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STATE TAXATION OF MINERAL DEPOSITS AND PRODUCTION
Citation:
Stinson, T. STATE TAXATION OF MINERAL DEPOSITS AND PRODUCTION. U.S. Environmental Protection Agency, Washington, D.C., EPA/600/7-77/008 (NTIS PB264575), 1977.
Description:
Development of energy resources in the more rural western states is likely to create severe financial problems for some state and local governments. This new economic activity, with population in-migration and greater demand for public services, will generate a need for more government revenues. Increased use of mineral taxation is one way of financing the new services without increasing the tax burden on the area's existing residents. Four mineral taxes--ad valorem, severance, gross production, and net production--are described and evaluated. Taxes are compared on the basis of ease of administration, social justice, consistency with national economic goals, and revenue adequacy. Some states have enacted special programs designed to ease the front end problem. Programs in Montana, North Dakota, Utah, and Wyoming are discussed but not evaluated.