Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Taxation topic
No spam. Unsubscribe anytime.
Debate intensifies over severance-tax increase targeting mining profits; House approves amended measure
Summary
Lawmakers debated a severance-tax increase (House Bill 250) that supporters said would modestly raise extraction taxes on mining and opponents warned could threaten jobs at Kennecott; after lengthy debate the House passed the amended bill and referred it to the Senate.
House Bill 250 drew extended floor debate Feb. 13, 1990 as members weighed the measure’s potential economic impact against projected state revenue and fiscal fairness.
Opponents, including Representative Lewis, warned the change would hit Kennecott employees and local suppliers. "Before we take this step, I think we need to give them the opportunity to restore the concessions to the employees," Representative Lewis said, arguing for caution given upcoming labor negotiations.
Supporters such as Representative Maxfield and Representative Stevens argued the proposed increase is modest compared with typical extraction-tax rates and that prior profit levels justify the adjustment. Representative Maxfield quoted published profit figures for mining companies to illustrate capacity to bear a modest increase.
Speakers raised potential impacts on jobs, contract negotiations and the local economy. Debate cited payroll figures, profit estimates and multipliers to underscore economic stakes. After debate the House voted and passed the bill as amended and transmitted it to the Senate for consideration.
