North Dakota Oil Tax “Gusher” Continues

BISMARCK, N.D. (AP) — North Dakota's budget director says oil tax revenue is running well ahead of what state budget planners expected.

State budget director Pam Sharp says officials had estimated oil tax revenues to be about $5.3 billion when the current two-year budget cycle ends in June 2015.

Sharp says officials are now forecasting the sum to be nearly $7.5 billion.

Forecasters had based their original forecast on 850,000 barrels of oil per day. Oil production in North Dakota is more than 1 million barrels daily.

Thirty percent of the oil tax money goes into a trust fund. Other oil money goes into the state's general treasury, along with special funds for property tax reduction, disasters and building projects.