Severance tax cap-increase.                                              06LSO-0225.C1

FISCAL NOTE

 

 

FY 2007

FY 2008

FY 2009

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase (Decrease):

 

 

 

BUDGET RESERVE ACCOUNT

(30,000,000)

(30,000,000)

(30,000,000)

GENERAL FUND

(15,000,000)

(15,000,000)

(15,000,000)

CITIES AND TOWNS DIST

4,200,000

4,200,000

4,200,000

COUNTY DIST

1,700,000

1,700,000

1,700,000

HIGHWAY FUND

2,000,000

2,000,000

2,000,000

HIGHWAY FUND - MULTI-LANE

28,000,000

28,000,000

28,000,000

LOCAL GOVT. CAPCON

1,100,000

1,100,000

1,100,000

STATE AID COUNTY ROADS

1,300,000

1,300,000

1,300,000

WATER DEVELOPMENT I

5,600,000

5,600,000

5,600,000

WATER DEVELOPMENT II

900,000

900,000

900,000

WATER DEVELOPMENT III

200,000

200,000

200,000

 

Source of revenue increase (decrease):

 

This bill does not increase or decrease revenues. It increases the severance tax distribution cap from $155 million to $200 million, and redistributes severance tax revenues under the severance tax distribution cap from the General Fund to the proposed Multi-Lane Highway Account. The net impact to all accounts is zero.

 

Assumptions:

 

The above estimates are based on October 2005 CREG projections.

 

This bill increases the severance tax distribution cap from $155 million to $200 million, decreases the under-the-cap General Fund distribution percentage from 62.26% to 48.25%, and creates a new under-the-cap distribution of 14.01% to the proposed Multi-Lane Highway Account within the Highway Fund.

 

This bill is effective July 1, 2006, and shall apply to distributions of fiscal year 2007 revenues, and thereafter.

 

Please see the attached schedule for additional information.

 

 

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