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Utah votes to save some oil & gas taxes

sfgate.com (AP) -- A ballot recount Monday confirmed that Utah voters narrowly agreed to put about $36 million of oil and gas riches into a permanent fund for safekeeping.

..The constitutional amendment requiring Utah to set aside a portion of its tax on oil, gas and mining was another election night cliffhanger. With more than 79,000 absentee and provisional ballots added to the mix Monday, the canvassing board confirmed it was a winner by barely 1 percentage point.

The measure forces elected officials to divert a portion of the severance tax into a permanent fund already fortified with tobacco settlement money.

That fund contains $123 million the state treasurer's office said Monday.

States such as New Mexico, North Dakota and Wyoming do the same — and have saved billions of dollars for a rainy


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Submitted Nov 27, 2012 By: teafortwo
Category: Daily News Article Discussions > Topics Add to favorite topics  
Author Topic: Utah votes to save some oil & gas taxes Back to Topics
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honda0105
Champion Author Tallahassee

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Message Posted: Nov 30, 2012 5:56:34 AM

DanM: I think, sadly, that describe the IQ of many politicians ...
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geminijax
Champion Author Jacksonville

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Message Posted: Nov 29, 2012 10:31:08 PM

LOL DanMtz. CA legislators are far more likely to pass laws that forbid such common sense actions.
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teenitup
Champion Author Houston

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Message Posted: Nov 29, 2012 9:43:22 PM

So much money comes into the local, state and federal coffers thru taxes on oil and gas. Good for the folks in Utah for at least keeping some of it safeguarded from reckless government spending.

Anyone ever wonder why renewables do not produce any taxes for the government?
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MAC48
Champion Author Dallas

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Message Posted: Nov 28, 2012 11:35:40 AM

One has to commend the voters of Utah for passing such a common sense amendment to their state constitution since the legislature has proven that it, as is the case in most states, is incapable of setting aside funds to spend when things are truly financially catastrophic from a state revenue stream perspective. Legislators and bureaucrats can and will always find projects or causes that require initial or increased funding to equal and often exceed all incoming state revenue but the question has to be asked are all of the perceived expenditures really necessary.

Only the foolish state governments spend their entire current revenue stream plus incur debt to meet today’s spending objectives.
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DanMtz
Champion Author Oakland

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Message Posted: Nov 28, 2012 9:56:22 AM

If California legislators were to read this story, they'd be dumbfounded.
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jethro5000
Champion Author Kentucky

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Message Posted: Nov 28, 2012 6:52:34 AM

--
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jrs4125
Champion Author Indiana

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Message Posted: Nov 28, 2012 12:37:01 AM

Good thing to do.
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BuckyTJones
Champion Author Salt Lake City

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Message Posted: Nov 27, 2012 9:26:48 PM


Lead by example.
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PDQBlues
Champion Author San Diego

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Message Posted: Nov 27, 2012 6:45:08 PM


"The more tax revenue Utah collects, the more the constitutional amendment requires it to save."

California could benefit greatly from this kind of legislation.
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NHLiveFree
Champion Author New Hampshire

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Message Posted: Nov 27, 2012 6:03:00 PM

Appears to be an extremely tough piggy bank to ever crack open. Why the need for a state constitutional amendment on this?

"... "I like to think of it not as a rainy day fund but a hurricane fund for much more serious things," he said. It would take a three-quarter vote of the Utah House and Senate and the governor's signature to crack open the permanent fund for any purpose.

The more tax revenue Utah collects, the more the constitutional amendment requires it to save.

Utah takes in about $91 million on oil, gas and mineral development.

At that rate, Utah will set aside about $36 million a year for the permanent fund.

The new measure takes effect in 2016 — but Nielson hopes to get legislators to act sooner and voluntarily save some of the oil taxes. That's already allowed by a 2008 constitutional amendment that Nielson says hasn't worked out well, because elected officials made only one deposit and ignored it every other year.

Nielson argues it's a good time to ramp up savings with the recession fading and tax revenues growing in Utah. Gov. Gary Herbert recently announced Utah would have $421 million more to spend than anticipated for the next budget year, which starts July 1.

House Minority Leader David Litvack led opposition to the forced savings plan. He said Utah has other rainy day funds that grow by tens of millions of dollars in times of budget surpluses and have never dipped below $209 million."
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GatorGuy
Champion Author Columbia

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Message Posted: Nov 27, 2012 4:53:35 PM

Stateside reserves? Hmmmm...
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BigKart
Champion Author Indianapolis

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Message Posted: Nov 27, 2012 12:00:53 PM

There's a novel idea. Spend less than you get. BO and Congress: are you listening? Reading Gas Buddy?
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zimowski
Champion Author San Jose

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Message Posted: Nov 27, 2012 11:36:07 AM

The Democrats in California don't know how to save for a rainy day.
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Mariuxus
Champion Author Chicago

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Message Posted: Nov 27, 2012 11:01:27 AM

ok...we'll see...
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Catfish93001
Champion Author Ventura

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Message Posted: Nov 27, 2012 10:22:09 AM

Maybe they're just saving up for a really big party.
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itzagasgasgas1
Champion Author Cincinnati

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Message Posted: Nov 27, 2012 10:01:53 AM

Good to have money for a rainy day.
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BillHeatherL
Champion Author Alberta

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Message Posted: Nov 27, 2012 9:57:00 AM

hope it gets used for the right reasons
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99church
Champion Author Indiana

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Message Posted: Nov 27, 2012 9:51:34 AM

ditto w4kh
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w4kh
Champion Author Tennessee

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Message Posted: Nov 27, 2012 9:50:09 AM

Since the amendment requires a 3/4 majority vote in both the house and senate as well as the governor signing off, it is not likely that these rainy day funds will be squandered on something trivial.
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Rick01
Champion Author Utah

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Message Posted: Nov 27, 2012 9:44:23 AM

To bad the State Legislature has the control and will spend it to line their own pockets as usual here.
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CarpenterNJ
Champion Author New Jersey

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Message Posted: Nov 27, 2012 9:44:13 AM

There's a plan...
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twinfanMN
Champion Author Minnesota

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Message Posted: Nov 27, 2012 9:43:54 AM

A rainy day fund? What a great idea. I hope they have honest accuntants to eliminate these funds from going into a campaign fund or some politicians bank account.
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2008JeepX
Sophomore Author Newfoundland

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Message Posted: Nov 27, 2012 9:42:50 AM

Someone is thinking
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gasmeup52
Champion Author Missouri

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Message Posted: Nov 27, 2012 9:41:50 AM

Good idea.
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ModelWarships
Champion Author Missouri

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Message Posted: Nov 27, 2012 9:40:41 AM

are you kidding? Spend spend spend, borrow and spend spend some more. Works for 0bama.
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Kato51
Champion Author Atlanta

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Message Posted: Nov 27, 2012 9:40:07 AM

Good to see someone finally using their head. Yea Utah!
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HoosierDaddyKY
Champion Author Kentucky

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Message Posted: Nov 27, 2012 9:40:07 AM

Well, at least somebody seems to be half way responsible!
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TC5504
Champion Author West Virginia

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Message Posted: Nov 27, 2012 9:38:52 AM

Better to save than waste.
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Zonk
Champion Author Michigan

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Message Posted: Nov 27, 2012 9:38:15 AM

The little piggy bank may come in handy one of these days.
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BeaconLite
Champion Author Ottawa

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Message Posted: Nov 27, 2012 9:37:56 AM

They need to have a backup plan, otherwise they are in deep trouble.
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7SPEEDY7
Champion Author Flint

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Message Posted: Nov 27, 2012 9:37:42 AM

Genius!
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mickealo
Champion Author Spokane

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Message Posted: Nov 27, 2012 9:37:32 AM

better be watched or someone will be using it without them knowing it
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deputydog082
Champion Author Detroit

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Message Posted: Nov 27, 2012 9:37:01 AM

sounds responsible! federal government take note!!
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CharlieC08
Champion Author Colorado

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Message Posted: Nov 27, 2012 9:36:47 AM

Smart!
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ManOfLeisureII
Champion Author Philadelphia

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Message Posted: Nov 27, 2012 9:35:24 AM

The rest of the states should take notice.
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krobp46
Champion Author Milwaukee

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Message Posted: Nov 27, 2012 9:35:07 AM

That's something we'll N E V E R see from our Federal Government
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pastorpaulcg
Champion Author Virginia

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Message Posted: Nov 27, 2012 9:35:05 AM

In a lockbox? That only works if someone else has the key.
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mswillia
Champion Author Milwaukee

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Message Posted: Nov 27, 2012 9:34:13 AM

As long as the savings is for something rather than the next administrations pork
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vcsuksu21
Champion Author Oklahoma City

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Message Posted: Nov 27, 2012 9:33:11 AM

@cucamongacurtis I agree but that state has already spend the next 100+ years of saving from the rainy day fund.
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GManCo
Champion Author Colorado Springs

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Message Posted: Nov 27, 2012 9:33:11 AM

A smart move!!
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CapriceWagon
Champion Author Washington

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Message Posted: Nov 27, 2012 9:32:30 AM

Saving money? what an old fashioned idea, I thought it's more fun to borrow $16 trillion to buy votes with entitlements
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Tiernan2012
Champion Author Sacramento

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Message Posted: Nov 27, 2012 9:31:50 AM

Safekeeping salaries for future politicians?
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TXGasPriceSpy
Champion Author Fort Worth

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Message Posted: Nov 27, 2012 9:31:15 AM

Save when you can.
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Asbury09
Champion Author Iowa

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Message Posted: Nov 27, 2012 9:30:58 AM

permanent only until some politician wakes up
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dm9667_23
Champion Author Pennsylvania

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Message Posted: Nov 27, 2012 9:30:40 AM

nice idea
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cucamongacurtis
Champion Author San Bernardino

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Message Posted: Nov 27, 2012 9:30:26 AM

California should look at something like this. Oh, wait . . . Democrat supermajority in the state legislature . . . never mind . . .
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Hangnail309
Champion Author Manitoba

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Message Posted: Nov 27, 2012 9:30:20 AM

sounds like a rainy day fund and in these times, maybe this is a good idea ...
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NemoIL
Champion Author Illinois

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Message Posted: Nov 27, 2012 9:30:17 AM

It will be "permanent" until the tax and spend liberals get their hands on it.
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PTBpricer
Champion Author Virginia

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Message Posted: Nov 27, 2012 9:30:00 AM

Good for them.
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mitchells
Champion Author Montreal

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Message Posted: Nov 27, 2012 9:29:58 AM

Wow, people actually thinking and acting responsibly and thinking about the future, and not just lining their pockets today? What has this world come to?!!
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