University Daily Kansan, April 3, 1981
Page 3
Severance tax now in limbo
By GENE GEORGE Staff Reporter
A move to revive the governor's proposed severance tax on mineral production will not come, according to the House Majority leader.
But Gov. John Carlin's press secretary hinted yesterday that anyone who believed that statement might be in for a surprise.
State Rep. Robert Frey, R-Liberal,
House major leader, said
Democratic House leaders did not
expect a renewed fight over the tax,
which was killed Wednesday by a
Senate committee.
"There are a lot of people who want to believe that's true," Bill Hoch, the governor's press secretary, responded. "They want to know who doctors who do just as soon as it is away."
THE SENATE ASSESSMENT and Taxation Committee killed the
severance tax, which was expected to raise almost $140 million each year for property tax relief, school finance and highway maintenance.
The tax put a 5 percent surcharge on the production of oil and natural gas, and a 2 percent surcharge on the production of salt, cement and coal.
It was strongly opposed by lawmakers from areas that produced the minerals, and Hoch said many of them signed a sigh of relief" when the tax failed.
"But they are making a serious error, and that will become apparent in the not too distant future," he said.
Hoch said the Legislature would run into snags the rest of the session, when the major budget items would be passed, if there was no severance tax.
realistic option that may still exist," he said.
The governor, however, has not decided what to do about the committee action, Hoch said.
"We are continuing to examine any
SOME LEGISLATORS expected the severance tax to come back in the form of a rider on another bill, but Hutchison could comment on any specific option.
Frey said there were several reasons the severance tax would not come in again in the last days of the 1981 session.
"Once commented upon," he said,
"they take on greater importance than they may have."
The bill was poorly drafted, and there was some question of its constitutionality, he said.
"It's a problem because it would involve a lot of time spent in the late hours of the session on the severance tax because it is difficult to get support for it. I think it would be bad judgment for the governor to decide to do this."
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