Group: Severance Tax Proposal May Cut Communities' Revenue

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Grand Junction, Colo. (AP) A Western Colorado lobbying group says a ballot proposal on mineral severance tax revenue would divert money from areas most affected by the state's energy boom.

Club 20, which includes business and government leaders, says an analysis shows the proposal could reduce the revenue going to areas where energy development is occurring.

The measure backed by Gov. Bill Ritter would end property-tax deductions the oil and gas industry can take from their severance taxes. Sixty percent of the money would go to college scholarships and the rest to affected communities, wildlife habitat and clean
energy projects.

A spokesman for the campaign behind the measure says Club 20's analysis wasn't a surprise because of the group's ties to the oil and gas industry.