Showing posts with label wind power taxation. Show all posts
Showing posts with label wind power taxation. Show all posts

Wednesday, February 9, 2011

Future wind projects will pay sales tax

House drives stake through wind taxation bill

A reconsideration vote Wednesday failed to revive HB 191 – Wind power taxation.

The House killed the bill on a tie vote on third reading Tuesday, 29-29. An effort to revive it found a definite majority in opposition when the bill was again killed 27-32.

Opponents again argued the legislation would not provide local governments with the money they need to deal with the social and infrastructure impacts of big wind farm projects.

The ESPC supported defeating the measure, which essentially put the state in the position of financing sales tax for new wind projects (existing projects enjoyed a sales tax exemption). Without HB 191, the law passed by the 2010 Legislature will stay in effect, which imposes a $1/megawatt-hour excise tax three years after the turbine begins generating electricity. Moreover, the sales tax exemption will expire, and the sales tax revenues will help local governments deal with the impacts of wind projects.

Here’s the vote on reconsideration of HB 191 – Wind power taxation:

Ayes: Representative(s) Berger, Blake, Bonner, Buchanan, Burkhart, Byrd, Childers, Eklund, Freeman, Greear, Harvey, Illoway, Kasperik, Krone, Lockhart, Loucks, Lubnau, Nicholas B, Patton, Pederson, Petroff, Stubson, Teeters, Throne, Vranish, Wallis and Zwonitzer, Dn..

Nays: Representative(s) Barbuto, Blikre, Botten, Brechtel, Brown, Campbell, Cannady, Connolly, Craft, Davison, Edmonds, Esquibel, K., Gay, Gingery, Goggles, Greene, Harshman, Hunt, Jaggi, Kroeker, Madden, McKim, McOmie, Miller, Moniz, Peasley, Petersen, Quarberg, Roscoe, Semlek, Steward and Zwonitzer, Dv..
Excused: Representative(s) Shepperson
Ayes 27 Nays 32 Excused 1 Absent 0 Conflicts 0

Campaign finance - changes to disclosure of independent disclosures

SF 3- Campaign finance – organizations cleared the House Committee of the Whole with a new amendment from Rep. John Patton (R-HD29, Sheridan). The House Corporations committee stripped a Senate amendment requiring independent expenditure campaigns to list the names of their top three contributors in print ads and to speak those names in broadcast ads.

The committee instead adopted a disclosure amendment requiring reporting of contributors, similar to the reporting now required of candidate committees and PACs. The bill will be on second reading Thursday.

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Tuesday, February 8, 2011

Equality in the Equality State

Opponents fear gay marriage amendment will produce “ugly” media campaign in 2012 elections

With notes on campaign spending and taxing wind

The campaigning around a proposed state constitutional amendment to bar same-sex marriage in Wyoming will be a media circus that will put intolerable pressure on the state’s gay residents and harm the state’s economy, opponents of the amendment said Tuesday.

The House Judiciary Committee took testimony for about an hour Tuesday morning on SJ 5: Defense of marriage – constitutional amendment, then approved sending it to the House floor on a 6-3 vote.

Gov. Matt Mead joined the debate as well when his legislative liaison, Chris Boswell, presented a proposed amendment to the House Judiciary Committee that would involve placing two amendment propositions on the 2012 ballot. However, Boswell brought only a few copies of the proposal and these were distributed to the committee members, so we all are still in the dark about the exact wording.

Committee Chairman Kermit Brown (R-HD14, Laramie) told Boswell the Governor’s amendment should be brought on the House floor.

Proponents again argued that proposal “simply allows people to vote” on their idea that Wyoming must protect the exclusivity of marriage to one man and one woman. They contend the measure is necessary because gay marriage somehow threatens heterosexual marriage, which serves as a pillar of society, furthers procreation, and provides the optimal environment for children with both the father and mother present.

Proponents discounted assertions that the amendment takes away rights, saying that gay couples can seek other legal solutions to achieve the same protections that marriages provide. That more difficult process is fair, they contend, because homosexuality is a lifestyle choice, not an inherent part of a person’s makeup.

Opponents refuted those arguments and warned that the campaigns to urge votes for and against the amendment will flood the 2012 election with demonizations of homosexuals and others who don’t fit into society’s favored gender roles.

Laramie attorney John D. Rawls predicted that if placed on the ballot in 2012, “there will be convulsions across Wyoming” prompted by campaign advertising placed by people who do not understand the traditional “live and let live” culture of the state, and instead stirs fear and loathing among neighbors.

Joe Corrigan, president of Wyoming Equality, a nonprofit that advocates for gay and lesbian rights, predicted the amendment campaign would deteriorate to the level of what were described as “vile” email messages sent to legislators, reviling some legislators for voting to support equality this session.

Some gay and lesbian people will not be able to withstand the pressure of such a campaign and will not survive it, he said. Instead, he urged legislators to assure the equality of gays and lesbians. “I believe there is room at the table for all of us,” he said.

Rep. Mary Throne (D-HD11, Cheyenne) said she has three young sons, all who would be in their teens in 2012. She said she does not wish to see them subjected to campaign that will spread an ugly tone across the state. “That’s not good for my boys,” she said.

Throne said a 2012 campaign season focused on a gay marriage amendment could harm the state’s economy. Tourists coming to the state would encounter billboards urging them to ‘Stand up against hate’ or to ‘Support family values’ or they would see other messages, none of which would tend to promote the state and the resources that attract tourists.

Rep. Joe Barbuto (D-HD48, Rock Springs) voted against the resolution, asking, “Do we need something in our Constitution that has so much negative effect on one small part of the population?”

The third vote against the proposed amendment was cast by Rep. Matt Greene (R-HD45, Laramie) who said he sees no need for it since state statutes already declare that marriage is between a man and a woman.

Chairman Brown, citing a desire to see the measure debated on the House floor, voted for it, along with Reps. Brechtold, Cannaday, Krone, B. Nicholas and Peasley.

SF 3 – Unlimited corporate spending

As we’ve described in earlier blogs, the Citizens United v. FEC case decided in January 2010 potentially changes the face of Wyoming elections by allowing unlimited independent expenditures directly from corporate treasuries. Check out the Citizens United page on our website for detailed background information.

Wyoming law currently allows only candidates, candidate committees, political parties, and political action committees (PACs) to spend money opposing or supporting candidates or ballot measures. SF 3 changes this law to comply with Citizens United.

The ESPC respectfully disagrees with the Court’s decision holding that previous campaign finance laws restricted corporate free speech. Nonetheless, the court decision is the law of the land, so the ESPC has argued that SF 3 should include effective disclosure requirements so that Wyoming voters can identify the sources of independent expenditures.
The House Corporations, Elections and Political Subdivisions Committee today stripped a Senate amendment requiring independent expenditure campaigns to list the names of their top three contributors in print ads and to speak those names in broadcast ads.

The committee instead unanimously adopted a disclosure amendment requiring reporting of contributors, similar to the reporting now required of candidate committees and PACs.

HB 191 – Taxing Wyoming wind


The House on today killed HB 191 – Wind power taxation on third reading, 29-29. Opponents argued the legislation would not provide local governments with the money they need to deal with the social and infrastructure impacts of big wind farm projects.

The ESPC supported defeating the measure, which essentially put the state in the position of financing sales tax for new wind projects (existing projects enjoyed a sales tax exemption). Without HB 191, the law passed by the 2010 Legislature will stay in effect, which imposes a $1/megawatt-hour excise tax three years after the turbine begins generating electricity. Moreover, the sales tax exemption will expire, and the sales tax revenues will help local governments deal with the impacts of wind projects.

At the end of business today, however, a request for reconsideration of the vote was announced, and this will be held tomorrow. It will be interesting to see if someone changes their vote - or if one of the excused legislators returns to change the House decision. Here's the vote:

Ayes: Representative(s) Berger, Blake, Blikre, Bonner, Buchanan, Burkhart, Byrd, Childers, Craft, Eklund, Freeman, Gay, Greear, Harvey, Hunt, Illoway, Kasperik, Krone, Lockhart, Loucks, Lubnau, Nicholas B, Patton, Peasley, Petroff, Stubson, Throne, Vranish and Zwonitzer, Dn..

Nays: Representative(s) Barbuto, Botten, Brechtel, Brown, Campbell, Cannady, Connolly, Davison, Edmonds, Esquibel, K., Gingery, Goggles, Greene, Harshman, Jaggi, Kroeker, Madden, McKim, McOmie, Miller, Moniz, Petersen, Quarberg, Roscoe, Semlek, Steward, Teeters, Wallis and Zwonitzer, Dv..

Excused: Representative(s) Pederson and Shepperson.

Ayes 29 Nays 29 Excused 2 Absent 0 Conflicts 0

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Citizens can register their opinions on specific legislation by using the “Online Hotline” or the telephone Hotline – 1-866-966-8683 or, in Cheyenne, 777-8683.

Saturday, February 5, 2011

Saturday roundup

Labor, industry back changes in unemployment insurance that make re-training an option

Bill taps millions in federal funding to help those seeking work

By Dan Neal and Sarah Gorin

Unemployed Wyoming workers who want training in skills that could open doors to other jobs will get a boost if a bill to extend long-term unemployment benefits becomes law. Both industry and labor support the bill.

Rep. Cathy Connolly (D-HD13, Laramie) sponsored HB 244 – Unemployment insurance amendments.
It will change state statutes to enable Wyoming to take advantage of the extension of long-term unemployment benefits approved by Congress in December. The extension will allow currently unemployed workers to qualify for 13 more weeks of benefits through January 12, 2012. Connolly thinks up to 7,500 unemployed workers could benefit from that extension.

The bill also allows the state to tap $14.2 million in federal funding authorized under the American Recovery and Reinvestment Act. In order to qualify, the state would change its law to allow unemployed workers in approved training programs to continue to receive their unemployment insurance checks.
It also would change the base period to allow more workers to qualify for unemployment insurance benefits.

Wyoming Contractors Association Executive Director Jonathon Downing testified in favor of the bill, calling it “a hand up, not a hand-out.” The Contractors Association offers training to people to get them into other trades. Union locals also offer training.

The training is intense, however, and unemployed workers in nearly every situation would have to forgo unemployment insurance benefits because they do not have time to look for work. The system can force a worker to choose between the benefits needed to feed and clothe his or her family or the training that could open a door to another job or career.

AFL-CIO Executive Secretary Kim Floyd said the change to allow people to receive benefits while training “is an incredible option.” He noted that while Wyoming’s overall employment rate stands at more than 6.5%, unemployment in the construction trades stands at about 21%. “We’ve got a lot of people sitting on the bench.” (Quick aside: This is one of the reasons that the unions and the contractors association have joined forces to push legislation that could mean more state work for resident contractors who hire resident workers. Most state-funded highway and capital construction contracts have gone to contractors from outside the state, Floyd says.)

Joan Evans, director of the Department of Workforce Services, noted the simple extension of benefits will help people who have not been able to find work. “There are some people in desperate situations right now,” she told the committee.

Evans noted the ARRA funds offer important help to the department because they include $1 million for reprogramming to upgrade state administrative systems to handle changes in the law, such as the change in the base period of work used to calculate benefits. When she noted the state system currently uses COBOL programming, a buzz rippled around the committee room. Downing said later it has been many years since he heard of anyone using COBOL.

Addressing committee member concerns about continuing costs to the state after the ARRA funds are used, Downing said the legislature might have to repeal the changes later. Connolly asked the committee to consider the bill as a “pilot project” that will enable the state to use federal funds to evaluate the value of the changes.

The House Minerals, Business and Economic Development Committee amended the bill to delete several pages, including a section that would have allowed payment of benefits when a worker loses a job because his or her spouse’s job requires a change in location. At the urging of Rep. Dan Zwonitzer (R-HD43, Cheyenne) the committee also approved an amendment requiring the department to report on the costs and effects of the changes in by Nov. 15.

“That way we can fix our computer system and see if we want to change the law back,” Zwonitzer said.

House leadership referred the bill to be heard by the House Appropriations Committee Monday. The bill must be heard in the House Committee of the Whole by the end of the day Monday or it dies for the year. If that happens, the state loses the opportunity to tap the ARRA funds. States have until Aug. 22, 2011 to submit their applications to the U.S. Department of Labor to certify that they comply with the specific provisions of the ARRA’s incentive funding program.

“Validity” of Marriage

HB 74 – Validity of marriage was heard by the Senate Agriculture, State and Public Lands and Cultural Resources Committee. Opponents argued that the bill violates Equal Protection rights guaranteed by the U.S. Constitution, voids legal contracts, and puts in doubt the status of legally married same-sex couples and their children.

House Majority Floor Leader Tom Lubnau pooh-poohed the criticism of the bill so loudly heard while it made its way through the House. “I don’t see this as a monumental civil rights battle,” he said.

Kiefer Partridge, a UW student and member of the WyWatch Political Action Committee, supported the bill, saying that state law should be biblically sound. According to Partridge, the concept of separation of church and state was meant to protect churches from the state, not to exclude churches from advocating for religiously-derived policy.

That’s a long stretch from the idea that separation of church and state prevents the adherents of one church or religion from using the state to impose their credo on the faithful of another belief or on people who follow no religion.

Tax on Wind Power Whirling Around
HB 191 – Wind power taxation narrowly passed Committee of the Whole, 28-24. Opponents said it takes too long – 20 years – to phase-in the $3 per megawatt hour (MWH) tax on power generated by wind farms already constructed in the state. They also claimed the bill is not ready, since sponsors said they would have to bring major amendments in subsequent readings.

The ESPC supports the existing wind tax structure, which imposes both sales tax and a MWH tax (although the MWH tax could be higher!). HB 191 “finances” sales tax via a higher MWH tax, which places some risk on the state if anticipated wind power development does not actually happen. Moreover, the sloooowwww phase-in of the MWH tax on existing projects is unjustified, as these projects never paid sales tax due to an exemption that expired at the end of 2010.

Data Not Needed

The bill extending an existing sales and use tax exemption for purchases of manufacturing equipment, HB 143 - Manufacturing tax exemption, passed the Senate Revenue Committee 4-1 last Thursday.

As in the House, economic development organizations and manufacturers lined up to say how much they like the tax exemption, and asserted that new taxes generated by development make up for the loss in sales and use tax collections: $53 million and growing since the exemption was enacted six years ago.

The ESPC, which opposed the tax exemption from the beginning and advocated successfully for the first follow-up reporting on a tax exemption, went through this year’s report on the exemption. It shows that the percentage of manufacturing jobs in Wyoming has gone down slightly since the tax exemption began, and that the absolute number of manufacturing jobs went up only slightly, but went down with the recession.

The report also shows while manufacturing wages are higher than in other economic sectors, part-time employees in manufacturing receive fewer benefits than part-time employees in other sectors.

Finally, the report notes that most of the benefit of the tax exemption has gone to a handful of manufacturers, principally the state’s two major refineries, Frontier Refining in Cheyenne and the Sinclair refinery. The ESPC collected data from the Laramie and Carbon county assessors to show that property tax data did not support the assertion that the sales tax exemption was made up for by increases in other tax revenues.

Senator Case asked most of the proponents why manufacturing should get a sales and use tax exemption but not other types of businesses. This question was raised in the ESPC’s testimony as well, a particularly pertinent one given the complete absence of any concrete documentation of the exemption’s benefits.

Chairman John Hines (R-S23, Gillette) and Senators Paul Barnard (R-S15, Evanston), Fred Emerich (R-S5, Cheyenne) and Drew Perkins (S-29, Casper) voted for the bill; Senator Cale Case (R-S25, Lander) cast the dissenting vote.

Participate
Citizens can register their opinions on specific legislation by using the “Online Hotline” or the telephone Hotline – 1-866-966-8683 or, in Cheyenne, 777-8683.