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February 3, 2005

Producer Fuel Tax Refund Helps Agriculture Research

North Dakota farm producers and industrial consumers can apply for a refund of the fuel taxes they paid on gasoline or gasohol purchased during 2004. Those who request the refund can get back 13 of the 21-cents-per-gallon state tax. The remaining 8 cents is split four ways, including two agriculture-related programs.

“It is important to us that they ask for the refund,” says Tom Archbold, State Board of Agricultural Research and Education (SBARE) chair. “The money is used to help fund research through the agriculture research fund created by the 1997 Legislature. The 21-cents goes to highway funds if the refund isn’t requested.”

Four cents goes to the agriculture research fund. SBARE then determines the agriculture research projects that will be funded through a competitive process. During the last fiscal year, $468,000 in refunds were transferred to the agriculture research fund. The funds are used for research projects in animal agriculture and hay, barley, canola, corn, dry beans, flax, new and emerging crops, potatoes, soybeans, sugar beets, sunflowers and wheat.

“Those eligible need to request the refund before funds can be distributed into the research fund,” Archbold says. “Without the research fund money, vital research benefiting the state’s producers may not get funded.”

Producers and industrial consumers are eligible for a refund if they paid taxes on gasoline or gasohol used in industrial or nonlicensed agricultural or industrial equipment, such as combines, tractors, construction equipment and any other nonlicensed machinery.

The Agricultural Products Utilization Commission is allocated 2 cents, a cent is earmarked for the township highway fund and a cent is provided to the state’s ethanol plants.

The deadline for applying for the refund is June 30, but those eligible can apply for an extension through the North Dakota Tax Department.

The Legislature, in 1997, established the State Board of Agricultural Research. The board is responsible for budgeting and policy-making associated with the supervision of the North Dakota Agricultural Experiment Station. During the 1999 legislative session, the law was changed to include responsibility for the North Dakota State University Extension Service. The name of the board also was changed to its present State Board of Agricultural Research and Education.

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Source: Tom Archbold, (701) 241-8223, Thomas.archbold@usbank.com
Editor: Rich Mattern, (701) 231-6136, richard.mattern@ndsu.edu


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