Severance tax-uranium.

03LSO-0170.C1

FISCAL NOTE (HB0015)

	FY 2004	FY 2005	FY 2006
NON-ADMINISTRATIVE IMPACT
Anticipated Revenue Decrease:
BUDGET RESERVE ACCOUNT	240,000	240,000	240,000
GENERAL FUND	120,000	120,000	120,000

Source of revenue decrease:

Extension of severance tax incentive on uranium

Assumptions:

The severance tax rates on uranium production, as established by the current severance tax incentive in W.S. 39-14-505 are as follows:

Uranium Spot Market Price	Tax applied
$14.00 to $15.00	1 percent
$15.01 to $16.00	2 percent
$16.01 to $17.99	3 percent
$18.00 or more	4 percent

The current severance tax incentive on uranium is in effect until March 31, 2003. This bill extends the current severance tax incentive until March 31, 2009.

The above estimates are based on October 2002 CREG projections.

The above estimates are based on the assumption that the uranium spot market price will remain below $14.00/pound through fiscal year 2006.

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

(information provided by Randy Bolles/Craig Grenvik,

Dept. of Revenue; phone 777-5237)