HB 1440 Summary

• Increases petroleum severance tax rates effective January 1, 2012 to the greater of 2% of petroleum value or specific per-unit rates: $0.06 per 1,000 cubic feet for natural gas (non-coal bed methane), $0.25 per 1,000 cubic feet for coal bed methane, and $0.48 per barrel for oil.

• Imposes new coal and aggregate severance tax at 4.5% of gross value with minimum tax of $0.50 per ton (excluding processors of coal only); coal used for burning solid waste taxed at lesser of $0.50 per ton or 4% of selling price.

• Requires persons severing or processing coal and persons extracting aggregate to obtain registration certificates from the Department of State Revenue and file monthly tax returns by the 20th of following month.

• Distributes tax revenue as follows: 50% to state general fund, 40% to counties and municipalities based on location and population (for road and street purposes only), and 10% to new parks and recreation grant fund.

• Establishes seven-member parks and recreation grant board (including governor and legislative appointees) to award grants up to 50% of project costs for parks and recreation development throughout Indiana.