BOARD00886

• Board Meeting Date: 3/29/1999
• Description: Severance Tax Legislation
• Board Meetings - Doc Type: Memo

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OFFICE OF THE EXECUTIVE DIRECTOR

STATE OF COLORADO
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Department of Natural Resources
1313 Sherman Street, Room 718
Denver, Colorado 80203
Phone: [phone]
TDD: (3031 866-3543
Fax: [phone]

DEPARTMENT OF
NATURAL
RESOURCES

MEMORANDUM

Bill Owens
Governor

TO:

GregE.Walcher
Executive Director

CWCB members

FROM:

Dan McAuliffe

DATE:

March 18, 1999

RE:

Agenda Item 22 d. - Severance Tax Legislation

Two bills were introduced that would impact the Operational and Perpetual Account of
the state Severance Tax Trust Fund, The CWCB may request up to five percent of the
funds in Operational Account for water planning activities and may use the funds in the
Perpetual Account to loan money for water project construction through the passage of
the Construction Fund bill,

HB 99-1233 sought to extend the local government "safety-net" (a legal mechanism that
allows money to be transferred from the state trust fund to the Local Government Trust
Fund when gas, oil and C02 revenues fall below a certain level). Consideration of HB
99-1233 was post-phoned indefinitely (PI'd) by the House Finance Committee on March
3.

HB 99-1249 increases the tax exemptions for coal. gold and molybdenum. HB 99-1249
passed the state House of Representatives on Marcl:118. and was assigned to the Senate
Finance and Appropriations Committees.

The Owens Administration has taken an official position on this legislation. This position
is expressed in the attached memo signed by DNR Executive Director Greg Walcher and
Department of Local Affairs Executive Director Bob Brooks. This memo illustrates the
financial impact the passage of the bill would have on the CWCB.

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Board of Land Commissioners. Division of Minerals & Geology/Geological Survey
Oil & Gas Conservation Commission. Colorado State Parks. Soil Conservation Board
Water Conservation Board. Division of Water Resources. Division of Wildlife