twenty percent reduction in the state general
fund share of the tax imposed under section 57-60-02 during that taxable period. The facility is
entitled to an additional reduction of one percent of the state general fund share of the tax
imposed under section 57-60-02 for every additional two percentage points of its capture of
carbon dioxide emissions. A maximum fifty percent reduction of the state general fund share of
the tax imposed under section 57-60-02 is allowed for eighty percent or more capture of carbon
dioxide emissions. A coal conversion facility may receive the reduction in coal conversion tax
under this section for ten years from the date of first capture of carbon dioxide emission or for
ten years from the date the coal conversion facility is eligible to receive the credit. A coal
conversion facility that met the carbon dioxide capture requirements before January 1, 2017,
may not claim the reduction under this section.
The operator of a coal conversion facility that receives a credit under this section shall
report annually to the legislative council. The report must include:
1. An overview of the carbon dioxide capture project.
2. A status report on the current state of the carbon dioxide capture project, including
data on the amount of carbon dioxide produced from the facility before the carbon
dioxide capture project and the current carbon dioxide produced and captured from the
facility.
3. Any recent changes to enhance the carbon dioxide capture system.
4. Information on the status of federal law and regulations related to the carbon dioxide
capture project, including any benefits from the project realized by the operator under
federal law and regulations.
Carbon dioxide capture credit - Reporting requirement. (Effective after June 30, 2026)
A coal conversion facility that achieves a twenty percent capture of carbon dioxide emissions
during a taxable period is entitled to a twenty percent reduction in the state legacy fund share of
the tax imposed under section 57-60-02 during that taxable period. The facility is entitled to an
additional reduction of one percent of the state legacy fund share of the tax imposed under
section 57-60-02 for every additional two percentage points of its capture of carbon dioxide
emissions. A maximum fifty percent reduction of the state legacy fund share of the tax imposed
under section 57-60-02 is allowed for eighty percent or more capture of carbon dioxide

emissions. A coal conversion facility may receive the reduction in coal conversion tax under this
section for ten years from the date of first capture of carbon dioxide emission or for ten years
from the date the coal conversion facility is eligible to receive the credit. A coal conversion
facility that met the carbon dioxide capture requirements before January 1, 2017, may not claim
the reduction under this section.
The operator of a coal conversion facility that receives a credit under this section shall
report annually to the legislative council. The report must include:
1. An overview of the carbon dioxide capture project.
2. A status report on the current state of the carbon dioxide capture project, including
data on the amount of carbon dioxide produced from the facility before the carbon
dioxide capture project and the current carbon dioxide produced and captured from the
facility.
3. Any recent changes to enhance the carbon dioxide capture system.
4. Information on the status of federal law and regulations related to the carbon dioxide
capture project, including any benefits from the project realized by the operator under
federal law and regulations.
### § 57-60-02.2. Coal conversion facility tax - Exemption - Lignite research tax -

Imposition. (Effective through June 30, 2026)
1. Excluding the generation tax imposed under subsection 3 of section 57-60-02, a coal
conversion facility is exempt from eighty-five percent of the tax imposed under section
tax imposed under section 57-60-02 multiplied by five percent.
2. An electrical generating plant is exempt from the generation tax imposed under
subsection 3 of section 57-60-02 and instead shall pay a lignite research tax equal to
the tax imposed under subsection 3 of section 57-60-02 multiplied by five percent.
Coal conversion facility tax - Exemption - Lignite research tax - Imposition. (Effective
after June 30, 2026, and through June 30, 2031) (Contingent repeal - See note)
1. a. Excluding the generation tax imposed under subsection 3 of section 57-60-02, a
coal conversion facility is entitled to a partial exemption from the coal conversion
state share of the tax imposed under section 57-60-02 equal to:
(1) Ninety percent of the coal conversion state share for taxable production
after June 30, 2026, and through June 30, 2027.
(2) Eighty percent of the coal conversion state share for taxable production after
June 30, 2027, and through June 30, 2028.
(3) Seventy percent of the coal conversion state share for taxable production
after June 30, 2028, and through June 30, 2029.
(4) Sixty percent of the coal conversion state share for taxable production after
June 30, 2029, and through June 30, 2030.
(5) Thirty-five percent of the coal conversion state share for taxable production
after June 30, 2030, and through June 30, 2031.
b. The coal conversion facility shall pay a lignite research tax equal to eighty-five
percent of the tax imposed under section 57-60-02 before the application of the
exemption under subdivision a, multiplied by five percent.
c. For purposes of this subsection, "coal conversion state share" means eighty-five
percent of the tax imposed under section 57-60-02, excluding the generation tax
imposed under subsection 3 of section 57-60-02.
2. a. An electrical generating plant is entitled to a partial exemption from the
generation tax imposed under subsection 3 of section 57-60-02 equal to:
(1) Ninety percent of the generating plant state share for taxable production
after June 30, 2026, and through June 30, 2027.
(2) Eighty percent of the generating plant state share for taxable production
after June 30, 2027, and through June 30, 2028.
(3) Seventy percent of the generating plant state share for taxable production
after June 30, 2028, and through June 30, 2029.

(4) Sixty percent of the generating plant state share for taxable production after
June 30, 2029, and through June 30, 2030.
(5) Thirty-five percent of the generating plant state share for taxable production
after June 30, 2030, and through June 30, 2031.
b. The electrical generating plant shall pay a lignite research tax equal to the tax
imposed under subsection 3 of section 57-60-02 before the application of the
exemption under subdivision a, multiplied by five percent.
c. For purposes of this subsection, the "generating plant state share" means one
hundred percent of the generation tax imposed under subsection 3 of section
57-60-02.
### § 57-60-03. Measurement and recording of synthetic natural gas, byproducts,

beneficiated coal, or electricity produced and carbon dioxide capture.
The production of synthetic natural gas, byproducts, beneficiated coal, or electrical power
and data necessary to determine the amount of carbon dioxide captured must be measured at
the place of production or generation, and any person subject to the imposition of the taxes
provided by this chapter shall maintain devices to measure and record the cumulative periodic
totals of synthetic natural gas, byproducts, beneficiated coal, and electrical power generated
and data necessary to determine the amount of carbon dioxide captured. Any person subject to
the taxes imposed by this chapter shall maintain accurate records of the daily and monthly totals
of synthetic natural gas, beneficiated coal, and electrical power generated and subject to such
taxes and data necessary to determine the amount of carbon dioxide captured. On or before
October first of each year, the operator of any coal gasification plant shall file a report with the
department of environmental quality listing the quantity of byproducts produced during the year
ending June thirtieth of that year. The commissioner shall have access to such records at
reasonable times and places.
### § 57-60-04. Payment of taxes for plants other than electrical generating plants - When

taxes due - When delinquent.
Repealed by S.L. 1983, ch. 648, § 14.
### § 57-60-05. Payment of taxes - When taxes due - When delinquent.

The taxes imposed by this chapter are due within twenty-five days after the end of each
month, and, if not received by the twenty-fifth day, become delinquent and must be collected as
herein provided. The commissioner, upon request and a proper showing of the necessity
therefor, may grant an extension of time, not to exceed fifteen days, for paying the tax, and
when such a request is granted, the tax is not delinquent until the extended period has expired.
The commissioner shall require a report to be filed monthly by each person subject to the taxes
imposed by section 57-60-02, in such form as the commissioner shall prescribe, to provide such
information as the commissioner deems necessary for the proper administration of this chapter.
### § 57-60-06. Property classified and exempted from ad valorem taxes - In lieu of certain

other taxes - Credit for certain other taxes.
Each coal conversion facility and any carbon dioxide capture system located at the coal
conversion facility, and any equipment directly used for secure geologic storage of carbon
dioxide or enhanced recovery of oil or natural gas must be classified as personal property and is
exempt from all ad valorem taxes except for taxes on the land on which the facility, capture
system, or equipment is located. The exemption provided by this section may not be interpreted
to apply to tangible personal property incorporated as a component part of a carbon dioxide
pipeline but this restriction does not affect eligibility of such a pipeline for the exemption under
section 57-06-17.1. The taxes imposed by this chapter are in lieu of ad valorem taxes on the
property so classified as personal property.

### § 57-60-07. Powers of commissioner.

The commissioner has power to require any person subject to the taxes imposed by this
chapter to furnish any additional information deemed by the commissioner to be necessary for
the purpose of correctly computing the amount of the tax, and to examine the books, records,
and files of such person, and has power to conduct hearings and compel the attendance of
witnesses, the production of books, records, and papers of any person, and full authority to
make any investigation or hold any inquest deemed necessary to a full and complete disclosure
of the true facts as to the amount of production or generation from any coal conversion plant,
and as to the rendition thereof for taxing purposes.
### § 57-60-08. Commissioner to compute tax on incorrect or omitted reports.

1. The commissioner has the power and authority to ascertain and determine whether or
not any report or remittances filed with the commissioner are correct, and if the person
filing such report has made an untrue or incorrect report or remittance or has failed to
make the required report, the commissioner shall ascertain the correct amount of
taxes due and give immediate written notice to the person filing the incorrect report or
remittance or who failed to file the required report. Any person receiving notice from
the commissioner that the person has filed an incorrect report or remittance or failed to
file the required report shall remit the tax assessed by the commissioner within fifteen
days of such notice unless within fifteen days of the notice such person makes
application in writing to the commissioner for a hearing under chapter 28-32 before the
commissioner. The tax becomes delinquent if within fifteen days of the notice it is not
paid or an application for a hearing is not made. Taxes assessed by decision of the
commissioner pursuant to chapter 28-32, if not paid, become delinquent five days after
the time for appeal from the commissioner's decision has expired, except that if an
appeal from the commissioner's decision is taken to the district court of Burleigh
County, such taxes, if not paid, become delinquent five days following final judicial
determination.
2. If a person has filed an incorrect report or has failed to file a report as required by this
chapter, the commissioner shall have six years from the date that the report was first
due within which to give the notice provided in subsection 1 of taxes due, except that if
false or fraudulent information is given in a report or if the failure to file a report is due
to the fraudulent intent or the willful attempt of the taxpayer in any manner to evade
the tax, no time limitation for giving the notice of taxes due applies.
### § 57-60-09. Proceedings and penalty on delinquency.

If the tax provided for in this chapter becomes delinquent, there is hereby imposed a penalty
of five dollars or a sum equal to five percent of the tax due, whichever is greater, with interest at
the rate of one percent per month on the tax due, for each calendar month or fraction thereof
during which such delinquency continues, excepting the month within which such tax became
due, which must be collected in the manner hereinafter provided. If any person fails to make any
report herein required, within the time prescribed by law for such report, it is the duty of the
commissioner to examine the books, records, and files of such person to ascertain the amount
and value of such production to compute the tax thereon as provided herein, and the
commissioner shall add thereto the amount of any penalties accrued thereon. The
commissioner, for good cause shown, may waive the penalty or the interest provided by this
section.
### § 57-60-10. Lien for tax.

The tax herein provided for must, at all times, be and constitutes a first and paramount lien
in favor of the state of North Dakota upon all property and rights to property, whether real or
personal, belonging to the taxpayer, and such lien may be foreclosed in the manner provided in
chapter 32-20.

### § 57-60-10.1. Refund of overpayments.

If it appears that as a result of a mistake an overpayment of a tax, penalty, or interest was
made which was not due under the provisions of this chapter, then such amount must be
credited against any amount due under this chapter from the person who made the erroneous
payment or must be refunded to such person; provided, that the person entitled to the
overpayment makes a written claim for it to the commissioner within six years after the date the
overpayment was received by the commissioner. If a refund is authorized by the commissioner,
the commissioner shall certify the amount of the refund, the reason for it, and the name of the
person entitled to it to the office of management and budget which shall thereupon draw a
warrant for such amount on the funds to which the overpayment was credited.
### § 57-60-11. Appeal from decision of commissioner.

Any person aggrieved because of any action or decision of the commissioner under the
provisions of this chapter may within fifteen days of written notification thereof from the
commissioner make application in writing to the commissioner for a hearing to be governed by
the provisions of chapter 28-32 and may appeal the commissioner's decision following such
hearing to the district court of Burleigh County as provided in chapter 28-32.
### § 57-60-12. Rules and regulations - Bond.

The commissioner is hereby authorized and empowered to prescribe all necessary rules for
the purpose of making and filing of all reports required hereunder and otherwise necessary to
the enforcement of this chapter, and may require a sufficient bond from any person charged with
the making and filing of reports and the payment of the taxes herein imposed, and said bond
must run to the state of North Dakota and must be conditioned upon the making and filing of
reports as required by law or regulation, and for the prompt payment, by the principal therein, of
all taxes justly due the state by virtue of the provisions of this chapter.
### § 57-60-13. Moneys to be deposited with state treasurer.

It is the duty of the commissioner to immediately deposit with the state treasurer all moneys
collected by the commissioner under this chapter and to accompany each remittance with the
necessary information to allow the state treasurer to allocate the moneys received as provided
by this chapter.
### § 57-60-14. Allocation of revenue - Continuing appropriation.

(Effective through
June 30, 2026)
1. At least quarterly, the state treasurer shall allocate:
a. The lignite research tax collections under section 57-60-02.2 to the lignite
research fund for the purposes under section 57-61-01.5.
b. The remaining coal conversion tax collections under section 57-60-02 to the
county.
2. Notwithstanding any other provision of law, the allocation under this section to each
county may not be less in each calendar year than the amount certified to the state
treasurer for each county under this section in the immediately preceding calendar
year. For a county that has received less in a calendar year than the amount certified
to the state treasurer for that county in the immediately preceding calendar year, not
later than January tenth of the following year, the county auditor shall calculate the
amount that is due under this subsection and submit a statement of the amount to the
state treasurer. The state treasurer shall verify the stated amount and make the
required payment under this subsection to the county, from collections received under
section 57-60-02, not later than March first of the following year. The funds needed to
make the distribution to counties under this subsection are appropriated on a
continuing basis for making these payments. Money received by a county under this
subsection must be distributed pursuant to section 57-60-15.
3. Notwithstanding any other provision of law, for a county in which is located a coal
conversion facility that was not a coal conversion facility under this chapter before

January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
county under this section, except that for a county described in this subsection,
amounts received for any calendar year must be allocated by the county in the same
manner property taxes for the facility were allocated for taxable year 2001.
Allocation of revenue - Continuing appropriation. (Effective after June 30, 2026, and
through June 30, 2031)
1. At least quarterly, the state treasurer shall allocate:
a. The lignite research tax collections under section 57-60-02.2 to the lignite
research fund for the purposes under section 57-61-01.5.
b. The remaining portion of the coal conversion state share after the exemption
under section 57-60-02.2 to the legacy fund to become part of the principal of the
legacy fund. For purposes of this subdivision, "coal conversion state share" has
the same meaning as subsection 1 of section 57-60-02.2.
c. The remaining portion of the generating plant state share after the exemption
under section 57-60-02.2 to the legacy fund to become part of the principal of the
legacy fund. For purposes of this subdivision, "generating plant state share" has
the same meaning as subsection 2 of section 57-60-02.2.
d. The remaining coal conversion tax collections under section 57-60-02 to the
county.
2. Notwithstanding any other provision of law, the allocation under this section to each
county may not be less in each calendar year than the amount certified to the state
treasurer for each county under this section in the immediately preceding calendar
year. For a county that has received less in a calendar year than the amount certified
to the state treasurer for that county in the immediately preceding calendar year, not
later than January tenth of the following year, the county auditor shall calculate the
amount that is due under this subsection and submit a statement of the amount to the
state treasurer. The state treasurer shall verify the stated amount and make the
required payment under this subsection to the county, from collections received under
section 57-60-02, not later than March first of the following year. The funds needed to
make the distribution to counties under this subsection are appropriated on a
continuing basis for making these payments. Money received by a county under this
subsection must be distributed pursuant to section 57-60-15.
3. Notwithstanding any other provision of law, for a county in which is located a coal
conversion facility that was not a coal conversion facility under this chapter before
January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
county under this section, except that for a county described in this subsection,
amounts received for any calendar year must be allocated by the county in the same
manner property taxes for the facility were allocated for taxable year 2001.
Allocation of revenue - Continuing appropriation. (Effective after June 30, 2031)
(Contingent effective date - See note)
1. The state treasurer shall no less than quarterly allocate all moneys received from all
coal conversion facilities in each county pursuant to the provisions of this chapter,
fifteen percent to the county and eighty-five percent to the state, except moneys
received from the tax imposed by subsection 3 of section 57-60-02, which must be
allocated to the state. From the amount allocated to the state under this subsection:
a. Five percent must be allocated to the lignite research fund, for the purposes
defined in section 57-61-01.5; and
b. The remaining amount must be deposited in the legacy fund to become part of
the principal of the legacy fund.
2. Notwithstanding any other provision of law, the allocation under this section to each
county may not be less in each calendar year than the amount certified to the state
treasurer for each county under this section in the immediately preceding calendar
year. For a county that has received less in a calendar year than the amount certified
to the state treasurer for that county in the immediately preceding calendar year, not
later than January tenth of the following year, the county auditor shall calculate the
amount that is due under this subsection and submit a statement of the amount to the

state treasurer. The state treasurer shall verify the stated amount and make the
required payment under this subsection to the county, from collections received under
section 57-60-02, not later than March first of the following year. The funds needed to
make the distribution to counties under this subsection are appropriated on a
continuing basis for making these payments. Money received by a county under this
subsection must be distributed pursuant to section 57-60-15.
3. Notwithstanding any other provision of law, for a county in which is located a coal
conversion facility that was not a coal conversion facility under this chapter before
January 1, 2002, for years after 2002, subsection 2 applies to allocations to that
county under this section, except that for a county described in this subsection,
amounts received for any calendar year must be allocated by the county in the same
manner property taxes for the facility were allocated for taxable year 2001.
### § 57-60-15. Duty of state treasurer - Allocation to political subdivisions.

Moneys allocated to counties under the provisions of section 57-60-14 must be apportioned
as follows:
1. Thirty percent of all revenues allocated to any county must be paid by the state
treasurer to the incorporated cities of the county based upon the population of each
incorporated city according to the last official regular or special federal census or the
census taken in accordance with the provisions of chapter 40-02 in case of a city
incorporated subsequent to such census.
2. Forty percent of the revenues allocated to any county must be paid to the county
treasurer who shall deposit it in the county general fund to be used for general
governmental purposes.
3. Thirty percent of all revenues allocated to any county must be apportioned by the state
treasurer to school districts within the county on the average daily membership basis,
as certified to the state treasurer by the county superintendent of schools.
### § 57-60-16. Penalty.

Any person intentionally violating any of the provisions of this chapter is guilty of a class A
misdemeanor.
