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Group opposes energy tax initiative

By Gargi Chakrabarty, Rocky Mountain News (Contact), Todd Hartman, Rocky Mountain News

Published May 13, 2008 at 2:14 p.m.

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A Colorado business group representing the state's top industries has lined up in opposition to a proposal to increase state revenues from oil and gas drilling.

The Colorado Competitive Council, or C3, voted Monday to fight a ballot initiative that calls for eliminating a property tax credit allowing energy companies to significantly cut their state taxes. No other state offers such a benefit to the industry.

The initiative, backed by Gov. Bill Ritter, environmental groups and some education advocates, would raise roughly $200 million a year, with the bulk of the money set aside to help Colorado students pay for college.

C3's position is "not a surprise," according to its lobbyist, Virginia Love, who said the organization has a standing policy against increases in the severance taxes the energy industry pays on minerals taken from the ground.

C3 also has a "general outlook of opposing the state trying to tax a particular industry for certain things — we don't think that's good general tax policy," Love said.

Bill Ray, working for the campaign opposed to the proposal, called C3's opposition "an important hallmark for the entire chamber of commerce and business community," noting that C3 includes local chambers of commerce across the state.

"This vote against the severance tax (proposal) says 'Don't increase taxes on an industry that's so important to our state's economic development and to economic opportunities, especially in the face of a nationwide recession," Ray said.

But advocates for the proposal noted that C3 includes oil and gas companies, and said the group's opposition was not unexpected. Nor is the group's stance an indicator of where the business community at large will come down on the issue, said a spokesman for the campaign favoring the plan.

"This is a group with pretty strong ties to oil and gas, so it's not a surprise to us they would oppose a measure that eliminates a special credit for the oil and gas industry," said George Merritt, spokesman for A Smarter Colorado, the campaign supporting the proposal.

Merritt said the initiative was about helping the economy by educating future workers.

"This is about the future of this state, and helping families keep up with the rising cost of education," he said. "I think the business community will understand and be supportive of that."

It's unclear what C3's opposition means for backers of the initiative who may hope to garner financial support in the campaign from business groups.

Tom Clark, executive director of the Metro Denver Economic Development Corp., said the business community is tied up with warring ballot initiatives between business and labor, and that most of its financial resources will go there.

"Right now, whatever else is on the ballot — whether good or bad — will struggle financially," he said.

hartmant@RockyMountainNews.com or 303-954-5048

Comments

  • May 14, 2008

    4:08 a.m.

    Suggest removal

    windbourne writes:

    While I am a fan of increasing the severance tax (we are one of the lowest in the nation), it is being mis-used. The idea of it was not to help a few kids get a free college ride, but to bring our universities back into being competitive. As the increase stands (based on what I am reading), this does NOTHING to help the universities. Still not sure, but I think I will vote against this, IFF it is really what is being reported.

    I voted for Ritter, as well as Ken Salazar, because I was tired of voting just Libertarian. I thought that both would be better than their opposition. Sadly, I know that Ritter was better, but both are totally worthless (and I regret not voting for Coors). Ritter has done LITTLE that really helps the state. He has brought in minor amounts of green energy. But in each case, they have manufacturing elsewhere. Their headquarters remain elsewhere. I have been writing that CO needs to pursue technology that others are not. Sadly, we have pursued what other states already own. Our best bet would be to spend money on Geo-thermal Electrical Generation. But other western states are now pursuing it. In particular, Nevada, Oregon, and Utah have stated a number of projects that will generate 100's of MW of cheap power. By the time we get into it, the other states will own the ability.

    On a side note, salazar is pushing for telco's immunity WRT spying. That includes allowing them to go scot-free on spying BEFORE 9/11. This spying BY the FBI was not done in response to a terrorists attack, but because somebody with a lot of clout "asked". Lets at least trade immunity for knowledge of what happened, rather than just give it up and walk away from knowing what happened. More importantly, Salazar needs to be held accountable for such actions. The fact that he would vote in favor of such BS means that he needs to explain at the next election.

    If these 2 represent typical leadership by the dems, then America is lost, as it means that we have 1 party that is corrupt and incompetent, and the other that is incompetent and corrupt.

  • May 14, 2008

    9:10 a.m.

    Suggest removal

    bobbyb writes:

    Actually we DO NOT have one of the highest severance taxes in the nation. But WE DO have one of the toughest regulatory environments in the nation. With unreasonable regulation and higher taxes, how much money does Gov Ritter and the rest of the clowns in the state capitol think they'll actually get from the natural gas companies?

  • May 14, 2008

    11:01 a.m.

    Suggest removal

    jacka writes:

    Finally the Denver EDC and Chamber are standing up for their members and their members values. Continuing to drive the good ship USS Compromise just because the Democrats won't take a stand and deliver as they promised is wrong.

    Vote YES on amendment 47
    --- shouldn't all Coloradans have the right to choose?
    --- shouldn't all COloradans have the right to protect their paycheck?

    Vote NO on all measures back by BIG UNIONS
    --- didn't unions get enough when their Governor handed them the keys to state employees?
    --- the unions conspire to sell Labor Peace, this is corrupt.
    --- avoid the BIG UNION strategy traps that seek to remove your right to choose.

    Vote NO on forced gas tax increases
    --- shouldn't all Coloradans have input on balancing the needs for transportation and higher education investments?
    --- why should Denver centric values trump the needs of the Western Slope, NE Colorado and Southern Colorado?
    --- why should you accept higher gas taxes when the Democrats failed to do their job at the capitol?
    --- why should you accept higher gas taxes when the Democrats pushed through 9-10% increases at CU, CSU and community colleges?