Groups unite to support tax measure

Gargi Chakrabarty

Wednesday, March 26, 2008

Interest groups on Tuesday agreed to join forces to push a single energy tax measure, a move billed as a way to pump more money into higher education and other causes.

The proposed ballot measure calls for eliminating a rule that allows oil and gas producers to apply a large property tax deduction to their severance tax bill - a benefit allowed in no other state.

But the severance tax rate would remain unchanged at 5 percent. If approved by Colorado voters in November, the measure would raise roughly $200 million a year, supporters say.

Several groups and individuals had floated various ideas on how the state could cash in on the energy boom. A chunk of the additional revenue - 60 percent - would be channeled into higher education. Of the remaining, 15 percent would be invested in renewable energy, 15 percent in wildlife habitat and 10 percent to help communities impacted by drilling.

The energy industry said it would oppose an increase in the severance tax. And it's against any effort to eliminate the property tax credit.

chakrabartyg@RockyMountainNews.com or 303-954-2976