In a recent Senate session in North Dakota, a bill proposed by Sen. Jeff Magrum, R-Hazelton, that would have required carbon dioxide pipeline developer Summit Carbon Solutions to pay property taxes in the first 10 years of operation in the state failed to pass. The bill aimed to remove a tax exemption for interstate carbon dioxide pipelines, such as the Summit project, as North Dakota law mandates the state to reimburse counties for the property tax revenue they would have collected during the initial years of pipeline operation.
Summit Carbon Solutions is working on constructing a 2,500-mile pipeline network across five states, with a portion of 333 miles passing through North Dakota. The pipeline is designed to gather carbon emissions from ethanol plants for permanent underground storage, with an estimated $800 million allocated for the North Dakota segment of the project.
Despite arguments from Sen. Dale Patten, R-Watford City, who claimed removing the tax exemption would be a “bait and switch tactic,” Sen. Magrum emphasized the need to ensure fair taxation for out-of-state companies benefiting from state resources and research. The bill is part of a series of legislation related to carbon dioxide projects in the 2025 session.
The outcome of the bill’s failure highlights ongoing debates surrounding taxation and environmental initiatives within the state’s legislative sessions.
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