Rep. Norm Thurston — Voting Record

Bill

Number

S.B. 256 (2023GS)

Sponsor

Sen. Hinkins, D.

Final action

Governor Signed 3/23/2023

Outcome

Became law — signed by Gov. Spencer J. Cox

Summary

What it does

• This bill:
• clarifies the timing for the deposit of severance tax revenue into state agency accounts.

Every vote on this bill

Bill text

SEVERANCE TAX REVENUE AMENDMENTS
GENERAL SESSION
STATE OF UTAH
Chief Sponsor: David P. Hinkins
House Sponsor: 
Steven J. Lund
LONG TITLE
General Description:
This bill modifies provisions related to the deposit of severance tax revenue into state
agency accounts.
Highlighted Provisions:
This bill:
▸ clarifies the timing for the deposit of severance tax revenue into state agency
accounts.
Money Appropriated in this Bill:
None
Other Special Clauses:
This bill provides retrospective operation.
Utah Code Sections Affected:
AMENDS:
51-9-306
, as enacted by Laws of Utah 2021, Chapter 401
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 
51-9-306
 is amended to read:
51-9-306.
Deposit of certain severance tax revenue for specified state agencies.
(1) As used in this section:
(a) "Aggregate annual revenue" means the aggregate annual revenue collected in a
fiscal year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas, and
Mining, after subtracting the amounts required to be distributed under Sections 
51-9-305
,
59-5-116
, and 
59-5-119
.
(b) "Aggregate annual mining revenue" means the aggregate annual revenue collected
in a fiscal year from taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance Tax,
after subtracting the amounts required to be distributed under Section 
51-9-305
.
(c) "Aggregate annual oil and gas revenue" means the aggregate annual revenue
collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil and Gas
Severance Tax, after subtracting the amounts required to be distributed under Sections
51-9-305
, 
59-5-116
, and 
59-5-119
.
(d) "Average aggregate annual revenue" means the three-year rolling average of the
aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59,
Chapter 5, Severance Tax on Oil, Gas, and Mining:
(i) after subtracting the amounts required to be distributed under Sections 
51-9-305
,
59-5-116
, and 
59-5-119
; and
(ii) ending in the fiscal year immediately preceding 
the fiscal year of
 a deposit required
by this section.
(e) "Average aggregate annual mining revenue" means the three-year rolling average of
the aggregate annual revenue collected in a fiscal year from the taxes imposed under Title 59,
Chapter 5, Part 2, Mining Severance Tax:
(i) after subtracting the amounts required to be distributed under Section 
51-9-305
; and
(ii) ending in the fiscal year immediately preceding 
the fiscal year of
 a deposit required
by this section.
(f) "Average aggregate annual oil and gas revenue" means the three-year rolling
average of the aggregate annual revenue collected in a fiscal year from the taxes imposed under
Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax:
(i) after subtracting the amounts required to be distributed under Sections 
51-9-305
,
59-5-116
, and 
59-5-119
; and
(ii) ending in the fiscal year immediately preceding 
the fiscal year of
 a deposit required
by this section.
(2) After making the deposits of oil and gas severance tax revenue as required under
Sections 
59-5-116
 and 
59-5-119
 and making the credits under Section 
51-9-305
, 
for a fiscal
year
 beginning on 
or after
 July 1, 2021, the State Tax Commission shall annually make the
following deposits:
(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
Section 
19-2a-106
, the following average aggregate annual revenue:
(i) 2.75% of the first $50,000,000 of the average aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000;
(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created
in Section 
19-5-126
, the following average aggregate annual revenue:
(i) .4% of the first $50,000,000 of the average aggregate annual revenue;
(ii) .15% of the next $50,000,000 of the average aggregate annual revenue; and
(iii) .08% of the average aggregate annual revenue that exceeds $100,000,000;
(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
40-6-23
, the following:
(i) (A) 11.5% of the first $50,000,000 of the average aggregate annual mining revenue;
(B) 3% of the next $50,000,000 of the average aggregate annual mining revenue; and
(C) 1% of the average aggregate annual mining revenue that exceeds $100,000,000;
and
(ii) (A) 18% of the first $50,000,000 of the average aggregate annual oil and gas
revenue;
(B) 3% of the next $50,000,000 of the average aggregate annual oil and gas revenue;
and
(C) 1% of the average aggregate annual oil and gas revenue that exceeds $100,000,000;
and
(d) to the Utah Geological Survey Oil, Gas, and Mining Restricted Account, created in
Section 
79-3-403
, the following average aggregate annual revenue:
(i) 2.5% of the first $50,000,000 of the average aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000.
(3) If the money collected in a fiscal year from the taxes imposed under Title 59,
Chapter 5, Severance Tax on Oil, Gas, and Mining, is insufficient to make the deposits
required by Subsection (2), the State Tax Commission shall deposit money collected in the
fiscal year as follows:
(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
Section 
19-2a-106
, the following revenue:
(i) 2.75% of the first $50,000,000 of the aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
(iii) .5% of the aggregate annual revenue that exceeds $100,000,000;
(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created
in Section 
19-5-126
, the following revenue:
(i) .4% of the first $50,000,000 of the aggregate annual revenue;
(ii) .15% of the next $50,000,000 of the aggregate annual revenue; and
(iii) .08% of the aggregate annual revenue that exceeds $100,000,000;
(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
40-6-23
, the following:
(i) (A) 11.5% of the first $50,000,000 of the aggregate annual mining revenue;
(B) 3% of the next $50,000,000 of the aggregate annual mining revenue; and
(C) 1% of the aggregate annual mining revenue that exceeds $100,000,000; and
(ii) (A) 18% of the first $50,000,000 of the aggregate annual oil and gas revenue;
(B) 3% of the next $50,000,000 of the aggregate annual oil and gas revenue; and
(C) 1% of the aggregate annual oil and gas revenue that exceeds $100,000,000; and
(d) to the Utah Geological Survey Oil, Gas, and Mining Restricted Account, created in
Section 
79-3-403
, the following revenue:
(i) 2.5% of the first $50,000,000 of the aggregate annual revenue;
(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
(iii) .5% of the aggregate annual revenue that exceeds $100,000,000.
(4) The severance tax revenues deposited under this section into restricted accounts for
the state agencies specified in Subsection (2) and appropriated from the restricted accounts
offset and supplant General Fund appropriations used to pay the costs of programs or projects
administered by the state agencies that are primarily related to oil, gas, and mining.
Section 2. 
Retrospective operation.
This bill provides retrospective operation to July 1, 2021.