Sunday, September 14, 2008

Amendment 58 Here's an opinion piece in favor of Amendment 58, from The Pueblo Chieftain. From the article: In November, the state's voters will consider another proposal to aid its colleges and universities: Amendment 58, which is led by Gov. Bill Ritter. If passed, the measure would eliminate a tax credit for large oil and gas companies and use 60 percent of the proceeds to create the Colorado Promise Scholarship. The remaining funds would support renewable energy projects, wildlife habitat and water quality and transportation projects in communities where oil and gas producers operate... The tax credit in question was enacted in the late 1970s to foster the state's energy industry. The credit allows energy companies to subtract 87.5 percent - roughly $320 million a year - of their property tax bills from the severance taxes they owe on oil and gas extracted in the state. Amendment 58 supporters say the tax credit is no longer necessary, and the state must make investments to assure a competitive economy and livable environment once the current rush on oil and gas dissipates. The measure also would exempt all of the oil and gas severance tax revenue from TABOR restrictions. The measure was introduced by A Smarter Colorado, whose spokesman, George Merritt, said, "They (Big Oil) just had the most profitable quarter in the history of the world ... Colorado taxpayers don't need to be subsidizing this industry that made $50 billion in the last three months."[...] Coloradans for a Stable Economy, heavily funded by oil and gas, opposes the measure. They are joined by regional organizations Club 20 on the Western Slope, Action 22 in Southern Colorado, and the Denver Metro Club, as well as the Denver Chamber of Commerce. Commissioners in Weld County, home to most of the state's oil and gas wells, also oppose the measure, fearing loss of jobs and revenue. These opponents say eliminating the tax credit would hurt the Colorado economy and increase gas prices. Both the Consumer Federation of America and the Sonoran Institute dispute this claim, saying Colorado produces too little oil to impact the worldwide price. America produces only about 10 percent of the total world oil supply; Colorado accounts for about 0.13 percent. Amendment 58 supporters say even without the subsidy, the oil and gas industry will still pay lower taxes in Colorado than in some neighboring states. Category: Colorado Water 7:04:27 AM

© Copyright 2008 John Orr. Last update: 10/9/08; 7:41:05 PM.