INTERIM STUDY REPORT
General Government and Transportation Subcommittee
Appropriations and Budget Committee
Representative Guy Liebmann, Chairman
Oklahoma House of Representatives
Interim Study, 11-052, Representative Phil Richardson
(Combined with 011-094, Representative Ann Coody)
October 20, 2011
County Roads and Bridges
Representative Phil Richardson
· Oklahoma’s mining industry and its impact on county roads
Ray Vaughn
County Commissioner
Oklahoma County
Oklahoma City, OK
· Association of County Commissioners of Oklahoma Legislative Committee Chair
· Stressed the dire financial condition of Oklahoma counties
· Eighty percent of road use, when compared to the state highway system, is on county roads
· Provided presentation on rock, sand and gravel
o Production volumes
o Taxation structures in other states
o Suggestion to consider a severance tax
Uploaded\11-052 presentation a.pps
Johnston County Commissioners
Tishomingo, OK
· Stressed the high level of mining in Johnston County
o One of the largest in rock and sand materials
· Large amounts of material leaves the county each day and the county receives nothing for the severance of minerals
o By rail
o By truck
· Significant wear on county roads resulting from truck traffic carrying minerals
Uploaded\11-052 presentation c.pdf
Oklahoma Department of Mines
Oklahoma City, OK
Oklahoma Department of Mines - Home
· Highlighted process related to the Operator’s Fee structure already in place
o One cent ($0.01) per ton of mined materials
· Provided statistics on Oklahoma mining volumes of numerous minerals
o By mineral type
o By county
· Illustrated the disposition of Operator’s Fee revenue within the department
· Offered 2009 and 2010 listings of the largest mining permit holders in the state, by olume of mined materials
Uploaded\11-052 presentation b.pps
Jim Rodriguez, Executive Director
Oklahoma Aggregates Association
Oklahoma City, OK
· A 2006 transportation survey of mining companies indicated most production is on or quite near state highways
· Agreements between quarrymen and counties are generally sufficient to allow the mining companies to “pitch in” when road work is needed
o The agreements are usually non-binding, but companies participate because they must have access to mining operations via roads
o The amount of contribution by mining companies varies
· Many time companies will provide aggregate product used to improve roads
· Local governments deriving funds from the application of sales tax is not a viable solution
o Most crushed stone constitutes an input to the production of final products
§ Concrete
§ Other finished products
o As an input, such sales are not subject to sales tax
· An Interstate Mining Compact Commission survey of taxation
o Colorado counties have an option to levy severance taxes
Uploaded\11-052 presentation d.pdf
Attached Document:
Meeting Notice
http://webserver1.lsb.state.ok.us/2011-12HB/A&B%20GenGov%2010-20-11%20mtg.doc
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