Coal severance tax.

03LSO-0422.L1

                                                         

FISCAL NOTE (HB0179)

 

 

 

FY 2004

FY 2005

FY 2006

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase:

 

 

 

PERM. MINERAL TRUST FUND

46,077,000

47,088,000

48,153,000

 

 

Source of revenue increase:

 

Additional three percent severance tax on coal (from 7 percent to 10 percent for surface coal, and from 3.75 percent to 6.75 percent for underground coal)

 

Assumptions:

 

The above estimates are based on the projected assessed valuation of coal from the January 2003 CREG forecast.

 

No underground coal production is projected for FY 2004-2006.

 

3.3 percent of assessed valuation qualifies for the Coal Equity Act ($.60 severance tax per ton limitation), based on average historical percentage.

 

Coal sales through contracts qualifying for the Coal Equity Act will continue through FY 2006.

 

Severance tax collected under the Coal Equity Act remains constant for FY 2004-2006.

 

Additional three percent severance tax on coal effective from July 1, 2003 (FY04) until June 30, 2008 (FY08).

 

 

 

 

 

 

 

 

 

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

(Information provided by Randy Bolles, Dept. of Rev.; phone 777-5237)