KSJD Local Newscast - August 9, 2024

The Montezuma County commissioners have voted to join several other counties in suing the state of Colorado over its use of the severance-tax fund. On Tuesday, they voted 3 to 0 to pass a resolution authorizing the litigation. Severance taxes are levied upon non-renewable natural resources that are removed, or “severed,” from the earth, such as metallic minerals and oil and gas. The taxes go into funds that provide money to local governments impacted by such mining or drilling, as well as some state programs such as Parks and Wildlife. But in May, the state legislature passed a bill that allows transfers of more than $50 million from two severance-tax funds this year and another transfer of more than $18 million in 2025. Those monies go into Colorado’s general fund to help balance the budget. On Tuesday, Montezuma County attorney Ian MacLaren said the county received about $650,000 from the taxes last year. The lawsuit alleges that what he called the “robbery” of severance-tax funds violates state statutes. The county’s resolution states that the transfers may substantially deplete the severance-tax fund, meaning counties will be deprived of critical revenues. Mesa County is leading the suit and Montrose and Rio Blanco counties have reportedly agreed to join. MacLaren told KSJD he does not think the actual complaint has yet been filed.