WSP10086

• File Number: 8040.100
• Description: Section D General Studies - Power
• State: CO
• Basin: Statewide
• Date: 3/1/1976
• Author: HUD
• Title: Rapid Growth from Energy Projects - Ideas for State and Local Action
• Water Supply Pro - Doc Type: Report/Study

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problems, the Minnesota Legislature created a pro-
cedure for distributing a portion of the new tax base
of industrial and commercial development among all
local governments in the Twin Cities (Minneapolis/
St. Paul) Metropolitan Area.
Forty per cent of the net growth in commercial!
industrial value will be "pooled" for bookkeeping
purposes, and each community will receive a share of
that pool. Each community's share is assigned in
proportion to its population, and is adjusted inversely
to its assessed valuation, so that it receives a larger
proportion if its per capita property valuation is below
the metropolitan average, and a smaller proportion if
above.
With this regional system, no additional tax is im.
posed on companies. No new taxing agency is created
so that taxing units retain their autonomy and con-
tinue to set their own tax rates.

Refer to: "Fiscal Disparities Bill," (An Act Relating
to Metropolitan Development). Chapter
24,1971. Extra Session. Charge -$2.05

Obtain
from:

Documents Section, 140 Centennial
Building, St. Paul. Minnesota 55155

Optional Sales Tax: State of Wyoming
Impacts are most severe in the cities. Cities are also
the site of most retail sales. A tax on retail sales could
be a big source of revenues for cities. Many States
have a State-wide sales tax, with a portion of the reo
ceipts returned to cities. Wyoming, for example, has
a three per cent tax, with one cent returned to cities
and counties. In addition, the State allows cities and
counties, by a vote o!~h~people to impose an optional
one cent sales tax, which goes directly to the place of
sale.
The impact of this additional tax, which makes the
total tax four per cent, can be substantial. In Green
River, the optional tax will bring in $550,000 this
year, almost 45 per cent of the total operating budget.
In Rock Springs, over $2 million will be collected,
out of a total budget of $5.6 million. The optional
sates tax for Wyoming must be passed county-wide.
Voter approval is for two years only, and it must be
voted on again to continue another two years.

Sharing of Energy Project Property Taxes: Wisconsin
If the impacts (costs) and benefits (revenues) of
energy projects are in different jurisdictions, how do
we get the needed sharing of revenues? The body with
the tax income is unlikely to voluntarily give it to the
body in need. The State of Wisconsin in 1971 adopted
a plan for State-wide sharing of all property tax revenues
from energy plants.
A tax rate, equal to the State-wide average of all
State, county and local taxes, is applied to the full

market value of the utilities' taxable property. This
payment is in lieu of all other taxes except special
assessments. The money is distributed to the State
and local governments under a complicated formula.
The results State. wide for 1973 were as follows:

Recipients

Amount
Per Cent (Millions)

State of Wisconsin

Local Jurisdictions in
Which Plant is Located

6.7% $ 2.7

Counties
Municipalities
School Districts

All Local Governments

18.5 7.5
16.9 6.9
9.6 3.9
7.8 3.2
40.5 16.5

Counties
Municipalities

Refer to: Chapter 76, Wisconsin Statutes, 1971

Contact: Secretary, Department of Local Affairs &
Development, 123 West Washi ngton
Avenue, Madison, Wisconsin 53702.
[phone]

State Grants from Energy Income:
Several Western States have established policies for
the use of income from the two major revenue ser-
vices for energy development:

Each State gets 37% per cent of the money paid
within its boundaries for leasing Federal land for
mining purposes, e.g., coal and oil shale. Under
the Mineral Leasing Act, this money must be spent
for schools and roads. Colorado has received $24
million this year for oil shale which is being held
in escroW pending actual impacts. The money will
be spent in impacted areas.
Severance taxes on the mining of coal have been
adopted by most if not all States with coal acreage,
for example:

Montana: 20 percent on lignite, 30 per cent on other
coal; 17% per cent goes to impacted communities;
10 per cent to education; 4 per cent to county;
North Dakota: 50t per ton coal tax; 35 per cent goes
to impacted areas for capital and operating costs;
Wyommg: Up to 2 per cent tax goes to roads, water
and sewer systems in impacted communities (see
page 32).

Prepayment of Sales Taxes: State of Utah
One of the suggested ways of beating the "front-
end" money problem is to let energy companies pay

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