Bill > SB0247

This bill modifies how severance tax revenues (taxes collected from the extraction of natural resources like oil, gas, and minerals) are distributed to various state agencies. Specifically, the bill changes the effective date for revenue allocation from July 1, 2021, to July 1, 2025, and adjusts the percentage of tax revenues allocated to different state agency restricted accounts. The most notable changes include increasing the percentage allocated to the Utah Geological Survey Restricted Account from 2.5% to 3.5% for the first $50,000,000 of revenue and from 1% to 1.5% for the next $50,000,000. The bill maintains a tiered allocation system where different percentages are assigned based on the total amount of aggregate annual revenue, with lower percentages applied to higher revenue brackets. These allocated funds are intended to offset and replace General Fund appropriations for state agencies primarily involved in oil, gas, and mining-related programs. The bill will take effect on May 7, 2025, providing a clear timeline for implementing these changes to severance tax revenue distribution.

Budget and Finance

https://le.utah.gov/~2025/bills/static/SB0247.html