House restores local share for new mineral permits, directing 20% of severance tax to counties

House Bill 10‑89 passed the House on Feb. 19 to modify the distribution of mineral severance tax revenue for new permits issued after July 1, 2026.

Representative Fitzgerald said the bill restores a 20% share for the county where minerals are severed — a share that had effectively been capped historically and resulted in local counties not receiving additional revenue for decades. Fitzgerald outlined the local impacts, saying Lawrence County had reached a $1,000,000 cap in 1994 and had not received further distributions since then.

The bill passed with little recorded opposition in committee, according to the sponsor, and the House approved final passage on voice and recorded votes; the clerk displayed ayes 65, excused 5 and declared HB10‑89 passed.

The bill applies to revenues collected from severance taxation on new permits after the July 1, 2026 effective date. Sponsors said the change would provide counties with resources to address infrastructure and service impacts from mining activity.