Fiscal Note

SB0038S02 - Severance Tax Amendments

State Impact:
Enactment of this bill would transfer funds from the General Fund to the Permanent State Trust Fund beginning in FY 2012. Before the transfer of funds to the Permanent State Trust Fund, the Invasive Species Mitigation Fund, the Rangeland Improvement Fund, the Species Protection Account, and the Department of Natural Resources would receive an earmarked portion of the oil & gas revenue. These earmarks would likely receive $4,400,000 in FY 2012. The transfer would likely be $15,000,000 in FY 2013 and $50,000,000 in FY 2014 from the General Fund to the Permanent State Trust Fund. When the base amounts become zero in FY 2017, all revenue collected from oil, gas, and mining severance taxes would be credited to the Permanent State Trust Fund rather than the General Fund. The expected amount is $99,000,000 in FY 2017.

Individual, Business and/or Local Impact:
Individuals, businesses, and local taxing entities located in impacted areas will benefit by having greater funds available for projects related to capital and infrastructure development and economic diversification.

3/2/2009, 4:25:07 PM, Lead Analyst: Young, T.Office of the Legislative Fiscal Analyst