"Utah created the Permanent State Trust Fund to receive revenue from the Tobacco Master Settlement Agreement. Since 2008 it has also received limited severance tax revenue.
Mining, oil and gas companies pay severance taxes (when they "sever" oil, gas and minerals from the earth) in addition to property, income and sales taxes that other Utah businesses and individuals pay. By definition, severance taxes can’t last forever. There is only so much oil, gas, copper, molybdenum, etc., in the ground. When those resources are gone, severance taxes will also be gone.
Before 2008, the Legislature spent all severance taxes for ongoing programs. Fortunately, an overwhelming majority of Utah voters amended Utah’s Constitution in 2008, thereby allowing, but not requiring, the Legislature to save severance tax revenues in Utah’s Permanent Trust Fund. However, less than two years later the Legislature stopped investing severance tax revenue in the Permanent Trust Fund and instead went back to spending it all each year."
Rep. Jim Nielson, R-Bountiful, represents District 19 in the Utah House of Representatives; Sen. Lyle Hillyard, R-Logan, represents District 25 in the Utah Senate; and Sen. Ben McAdams, D-Salt Lake City, represents District 2 in the Senate.
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