Bismarck-There has been no potash produced yet in North Dakota, but with interest being shown for such development the legislature is being urged to make changes in the state tax structure. A bill in the house finance and taxation committee would impose a 4 percent tax on the gross value of all subsurface mineral produced during the processing of potash produced within the state. Eighty percent of the tax would be used to reduce individual income tax rates, and 20 percent would go to potash and byproduct-producing counties. A potash processing plant would not be required to pay property tax, which drew some objections from at least one legislator. State Geologist Ed Murphy said he hasn’t been involved with the tax proposal, but remarked that “I know the company exploring for potash was given an opportunity to comment on it during an interim taxation committee hearing. My impression is that they did not oppose it. I know also the committee is looking at taxing structures in other states as well.” The North Dakota County Officials Association hasn’t taken a position, but its spokesman, Jeff Eslinger, told Green Markets that the concern is potash could follow the pattern of oil extraction. “Now that we’re having a bit of an oil boom, trucks are beating up the roads and the taxes we get from oil extraction have not been adequate,” Eslinger pointed out. “We just don’t want to see a similar situation with other minerals such as potash.” On Jan. 24, the company that is exploring for potash in the state, UK-based Sirius Minerals Plc, said its first hole has confirmed the continuity of the Saskatchewan potash beds into North Dakota and to its Dakota Salt project. “Sirius is now working with its technical team to properly analyze and interpret these results to plan the next phase of our ongoing exploration activities in North Dakota,” said Chris Fraser, Sirius managing director.
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