Senate Bill 16-218: State Severance Tax Refunds

• Creates a reserve fund for severance tax refunds, with the State Treasurer setting aside revenue before allocation to ensure refunds can be paid under Section 39-21-108.

• Requires the State Treasurer to credit funds to the reserve from Article 22 tax proceeds equal to any deficit in refunds required prior to July 1, 2016, and thereafter credit amounts exceeding 15% of monthly gross severance tax revenues.

• Restricts $19.1 million in the severance tax perpetual base fund, $10 million in the severance tax operational fund, and $48.3 million in the local government severance tax fund from use until released by Joint Budget Committee majority vote.

• Adjusts the fiscal year 2015-16 general fund reserve requirement to subtract amounts credited to the severance tax refund reserve, preventing double-counting.

• Changes the repeal date of allocation of severance tax revenues provisions from January 1, 2017 to July 1, 2017.