Possible Ethanol Tax Decrease for North Dakota

[RenewableEnergyAccess.com] Majority House Leader Rep. Rick Berg of Fargo, North Dakota introduced a bill to the Legislative Assembly that recommends amending the current fuel tax to reduce the ethanol fuel tax in the state from 21 cents per gallon to 1 cent per gallon. Ethanol is used in the alternative fuel mix E85 (85 percent ethanol) which is sold at a few filling stations in the state. North Dakota is a leading producer of soybeans and corn, which are used in the production of ethanol, according to the testimony of Agriculture Commissioner Roger Johnson. A tax reduction could help promote both the production and sale of ethanol, Johnson stated in his testimony. Taxes for other fuels would remain at the 21 cents. Fuel taxes normally go to the highway tax distribution fund, but wording in the amendment would separate the ethanol tax into a township highway aid fund. The amendment went before the Finance and Taxation committee on the morning of January 25. If approved, the amendment would go into effect on June 30, 2005.
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