BISMARCK - The bill that would eliminate excise taxes for purchasing or leasing new vehicles from Ford, General Motors or Chrysler was heard before the House Transportation Committee on Friday. Rep. Lisa Wolf, D-Minot, is the primary sponsor for the bill, which would eliminate sales and use tax on purchasing or leasing new Chrysler, Ford or GM vehicles for a year.

"I have been told over and over again that every new Ford, Chrysler or General Motors vehicle sold in our state makes a difference to the Big Three," Wolf said. "They need vehicles to sell. Each and every one makes a difference. North Dakota can make a difference and we are in a very unique position to do so."

Discussion during the hearing uncovered the possibility of an unintended consequence to cities and counties. Because a portion of the sales and excise tax goes to those political subdivisions, eliminating or reducing the sales and use tax on these vehicles could mean less money for local governments.

"While the state is looking at a surplus, that is not the case for the political subdivisions," said Jerry Hjelmstad, deputy director of the North Dakota League of Cities.

The bill was discussed in committee and was given a "do-not-pass" recommendation by a vote of 10 to 3. It will be discussed next by the full House. While it hasn't yet been placed on the calendar, Rep. Dan Ruby, R-Minot, said after the hearing it might be put on the calendar quickly because some people are waiting to see what happens with the bill before they purchase new vehicles.