Bill Caption

Relating to allocating a portion of oil and gas production tax revenue to the counties from which the oil and gas originated.

Fiscal Notes

A negative impact to General Revenue Related Funds of ($140,084,000) during the 2020-21 biennium. An impact of $0 through the biennium ending August 31, 2019.

Bill Analysis

Under current law, revenue from the gas and oil production taxes are distributed by sending one-fourth to the credit of the foundation school fund and three-fourths to the to the general revenue fund. HB 4231 would adjust the distribution of these tax revenues by sending one-fourth to the credit of the foundation school fund, two percent to the county in which the taxes were imposed, and the remainder to the general revenue fund. The funds would be distributed to the counties through a trust fund and would only be permitted for use to supplement construction and maintenance of county roads and bridges that are impacted by oil and gas exploration and production activities.

Vote Recommendation Notes

This policy does not appear to have a connection to our principles and we remain neutral, however in our view it does make some sense to allow a portion of the tax revenue to be distributed to the counties where oil and gas is produced since their transportation infrastructure will need to be appropriately maintained to handle the additional wear and tear produced by oil and gas industry activities.