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CHAPTERTHREE Affected Environment ' Federal Mineral Lease Royalties Federal mineral lease royalties would be collected from sodium mining operations located on federally admitvstered public lands. Currently, the federal royalty rate is 5 percent of the gzoss value of the sodium minerals produced. Federal mineral leasing regulations require the return of 50 percent of royalties collected from these operations to the state of origin. The 50 percent federal shaze of the royalties collected goes to the U.S. Bureau of Reclamation and the U.S. Treasury. In 1996, federal mineral lease royalty payments to the State of Colorado for al] minerals amounted to $32,394,356, of which roughly $800,000 was paid to Rio Blanco County and $330,000 was paid to Garfield County. In 1997, Rio Blanco County received approximately $1,200,000 and Garfield County received roughly $600,000 in federal mineral lease royalty payments (Steigers 1998b). For each county, federal mineral royalty payments aze divided among the county governments, local school districts, and local municipalities. In 1997, within Rio Blanco County, the County government received over $363,000, equal to about 30 percent of the total county payments. School districts RE-1 and RE-4 together received $480,000, and the Towns of M~~eker and Rangely each received $169,000 and $187,000, respectively. Within Garfield County, the county government received neazly $319,000 or about 53 percent of the county total. Various school districts received a combined total of $67,000. Sales and Use Tax Revenue Sales taxes aze paid by mining operations when purchases of equipment, materials, or supplies are made in the local area. Examples of purchases that generate sales tax revenue include gravel, pipe, fuel, and other supplies purchased locally. Currently, the total sales tax rate in Rio Blanco County, including the cities of Meeker and Rangely, is 5 percent (3 percent state, 2 percent county). In 1997, total sales taxe:~ collected in Rio Blanco County amounted to approximately $945,000 for the State of Colorado and $648,000 for the county (Steigers 1998b). The sales tax rate in unincorporated Garfield County is currently 4 percent with rates higher in various incorporated cities in the county. For unincorporated portions of Ga~eld County, sales taxes collected in 1997 amounted to about $2 million for the county specifically. Use tax is collected by Rio Blanco County on materials purchased outside of the county. Rio Blanco County chazges a 2 percent use tax on these materials. In 1997, Rio Blanco County collected approximately $343,000 in use tax revenue (RBCA 1998). The use tax rate within the City of Rifle is 2.5 percent. The City of Rifle collected $175,923 in use tax revemie in 1997. There is no use tax levied in unincorporated Garfield County (Steigers 1998b). Severance Tax The State of Colorado levies a severance tax against the proceeds of the sale of va~zous minerals produced in the state. In 1997, total severance taxes paid to the State of Colorado for production of oil and gas, coal, and other minerals amounted to approximately $30 mi]-ion (Steigers 1998b). 3-62 Socioeconomics