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"If an organization is directly paying someone to come and do activities on their behalf, even protesting — if they're receiving income and they're here in North Dakota performing activities for an organization, they owe income tax from Day One," Mr. Rauschenberger said. "And that entity should be issuing 1099s. Just like a contractor."

North Dakota wants hired pipeline protesters to pay state income taxes →

Carlson and Tax Commissioner Ryan Rauschenberger said if the triggers had gone into effect, the state would already have lost about $450 million in the past year.

Tribes threaten to pull out of oil tax agreement with state →

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