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North Dakota lawmakers fail to pass bill eliminating property tax exemption for carbon pipeline


A bill that would have required Summit Carbon Solutions to pay property taxes in the first 10 years of operation in North Dakota has failed in the state Senate. Sen. Jeff Magrum sponsored the bill, SB 2320, which aimed to remove a tax exemption for interstate carbon dioxide pipelines. The company is planning a 2,500-mile pipeline network, with 333 miles passing through North Dakota. Summit officials testified that a significant portion of the $9 billion project would be spent on the North Dakota portion.

However, Sen. Dale Patten argued that eliminating the exemption would be a “bait and switch tactic” at this stage. Magrum countered by stating that the company has already benefited from local research and other tax breaks. The bill is part of a series of measures related to carbon dioxide pipelines in the 2025 legislative session. This decision has sparked a debate between landowners and the energy industry in North Dakota.

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