North Dakota § 57-38-59.4 Withholding requirement for oil and gas royalty payments to nonresidents

North Dakota Statutes

§ 57-38-59.4 — Withholding requirement for oil and gas royalty payments to nonresidents

North Dakota § 57-38-59.4

Title 57Taxation

Ch. 57-38Income Tax

This text of North Dakota § 57-38-59.4 (Withholding requirement for oil and gas royalty payments to nonresidents) is published on Counsel Stack Legal Research, covering North Dakota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.D. Cent. Code § 57-38-59.4 (2026).

Text

nonresidents.

1.For purposes of this section:

a."Publicly traded partnership" means a publicly traded partnership as defined in section 7704 of the Internal Revenue Code [26 U.S.C. 7704] which is not treated as a corporation.

b."Remitter" means any person who distributes royalty payments to royalty owners.

c."Royalty owner" means a person or entity entitled to receive periodic royalty payments for a nonworking interest in the production of oil or gas.

2.Except as provided in subsection 3, each remitter shall deduct and withhold from the gross amount of the royalty payment made to each nonresident individual or business entity that does not have its commercial domicile in this state at the highest marginal rate in section 57-38-30.3 minus three-fourths of one percent. Sections 57-38-59

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nonresidents.
1. For purposes of this section:
a. "Publicly traded partnership" means a publicly traded partnership as defined in
section 7704 of the Internal Revenue Code [26 U.S.C. 7704] which is not treated
as a corporation.
b. "Remitter" means any person who distributes royalty payments to royalty owners.
c. "Royalty owner" means a person or entity entitled to receive periodic royalty
payments for a nonworking interest in the production of oil or gas.
2. Except as provided in subsection 3, each remitter shall deduct and withhold from the
gross amount of the royalty payment made to each nonresident individual or business
entity that does not have its commercial domicile in this state at the highest marginal
rate in section 57-38-30.3 minus three-fourths of one percent. Sections 57-38-59 and
57-38-60 apply to the filing of the returns and payment of the tax under this
subsection.
3. This section does not apply to royalty payments made to a royalty owner if the royalty
owner is:
a. The United States or an agency of the federal government, this state or a political
subdivision of this state, or another state or a political subdivision of another
state;
b. A federally recognized Indian tribe with respect to on-reservation oil and gas
production pursuant to a lease entered under the Indian Mineral Leasing Act of
1938 [25 U.S.C. 396a through 396g];
c. The United States as trustee for individual Indians;
d. A publicly traded partnership;
e. An organization that is exempt from the tax under this chapter; or
f. The same person or entity as the remitter.
4. a. This section does not apply to a remitter that produced less than three hundred
fifty thousand barrels of oil or less than five hundred million cubic feet of gas in
the preceding calendar year as certified to the tax commissioner in the manner
and on forms prescribed by the tax commissioner.
b. Each remitter that is exempt from withholding under this subsection shall make
an annual return to report royalty payments that exceed the dollar amounts in
subsection 6 and must be reported in the same manner as provided in section