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Low Oil Prices Bad For State Revenue

Associated Press - January 14, 2015 6:19 am

Although falling gas prices are reducing the amount of oil severance taxes Kansas is expected to collect, state lawmakers say there’s a bright spot to the otherwise dim projections. Residents will have more money in their pockets to spend on other things.

Kansas Legislative Research Department economist Chris Courtwright appeared Tuesday before the House Appropriations Committee. He says forecasters in November revised their estimate of how much severance tax money would come in by nearly $8.2 million, based on oil prices of $80 a barrel.

But with the price of Kansas oil at $35.75 a barrel as of Tuesday, Courtwright says severance tax receipts are bound to go much lower.

He says there’s a chance the low prices could stimulate the economy and raise tax revenues elsewhere.

Fred Hanson

January 14, 2015 at 11:45 am

BUT THINK OF ALL THE TAX MONEY THEY HAVE PUT ON A GALLON OF GAS AT THE PUMP. PEOPLE WILL BE PUMPING ALOT MORE GAS TO TRAVEL ECT THEREFORE IT SEEMS TO ME TO BE A WASH.

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