Utah 2025 Regular Session

Utah Senate Bill SB0247 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	02-~~14 10~~:16 S.B. 247
	1	+	02-07 18:40 S.B. 247
2	2		1
3	3		Severance Tax Revenue Amendments
4	4		2025 GENERAL SESSION
5	5		STATE OF UTAH
6	6		Chief Sponsor: David P. Hinkins
7	7		House Sponsor:
8	8		2
9	9
10	10		3
11	11		LONG TITLE
12	12		4
13	13		General Description:
14	14		5
15	15		This bill modifies provisions related to the use of severance tax revenue.
16	16		6
17	17		Highlighted Provisions:
18	18		7
19	19		This bill:
20	20		8
21	21		▸ increases the percentage of severance tax revenue dedicated to the Utah Geological
22	22		9
23	23		Survey Restricted Account.
24	24		10
25	25		Money Appropriated in this Bill:
26	26		11
27	27		None
28	28		12
29	29		Other Special Clauses:
30	30		13
31	31		None
32	32		14
33	33		Utah Code Sections Affected:
34	34		15
35	35		AMENDS:
36	36		16
37	37		51-9-306, as last amended by Laws of Utah 2024, Chapter 25
38	38		17
39	39
40	40		18
41	41		Be it enacted by the Legislature of the state of Utah:
42	42		19
43	43		Section 1. Section 51-9-306 is amended to read:
44	44		20
45	45		51-9-306 . Deposit of certain severance tax revenue for specified state agencies.
46	46		21
47	47		(1) As used in this section:
48	48		22
49	49		(a) "Aggregate annual revenue" means the aggregate annual revenue collected in a fiscal
50	50		23
51	51		year from the taxes imposed under Title 59, Chapter 5, Severance Tax on Oil, Gas,
52	52		24
53	53		and Mining, after subtracting the amounts required to be distributed under Sections
54	54		25
55	55		51-9-305, 59-5-116, and 59-5-119 and under Subsection 59-5-202(5)(c).
56	56		26
57	57		(b) "Aggregate annual mining revenue" means the aggregate annual revenue collected in
58	58		27
59	59		a fiscal year from taxes imposed under Title 59, Chapter 5, Part 2, Mining Severance
60	60		28
61	61		Tax, after subtracting the amounts required to be distributed under Section 51-9-305
62	62		29
63	63		and under Subsection 59-5-202(5)(c).
64	64		30
65	65		(c) "Aggregate annual oil and gas revenue" means the aggregate annual revenue
66		-	S.B. 247 S.B. 247 02-~~14 10~~:16
	66	+	S.B. 247 S.B. 247 02-07 18:40
67	67		31
68	68		collected in a fiscal year from the taxes imposed under Title 59, Chapter 5, Part 1, Oil
69	69		32
70	70		and Gas Severance Tax, after subtracting the amounts required to be distributed
71	71		33
72	72		under Sections 51-9-305, 59-5-116, and 59-5-119.
73	73		34
74	74		(d) "Average aggregate annual revenue" means the three-year rolling average of the
75	75		35
76	76		aggregate annual revenue collected in a fiscal year from the taxes imposed under
77	77		36
78	78		Title 59, Chapter 5, Severance Tax on Oil, Gas, and Mining:
79	79		37
80	80		(i) after subtracting the amounts required to be distributed under Sections 51-9-305,
81	81		38
82	82		59-5-116, and 59-5-119 and under Subsection 59-5-202(5)(c); and
83	83		39
84	84		(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
85	85		40
86	86		required by this section.
87	87		41
88	88		(e) "Average aggregate annual mining revenue" means the three-year rolling average of
89	89		42
90	90		the aggregate annual revenue collected in a fiscal year from the taxes imposed under
91	91		43
92	92		Title 59, Chapter 5, Part 2, Mining Severance Tax:
93	93		44
94	94		(i) after subtracting the amounts required to be distributed under Section 51-9-305
95	95		45
96	96		and under Subsection 59-5-202(5)(c); and
97	97		46
98	98		(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
99	99		47
100	100		required by this section.
101	101		48
102	102		(f) "Average aggregate annual oil and gas revenue" means the three-year rolling average
103	103		49
104	104		of the aggregate annual revenue collected in a fiscal year from the taxes imposed
105	105		50
106	106		under Title 59, Chapter 5, Part 1, Oil and Gas Severance Tax:
107	107		51
108	108		(i) after subtracting the amounts required to be distributed under Sections 51-9-305,
109	109		52
110	110		59-5-116, and 59-5-119; and
111	111		53
112	112		(ii) ending in the fiscal year immediately preceding the fiscal year of a deposit
113	113		54
114	114		required by this section.
115	115		55
116	116		(2) After making the deposits of oil and gas severance tax revenue as required under
117	117		56
118	118		Sections 59-5-116 and 59-5-119 and making the credits under Section 51-9-305, for a
119	119		57
120	120		fiscal year beginning on or after [July 1, 2021] July 1, 2025, the State Tax Commission
121	121		58
122	122		shall annually make the following deposits:
123	123		59
124	124		(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
125	125		60
126	126		Section 19-2a-106, the following average aggregate annual revenue:
127	127		61
128	128		(i) 2.75% of the first $50,000,000 of the average aggregate annual revenue;
129	129		62
130	130		(ii) 1% of the next $50,000,000 of the average aggregate annual revenue; and
131	131		63
132	132		(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000;
133	133		64
134	134		(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
135		-	- 2 - 02-~~14 10~~:16 S.B. 247
	135	+	- 2 - 02-07 18:40 S.B. 247
136	136		65
137	137		Section 19-5-126, the following average aggregate annual revenue:
138	138		66
139	139		(i) .4% of the first $50,000,000 of the average aggregate annual revenue;
140	140		67
141	141		(ii) .15% of the next $50,000,000 of the average aggregate annual revenue; and
142	142		68
143	143		(iii) .08% of the average aggregate annual revenue that exceeds $100,000,000;
144	144		69
145	145		(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
146	146		70
147	147		40-6-23, the following:
148	148		71
149	149		(i)(A) 11.5% of the first $50,000,000 of the average aggregate annual mining
150	150		72
151	151		revenue;
152	152		73
153	153		(B) 3% of the next $50,000,000 of the average aggregate annual mining revenue;
154	154		74
155	155		and
156	156		75
157	157		(C) 1% of the average aggregate annual mining revenue that exceeds
158	158		76
159	159		$100,000,000; and
160	160		77
161	161		(ii)(A) 18% of the first $50,000,000 of the average aggregate annual oil and gas
162	162		78
163	163		revenue;
164	164		79
165	165		(B) 3% of the next $50,000,000 of the average aggregate annual oil and gas
166	166		80
167	167		revenue; and
168	168		81
169	169		(C) 1% of the average aggregate annual oil and gas revenue that exceeds
170	170		82
171	171		$100,000,000; and
172	172		83
173	173		(d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the
174	174		84
175	175		following average aggregate annual revenue:
176	176		85
177		-	(i) [2.5% Ŝ→ 5%~~] 3.5% ←Ŝ~~ of the first $50,000,000 of the average aggregate annual revenue;
	177	+	(i) [2.5%] 5% of the first $50,000,000 of the average aggregate annual revenue;
178	178		86
179	179		(ii) [1%] 1.5% of the next $50,000,000 of the average aggregate annual revenue; and
180	180		87
181	181		(iii) .5% of the average aggregate annual revenue that exceeds $100,000,000.
182	182		88
183	183		(3) If the money collected in a fiscal year from the taxes imposed under Title 59, Chapter 5,
184	184		89
185	185		Severance Tax on Oil, Gas, and Mining, is insufficient to make the deposits required by
186	186		90
187	187		Subsection (2), the State Tax Commission shall deposit money collected in the fiscal
188	188		91
189	189		year as follows:
190	190		92
191	191		(a) to the Division of Air Quality Oil, Gas, and Mining Restricted Account, created in
192	192		93
193	193		Section 19-2a-106, the following revenue:
194	194		94
195	195		(i) 2.75% of the first $50,000,000 of the aggregate annual revenue;
196	196		95
197	197		(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
198	198		96
199	199		(iii) .5% of the aggregate annual revenue that exceeds $100,000,000;
200	200		97
201	201		(b) to the Division of Water Quality Oil, Gas, and Mining Restricted Account, created in
202	202		98
203	203		Section 19-5-126, the following revenue:
204		-	- 3 - S.B. 247 02-~~14 10~~:16
	204	+	- 3 - S.B. 247 02-07 18:40
205	205		99
206	206		(i) .4% of the first $50,000,000 of the aggregate annual revenue;
207	207		100
208	208		(ii) .15% of the next $50,000,000 of the aggregate annual revenue; and
209	209		101
210	210		(iii) .08% of the aggregate annual revenue that exceeds $100,000,000;
211	211		102
212	212		(c) to the Division of Oil, Gas, and Mining Restricted Account, created in Section
213	213		103
214	214		40-6-23, the following:
215	215		104
216	216		(i)(A) 11.5% of the first $50,000,000 of the aggregate annual mining revenue;
217	217		105
218	218		(B) 3% of the next $50,000,000 of the aggregate annual mining revenue; and
219	219		106
220	220		(C) 1% of the aggregate annual mining revenue that exceeds $100,000,000; and
221	221		107
222	222		(ii)(A) 18% of the first $50,000,000 of the aggregate annual oil and gas revenue;
223	223		108
224	224		(B) 3% of the next $50,000,000 of the aggregate annual oil and gas revenue; and
225	225		109
226	226		(C) 1% of the aggregate annual oil and gas revenue that exceeds $100,000,000;
227	227		110
228	228		and
229	229		111
230	230		(d) to the Utah Geological Survey Restricted Account, created in Section 79-3-403, the
231	231		112
232	232		following revenue:
233	233		113
234		-	(i) Ŝ→ [2.5% ] 3.5% ←Ŝ of the first $50,000,000 of the aggregate
235		-	113a
236		-	annual revenue;
	234	+	(i) 2.5% of the first $50,000,000 of the aggregate annual revenue;
237	235		114
238		-	(ii) Ŝ→ [1% ] 1.5% ←Ŝ of the next $50,000,000 of the aggregate
239		-	114a
240		-	annual revenue; and
	236	+	(ii) 1% of the next $50,000,000 of the aggregate annual revenue; and
241	237		115
242	238		(iii) .5% of the aggregate annual revenue that exceeds $100,000,000.
243	239		116
244	240		(4) The severance tax revenues deposited under this section into restricted accounts for the
245	241		117
246	242		state agencies specified in Subsection (2) and appropriated from the restricted accounts
247	243		118
248	244		offset and supplant General Fund appropriations used to pay the costs of programs or
249	245		119
250	246		projects administered by the state agencies that are primarily related to oil, gas, and
251	247		120
252	248		mining.
253	249		121
254	250		Section 2. Effective Date.
255	251		122
256	252		This bill takes effect on May 7, 2025.
257	253		- 4 -