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Senate advances constitutional amendment to preserve severance-tax revenue for a state fund

Utah State Senate · February 29, 2012
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Summary

Senators approved a third substitute of House Joint Resolution 6 to create a constitutional fund to preserve severance-tax revenue, with phased transfers beginning in 2016; questions were raised on tribal revenue treatment and how 'annual revenue' is defined.

Senator Hilliard presented the third substitute of House Joint Resolution 6, a constitutional amendment proposal intended to preserve a portion of Utah’s severance-tax revenue by placing it into a constitutional fund. Hilliard argued the state is consuming a nonrenewable revenue source and that a heritage fund — funded gradually beginning in 2016 — would create a long-term savings vehicle similar to those in Wyoming and Colorado.

Supporters described the amendment as a conservative fiscal measure to keep severance-tax…

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