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Committee adopts amendment cutting new energy severance tax rate to 2% for new contracts; bill later fails in committee and is tabled
Summary
An amendment to House Bill 326 reduced the proposed new energy severance tax rate from 10% to 2% for new contracts and passed the committee 12–9; after debate the full bill as amended failed 8–13 and the committee tabled it.
Committee staff explained that the amendment to House Bill 326 revises the proposed energy severance tax by lowering the new tax rate from 10% to 2% and limiting the change to new contracts entered into after the effective date. Megan Moore told members the amendment "revises the tax rate for the new energy severance tax from 10% to 2%" and clarifies applicability to new contracts only.
Members debated the scope and competitive effects. Representative Thane warned the exemption language and distinctions with existing coal severance taxes could create confusion: "the coal severance tax is a tax based on digging the coal out of the ground. It has nothing to do with the generation of electricity from coal." Representative Konauer and others raised concerns that exempting generation from certain fuels could distort markets and affect mining-dependent communities.
The committee adopted the amendment on a roll-call vote of 12–9. When the bill as amended was put to a final roll-call vote in committee, it failed 8–13. Representative Thane then moved to table the bill; the committee voice-voted to table HB 326 (clerk recorded proxies and announced 21 aye, 0 no), so the bill will not advance while tabled.
The record shows members weighed energy-market impacts, exemptions for coal generation, and potential job and tax-revenue trade-offs during debate.
