Senate Bill 21-281 Summary

• Metropolitan districts created on or after July 1, 2021, must annually pay the state an amount equal to ad valorem tax credits claimed, with 50% credited to the state severance tax trust fund and 50% to the local government severance tax fund.

• A multi-agency review group must analyze state severance tax elements including data collection, tax structure, tax expenditures, and industry payments to special districts, submitting recommendations to the Joint Budget Committee by December 15, 2021.

• The severance tax perpetual base fund receives expanded authority to direct transfers to the water supply reserve fund, interbasin compact committee operation fund, and water efficiency grant program, in addition to state water projects.

• If the general assembly appropriates less than 100% of operational fund money for core programs, it may additionally appropriate up to $5 million to the species conservation trust fund, up to $4.006 million to the aquatic nuisance species fund, and up to $450,000 to the conservation district grant fund.

• The state treasurer transfers $9,456,005 from the general fund to the severance tax operational fund on June 30, 2021, and July 1, 2022.