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Commission discusses state law to raise mineral severance tax; asks staff for revenue estimate
Summary
Commissioners reviewed a recently passed state provision allowing counties to raise the mineral severance tax by 5¢ increments every five years up to 30¢ (currently 15¢). Commissioners asked staff for revenue estimates and confirmation that the state Department of Revenue would collect the tax.
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The commission discussed whether to pursue an increase in the county's mineral severance tax after a state law change permitted incremental increases. "The legislator passed this year where we can raise the mineral severance tax 5 it's 5¢ every 5 years up to a maximum of 30¢. Right now, we're at 15¢," said Mr. Hodges, the item presenter. He told commissioners the change would amount to 5¢ per ton from local quarries and said local stakeholders such as the Road Builders Association support it. Commissioners asked for follow-up information on projected revenue and administration. One commissioner asked, "Is this money does this go to paving or just your general or anything you need?" Mr. Hodges said he believed current mineral severance receipts primarily go to debt service and that the additional revenue would be used to help pay capital outlay debt, but he said he would confirm details with county finance staff. Commissioner Reagan (questioning procedure) asked whether the increase requires anything beyond a two-thirds vote of the commission; Mr. Hodges and other staff said they would confirm requirements. County staff later noted the draft resolution indicates the tax would be collected by the state Department of Revenue. Next steps: Commissioners asked staff to provide a revenue estimate (Mr. Hodges said he would consult Mr. Hall for numbers), confirm collection and distribution mechanics with the state Department of Revenue and report back. A motion to proceed with the matter was made by Commissioner Grace, seconded by Commissioner Grove, and passed by voice vote at the meeting.

