Senate passes severance-tax trust measure after failed floor amendment to increase diverted funds

The Senate approved second substitute Senate Bill 18 and referred it to the House after lengthy floor debate over how much severance-tax revenue should be diverted into a permanent trust.

Senator Stevenson offered an amendment to lower the oil-and-gas and mining base amounts (mining base from $9,000,000 to $5,000,000; oil-and-gas base from $41,000,000 to $20,000,000) so a larger share of revenues would flow into the trust. He argued the change is needed to preserve nonrenewable-resource value for future generations, saying that without a meaningful diversion “we have basically stolen from future generations.” He described the proposal as a way to create a permanent fund whose interest could support infrastructure and economic diversification.

Senator Hilliard and other opponents warned the amendment would increase the bill’s fiscal note and could jeopardize support; they noted competing funding requests (for basin infrastructure and other legislative priorities). Floor discussion also referenced current severance-tax receipts (the sponsor cited figures of about $72,000,000 from oil and gas and $17,000,000 from metals) and the likely fiscal impact. The amendment failed on a roll call (7 yes, 18 no, 4 absent). A floor exchange updated the fiscal-note estimate should the amendment pass: roughly $25,000,000 more would have been set aside this year, moving the fiscal impact from about $39,000,000 to approximately $64,000,000 removed from available spending this cycle.

On final passage the Senate recorded 23 yes votes and 2 no votes with 4 absent and sent the bill to the House for further action. Supporters said the statutory trust is intended to create long-term savings for Utah from nonrenewable severance-tax receipts; opponents emphasized budget discipline and potential near-term funding shortfalls from diverting revenue.