Role, Size of Energy Taxes Differs Across Western U.S.

Posted April 14, 2014 at 9:12am

The Denver Post reports that “the Colorado shale oil boom is adding billions of dollars to oil company balance sheets and millions to the coffers in counties where drilling takes place — but it hasn’t amounted to much for the rest of the state.”  

“While thousands of wells are being drilled in the Niobrara shale formation — mainly in Weld County — none is likely to pay state tax after three years, according to one economic analysis.”  

“Those tax payments are being reduced by tax credits equal to $208 million a year, according to a Colorado Legislative Council staff analysis.”  

The piece continues: “The size and role of energy taxes varies across the West, with Colorado having one of the lowest rates. Some states have raised more and turned it into a statewide benefit.”  

“Wyoming collects about $1 billion a year and uses the money to fund highway and water projects and to provide grants to all cities and towns based on population.”  

“A portion goes to a trust fund, now valued at $6.2 billion, whose interest, dividends and capital gains go to the Wyoming general fund.”  

“Montana is using oil and gas taxes for statewide property tax relief.”