HB2081 Severance Tax Distribution
HB2081 - TO CREATE THE HIGHWAY SEVERANCE TAX DISTRIBUTION FUND TO ENSURE THAT THE AFFECTED COUNTIES RECEIVE ADEQUATE FUNDING TO REPAIR HIGHWAYS, ROADS, AND STREETS DAMAGED BY OIL AND GAS PRODUCTION.
Sponsor Representative Josh Johnston Rose Bud, Arkansas
From my understanding of this bill, it would take the 95% severance tax on natural gas that is distributed between all counties, in the state of Arkansas, for roads and just give the money to the few natural gas producing counties.
Plus, I believe the way this bill is written, the severance tax revenues from oil producing counties would not change, which would make the natural gas producing counties double dippers by receiving severance tax money from the oil producing counties.
The natural gas trucks also drive through the counties that don’t produce natural gas, creating wear and tear on those counties roads.
Why would a royalty owner, who lives in a non-producing county want the severance tax monies that are charged on their producing mineral interest in another county, not want part of the severance tax money they pay in to the state to not be use for the roads in the county where they live?
I think the legislators in the non-producing counties should vote no on this bill to be fair handed to the royalty owners living in their counties and to make the tax fair on the royalty owner that pays the tax and to protect their counties roads.
They should also change the code so no severance tax is charged the royalty owner, since the royalty owner already pays an ad valorem tax in the producing county and I believe the companies pay no such tax, but they do receive tax credits
http://www.arkleg.state.ar.us/assembly/2011/2011R/Pages/BillInformation.aspx?measureno=HB2081
http://www.arkleg.state.ar.us/assembly/2011/2011R/Bills/HB2081.pdf
(b)(1) Ninety-five percent (95%) of the severance tax levied and collected on natural gas under § 26-58-111(5) shall be deposited into the State Treasury to the credit of the fund as special revenue for each county in which the funds collected are derived as provided under subsection (c) of this section.
(3) After receiving the information from the Chief Fiscal Officer of the State, the Treasurer of State shall deposit the revenue into the appropriate county's account in the fund on a monthly basis.
