Coal valuation. |
03LSO-0180.L2 |
FISCAL NOTE (HB0218)
|
FY 2005 |
FY 2006 |
|
NON-ADMINISTRATIVE IMPACT |
|
|
|
Anticipated Revenue Increase: |
|
|
|
BUDGET RESERVE ACCOUNT |
550,000 |
1,130,000 |
1,160,000 |
GENERAL FUND |
280,000 |
570,000 |
580,000 |
PERM. MINERAL TRUST FUND |
230,000 |
470,000 |
480,000 |
Source of revenue increase:
Severance taxes on coal production, based on projected increase in direct cost ratios due to inclusion of coal lease bonus payments as a direct mining cost.
Assumptions:
¨ CREG price and production projections occur uniformly for all producers.
¨ Incremental costs of coal lease bonuses, direct mining costs, direct processing costs, and direct transportation costs do not change the direct cost ratio disproportionately with increased production.
¨ Beginning in 2003, the only depletion in financial records for the producers in question will be will be coal lease bonus payments depletion.
¨ No new coal lease bonus payment depletion was included in the estimates.
Prepared by: Dean Temte, LSO Phone: 777-7881
(information provided by Randy Bolles/Craig Grenvik, Dept of Revenue;
phone 777-5237)