Coal severance tax industry factor.

12LSO-0122.C1

                                                         

FISCAL NOTE

 

 

FY 2013

FY 2014

FY 2015

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue (Decrease):

 

 

 

BUDGET RESERVE ACCOUNT  

(550,000)

(1,150,000)

(1,780,000)

GENERAL FUND            

(270,000)

(580,000)

(890,000)

PERM. MINERAL TRUST FUND

(600,000)

(1,110,000)

(1,640,000)

SCHOOL FOUNDATION FUND  

0

(170,000)

(400,000)

AD VALOREM TAX          

0

(750,000)

(1,680,000)

 

Source of revenue decrease:

 

Reduced assessed value of coal production

 

 

Assumptions:

 

The above estimates are based on coal production volume and price projections from the January 2012 CREG estimates.

 

It is assumed that coal direct cost ratios will continue on historic trends.

 

Reduced assessed value of coal production will reduce both severance taxes collected by the Department of Revenue and ad valorem taxes collected by counties, including the 12 mills distributed to the School Foundation Program.

 

The coal industry factors proposed in this bill would be effective for coal produced on or after January 1, 2012.

 

Reduction of the assessed value of 2012 coal production will result in reduced ad valorem taxes collected beginning in FY 2014.

 

Reduction of the assessed value of 2012 coal production will also decrease severance taxes for the last 6 months of FY 2012. The severance tax decreases in FY 2012 are estimated below:

 

 

FY 2012

NON-ADMINISTRATIVE IMPACT

 

Anticipated Revenue (Decrease):

 

BUDGET RESERVE ACCOUNT  

(130,000)

GENERAL FUND            

(60,000)

PERM. MINERAL TRUST FUND

(180,000)

 

 

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NOTICE-AGENCY ESTIMATE OF ADMINISTRATIVE IMPACT REQUESTED

 

This bill has administrative impact that appears to increase (or decrease) duties or responsibilities of one or more state agencies and may impact agency spending or staffing requirements. As introduced, the bill does not modify any state agency budget or current personnel authorizations.

The following state agencies will be asked to provide their estimate of the administrative fiscal impact prior to the first committee meeting held to consider the bill:

 

Department of Audit

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(Information provided by Craig Grenvik, Dept. of Revenue; 777-5237:

Steve Dilsaver, Dept. of Audit; 777-6007)