SB 25-040: Future of Severance Taxes & Water Funding Task Force

Official summary

Abstract published by the legislature (via Open States). Text as published by the legislature; reproduced verbatim.

The act creates the future of severance taxes and water funding task force (task force). The department of natural resources is required to contract with a third party to conduct a study on severance taxes and water funding and develop recommendations for ways to continue funding water needs and energy impact grants in the face of decreasing severance tax revenue (study). The study must focus on identifying ways to alleviate the need to transfer revenues derived from severance taxes to the general fund and to replace severance tax revenue that was previously transferred to the general fund. The purpose of the task force is to work with the third party to conduct the study and develop recommendations. No later than January 15, 2026, the third party must submit a draft report, detailing the results of the study and any recommendations, to the department of natural resources and the task force for review. The task force is required to provide input on the draft report. No later than July 15, 2026, the third party must submit a final report, which incorporates the input of the task force, to the water resources and agriculture review committee (committee). The task force must present the final report to the committee during the 2026 legislative interim. The act changes the manner in which a credit allowed against severance tax in taxable years commencing January 1, 2026, but prior to January 1, 2028, is calculated. For the 2025-26 state fiscal year, $198,592 is appropriated from the severance tax operational fund to the department of natural resources to implement the act. (Note: This summary applies to this bill as enacted.)

Sponsors

Sponsors by party (alphabetical): Democratic 24 · Republican 8

“Support” is shown only as formal sponsorship recorded by the legislature. Roll-call votes are available on the official bill page.

Recent official actions

1. May 15, 2025Governor Signed
2. May 12, 2025Signed by the President of the Senate
3. May 12, 2025Sent to the Governor
4. May 12, 2025Signed by the Speaker of the House
5. May 5, 2025Senate Considered House Amendments - Result was to Concur - Repass
6. May 2, 2025House Third Reading Passed - No Amendments
7. May 1, 2025House Committee on Appropriations Refer Unamended to House Committee of the Whole
8. May 1, 2025House Second Reading Special Order - Passed with Amendments - Floor
9. April 21, 2025House Committee on Agriculture, Water & Natural Resources Refer Unamended to Appropriations
10. April 15, 2025Senate Third Reading Passed - No Amendments
11. April 15, 2025Introduced In House - Assigned to Agriculture, Water & Natural Resources
12. April 14, 2025Senate Second Reading Special Order - Passed with Amendments - Committee, Floor

Showing 12 most recent of 15 actions. Full history