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<br />~ <br /> <br />Severance Tax Trust Fund <br /> <br />- <br /> <br />The Severance Tax Trust Fund was created in 1978 "... to be perpetual and held in trust <br />as a replacement for depleted natural resources and for the development and conservation of the <br />state's water resources pursuant to sections 37-60-106 (1) (j) and (1) (I), 37-60-119, and 37-60- <br />122, C.R.S...." <br /> <br />The above citations refer to the Colorado Water Conservation Board's Water Project <br />Construction Loan Program supported by the CWCB Construction Fund. <br /> <br />However, an the money transferred to the Severance Tax Trust Fund was used for other <br />purposes such as capital construction, a federal Uranium MiJI Tailings Remedial Action Plan <br />(UMTRAP), and to offset general fund budget shortfans. Furthermore, the previous law required <br />an interest from investments to revert to the General Fund. Consequently, no water projects wer e <br />ever proposed to be financed through the Severance Tax Trust Fund. <br /> <br />Senate BiJI 96-170 <br /> <br />. <br /> <br />Senate Bill 96-170, concerning the Severance Tax Trust Fund, was signed into law by <br />Governor Romer on May 23, 1996. SB 96-170 reaffirmed the fund's original purpose and <br />expanded the use of the fund for" .. .funding programs that promote and encourage sound natural <br />resource planning, management, and development related to minerals, energy, geology, and <br />water. " <br /> <br />The bin also created two new accounts within the fund and made an ap propriation for FY <br />97. The two new accounts are: <br /> <br />. The Perpetual Base Account <br /> <br />. The Operational Account <br /> <br />Perpetual Base Account <br /> <br />The moneys in the fund as of July 1, 1995, and one-half of the severance tax receipts <br />credited to the Severance Tax Trust Fund for fiscal years commencing on and after July 1, 1995, <br />shall be credited to the Perpetual Base Account of the Severance Tax Trust Fund and used for <br />state water projects pursuant to sections 37-60-119 and 37-60-122, C.R.S. The authorization and <br />contract for each such project shan require repayment of principal and interest to the Severance <br />Tax Trust Fund and moneys so repaid shall be credited to the Perpetual Base Account of the <br />Severance Tax Trust Fund. <br /> <br />. <br /> <br />3 <br />