July 29, 2021 |
The Carbon County Commissioners, at their last meeting, gave final approval to a nearly $33.9 million budget. The final piece of the financial puzzle was determining the final number to be used for the estimated value of taxable minerals.
The calculation was made more complicated by state legislation passed earlier this year that allows mineral producers to pay ad valorem taxes monthly instead of once or twice a year. The change required a series of adjustments and revenue projections spread over a 12-year period. The county’s chief budget officer, Clerk Gwynn Bartlett, told commissioners that the changes resulted in $20 million dollar reduction in the assessed value from the original number.
We had questions. We brought them to Clerk Bartlett, who told us that the first year of the change has produced new wrinkles that will smooth out over time. Whether the change in revenue collections will mean more or less money for Carbon County is unknown at this time. Senate File 60 allows mineral producers to pay monthly—smaller amounts spread out over a longer period of time– rather once or twice a year. Ad valorem taxes are paid on on all minerals from sand and gravel to coal oil and gas.
Based on the county’s 12 mill levy, the final assessed value of $588.5 million in the 2022 Budget will produce just over $7 million in revenue. Clerk Bartlett explained to Bigfoot why the transition set in motion by Senate File 60 may produce some growing pains.
Calculating the assessed value for the first year of the transition was tricky. The county deducted one-half of the 2020 assessed value for oil and gas. This deduction is the deferred portion of revenues that will be paid over 12-year period from 2023 to 2025. The complicated number crunching continued from there. So let’s take it from the top.
Again, using the 12 mill levy, the assessed value of $588 million will produce a tax levy of about $7 million in revenues. The $7 million mill levy combined with $4.5 million in estimated available cash, and $22.3 million in estimated revenue totals the $33.8 million in appropriations approved by the county commissioners for the budget.
Change is hard, especially at the beginning. Senate File 60 may prove to be beneficial moving forward, though, because it may eliminate losses or at least the delay in collecting back taxes from companies that experience financial difficulties. Clerk Bartlett said time will tell.
Bartlett added that the county could have secured a state loan to cover the loss seen in this year’s estimated value, but commissioners wanted to avoid being stuck with paying back the loan if a mineral producer went bankrupt in the meantime. The loan option is still on the table, though.
Pictured above: File photo of Carbon County Courthouse. Photo by Cali O’Hare/Bigfoot 99.
