Trona valuation.

03LSO-0039.C1

                                                         

FISCAL NOTE (HB0006)

 

 

 

FY 2004

FY 2005

FY 2006

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Decrease:

 

 

 

BUDGET RESERVE ACCOUNT

200,000

400,000

400,000

GENERAL FUND

100,000

200,000

200,000

 

Source of revenue decrease:

 

Change in valuation method of trona production, resulting in a decrease in severance tax.

 

Assumptions:

 

  1. This bill statutorily sets the industry factor for trona at 32.5%.

 

  1. Estimates are based on October, 2002 CREG projections.

 

  1. Estimates are based on the assumption that the current industry factor of 34.85% would remain constant.

 

  1. This bill will also decrease production tax collected at the county level, resulting in a decrease in local resources available for school funding, and a decrease in the 12 mill state share that goes to the School Foundation Program.

 

  1. This bill will apply to trona production taking place on and after January 1, 2004.

 

 

 

 

 

 

 

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881