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Committee approves small increase to local mineral severance tax under new state authorization
Summary
The committee approved RS2025-1327 to increase the local levy on minerals from quarries after a change in state law (House Bill 695) allows local governments to raise the rate every five years. Finance figures cited a past-year yield of roughly $559,000 and an expected first-year increase of about $220,000.
The Transportation & Infrastructure Committee voted to approve a resolution (RS2025-1327) amending prior local authority to raise the mineral severance tax levy on minerals extracted from rock quarries, aligning local code with a state law change that permits periodic local increases.
The sponsor (identified in committee as Council member Hoffman) said the state law change (House Bill 695) allows local governments to increase the levy by five cents every five years beginning July 1. He cited Finance figures that the mineral tax produced about $559,000 through April 30 of fiscal 2025 and that the first-year increase would raise roughly $220,000 in local revenue, according to finance staff.
Committee members asked clarifying questions about the change and its application; special counsel confirmed the city can change the rate only where state law enables it. The committee approved the resolution by a recorded vote of 8-0.
Action: RS2025-1327 approved 8-0.
