Severance tax distributions. |
11LSO-0176.L1 |
FISCAL NOTE
Sources of revenue increase (decrease):
Increase in severance tax distribution cap from $155 million to $175 million;
Decrease in under-the-cap General Fund distribution percentage from 62.26 percent to 50.00 percent, and proportionate increases in under-the-cap distribution percentages to local government accounts by a total of 12.26 percent;
Assumptions:
The above estimates are based on projections from the October 2010 CREG forecast.
The approximate changes in annual severance tax distributions to the specific accounts and entities are reflected in the table above. These annual revenue changes are summarized below:
Annual increase - Highway Fund $ 800,000
Annual combined increase - Water Dev. Account I, II and III $ 3,000,000
Annual combined increase - local government accounts $25,200,000
Annual combined decrease - General Fund/Budget Reserve ($29,000,000)
This bill goes into effect on July 1, 2011, impacting severance tax distributions beginning in FY 2012.
Prepared by: Dean Temte, LSO Phone: 777-7881