First Substitute S.B. 63

Senator Beverly Ann Evans proposes the following substitute bill:

1 SEVERANCE TAX AMENDMENTS
2 2005 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Beverly Ann Evans
5
6 LONG TITLE
7 General Description:
8 This bill amends the Oil and Gas Severance Tax part to address the disposition of
9 revenues collected from the oil and gas severance tax.
10 Highlighted Provisions:
11 This bill:
12 . creates and provides funding for the Oil and Gas Infrastructure Fund;
13 . provides that counties in which oil or gas is produced shall receive a distribution of
14 the revenues collected from the oil and gas severance tax;
15 . grants rulemaking authority to the State Tax Commission;
16 . provides the purposes for which a county legislative body may expend a distribution
17 of revenues; and
18 . makes technical changes.
19 Monies Appropriated in this Bill:
20 None
21 Other Special Clauses:
22 None
23 Utah Code Sections Affected:
24 AMENDS:
25 59-5-115, as last amended by Chapter 135, Laws of Utah 1996

26 ENACTS:
27 59-5-120, Utah Code Annotated 1953
28
29 Be it enacted by the Legislature of the state of Utah:
30 Section 1. Section 59-5-115 is amended to read:
31 59-5-115. Disposition of taxes collected.
32 (1) [All] Except as provided in Subsection (2), all taxes imposed and collected under
33 Section 59-5-102 shall be:
34 (a) paid to the commission[, and];
35 (b) promptly remitted to the state treasurer[,]; and [except those taxes otherwise
36 allocated under Section 59-5-116 or 59-5-119 ,]
37 (c) credited to the General Fund.
38 (2) Notwithstanding Subsection (1), the commission shall deposit the amount required
39 by:
40 (a) Section 59-5-116 into the Uintah Basin Revitalization Fund;
41 (b) Section 59-5-119 into the Navajo Revitalization Fund; and
42 (c) Section 59-5-120 into the Oil and Gas Infrastructure Fund.
43 Section 2. Section 59-5-120 is enacted to read:
44 59-5-120. Oil and Gas Infrastructure Fund -- Creation -- Funding -- Distribution
45 of revenues -- Expenditure of revenues.
46 (1) There is created within the General Fund a restricted special revenue fund known as
47 the Oil and Gas Infrastructure Fund.
48 (2) The Oil and Gas Infrastructure Fund shall be funded by 25% of the revenues
49 generated by taxes under Section 59-5-102 that:
50 (a) are collected for calendar years beginning on or after January 1, 2006; and
51 (b) remain after the deposits required by Subsections 59-5-115 (2)(a) and (b) are made.
52 (3) The commission shall:
53 (a) deposit the revenues described in Subsection (2) into the Oil and Gas Infrastructure
54 Fund on or after the June 1 but before the September 1 of the year after the calendar year for
55 which the revenues are collected; and
56 (b) distribute the revenues from the Oil and Gas Infrastructure Fund to the county

57 legislative bodies of counties in which oil or gas is produced in accordance with Subsections
58 (4) and (5).
59 (4) A county legislative body described in Subsection (3)(b) shall receive a percentage
60 of the revenues described in Subsection (3)(b) in the same proportion that production volumes
61 for oil and gas within that county that are reported to the division for the calendar year for
62 which the revenues are collected bear to the total production volumes for oil and gas within the
63 state that are reported to the division for that same calendar year.
64 (5) In accordance with Title 63, Chapter 46a, Utah Administrative Rulemaking Act, the
65 commission may by rule prescribe procedures for making the distributions required by
66 Subsection (4).
67 (6) A county legislative body that receives a distribution of revenues under this section
68 shall expend the revenues only for the development of infrastructure that is used to support the
69 oil and gas industry as determined by the county legislative body.