Coal valuation-intercompany/affiliate sales.

03LSO-0042.C1

                                                         

FISCAL NOTE (HB0008)

 

 

 

FY 2004

FY 2005

FY 2006

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase:

 

 

 

BUDGET RESERVE ACCOUNT

230,000

450,000

450,000

GENERAL FUND

110,000

220,000

220,000

PERM. MINERAL TRUST FUND

90,000

180,000

180,000

 

Source of revenue increase: severance tax on coal production

 

Assumptions:

 

  1. The above estimates are based on October 2002 CREG projections and the following assumptions:

¨      Production levels remain constant for affected mining operations.

¨      Direct cost ratios remain constant.

¨      Price differentials between comparable contracts and current methods remain constant.

¨      Only long-term contracts are considered as comparable (over 1 year).

 

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

 

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

 

 

 

 

 

 

 

 

 

 

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

(information provided by Randy Bolles/Craig Grenvik, Dept of Revenue; phone 777-5237)