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Senate raises mineral severance rates slightly and advances amended bill
Summary
Senate Bill 199, which raises severance tax rates for metals from 2.4% to 2.6% and adjusts valuation percentages for copper and beryllium, passed the Senate after floor debate; sponsor said proceeds would ideally be dedicated to a school trust fund for education programs.
Senate Bill 199, a package of changes to the severance-tax treatment of minerals, was reported out of committee with a long set of amendments and advanced on the Senate floor. Sponsor Senator Hilliard described the bill as increasing the severance-rate for taxed metals from 2.4% to 2.6%, raising copper valuation used for taxation from 20% to 30% of market value, and increasing the beryllium valuation from 15% to 20%.
Hilliard said the intent behind dedicating the new revenue was to create or seed a constitutionally protected trust fund to benefit public education — part of a broader governor-backed education initiative to provide grants to high-performing schools. The sponsor estimated the change would raise roughly $1.9 million, primarily from copper, and defended the adjustments as restoring historical fairness rather than a significant tax increase.
Floor questions discussed the relationship of severance tax variability to broader tax policy and bonding; after debate senators called the question and the clerk reported a roll-call tally (the floor reported 24 ayes, 4 nays, 1 absent) and the bill passed in amended form to be returned to the House for further action.
