Severance tax distribution.

WORKING DRAFT
2005
STATE OF WYOMING
05LSO-0098.E1

HOUSE BILL
NO.
HB0005

Severance tax distribution.

Sponsored by:
Joint Revenue Interim Committee

A BILL

for

AN ACT relating to taxation and revenue; providing for distribution of certain severance taxes as specified; and providing for an effective date.

Be It Enacted by the Legislature of the State of Wyoming:

Section 1.

W.S. 9
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2
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1014.1(b), 39
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14
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211(e)(intro) and 39
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14
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801(b), (c) and by creating a new subsection (e) are amended to read:

9
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2
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1014.1.

State budget; requests by recipients of certain earmarked funds for additional funding from the budget reserve account.

(b)

The total amount available for the purpose of this section shall be the estimated deposits into the budget reserve account for the next biennial budget period under W.S. 9
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4
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601(d)(iv) and 39
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14
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801(c)(ii)
and (e)(ii)
.

39
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14
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211.

Distribution.

(e)

Revenues to be distributed to local governments under W.S.
39
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14
‑
801
39
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14
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801(d)
shall be distributed as follows:

39
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14
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801.

Severance tax distributions; distribution account created; formula.

(b)

[LUST] Before making distributions from the severance tax distribution account under subsections (c)
,

and
(d)
and (e)
of this section, an amount equal to the amount of tax collected under W.S. 39
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17
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104(a)(iii) and 39
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17
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204(a)(ii) for the same period shall be distributed to the corrective action account created by W.S. 35
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11
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1424 and to the financial responsibility account created by W.S. 35
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1427 in an inverse proportion to the amount in the two (2) accounts.

(c)

After making distributions under subsection (b) of this section, distributions under subsection (d) of this section shall be made from the severance tax distribution account. The amount of distributions under subsection (d) of this section shall not exceed one hundred fifty
‑
five million dollars ($155,000,000.00) in any fiscal year. To the extent that distributions under subsection (d) of this section would exceed
that amount
one hundred fifty-five million dollars ($155,000,000.00) but be less than or equal to four hundred fifty-five million dollars ($455,000,000.00)
in any fiscal year, the excess shall be
credited
distributed
:

(i)

One-third (1/3)
Twenty-three percent (23%)

to the general fund;
and

(ii)

Two-thirds (2/3)
Forty-six percent (46%)
to the budget reserve account
;
.

(iii)

Four percent (4%) to the road construction funds of the various counties as provided by W.S. 24
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2
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110 to be distributed in the same proportion as provided by paragraph (d)(vii) of this section;

(iv)

One percent (1%) to the state loan and investment board for the purpose of addressing mineral development impact assistance;

(v)

Ten percent (10%) to cities and towns, to be distributed as follows:

(A)

Communities with a population of fifty (50) persons or less – ten thousand dollars ($10,000.00) each;

(B)

Communities with a population of fifty-one (51) persons up to one hundred (100) persons – thirty thousand dollars ($30,000.00) each;

(C)

Communities with a population of more than one hundred (100) persons – fifty thousand dollars ($50,000.00) each;

(D)

Any remainder shall be distributed in the same manner as provided by paragraph (d)(viii) of this section; and

(vi)

Eight percent (8%) to counties, to be distributed as follows:

(A)

Fifteen percent (15%) shall be distributed evenly to each of the twenty-three (23) counties;

(B)

Eighty-five percent (85%) shall be distributed in the same manner as provided by paragraph (d)(vi) of this section.

(vii)

Four percent (4%) to the highway fund;

(viii)

Four percent (4%) to water development account III only if the legislation to create the account is enacted by the legislature during the 2005 general session. If the account is not created during the 2005 general session, then to water development account I under W.S. 41
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2
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124(a)(i).

(e)

To the extent that the amount of distributions under subsections (c) and (d) of this section would exceed four hundred fifty-five million dollars ($455,000,000.00) in any fiscal year, the excess shall be credited:

(i)

One-third (1/3) to the general fund; and

(ii)

Two-thirds (2/3) to the budget reserve account.

Section 2.

(a)

For the 2006 fiscal year the amounts which would otherwise be distributed under W.S. 39
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14
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801(c) shall be reduced as follows:

(i)

The distributions under W.S. 39
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14
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801(c)(iii) to the road construction funds of the various counties shall be reduced by five million dollars ($5,000,000.00);

(ii)

The distributions under W.S. 39
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801(c)(v) to the cities and towns shall be reduced by twelve million three hundred seventy-five thousand dollars ($12,375,000.00);

(iii)

The distributions under W.S. 39
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801(c)(vi) to counties shall be reduced by ten million one hundred twenty-five thousand dollars ($10,125,000.00).

(b)

All amounts which are not distributed under W.S. 39
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801(c) as a result of this section shall be deposited by the state treasurer to the general fund. The applicable reduction required by this section and the corresponding deposit to the general fund shall be made in full before any distribution is made pursuant W.S. 39
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801(c)(iii), (v) or (vi).

Section 3.

This act is effective July 1, 2005.

(END)

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HB0005