August 23, 2008 01:55 AM UTC

'A Smarter Colorado' Ads Hit Oil Tax Breaks

•  
• by: redstateblues

( – promoted by Colorado Pols)

In the past few days Bill Ritter’s campaign in support of abolishing Colorado’s ad valorem tax credit–A Smarter Colorado–has been airing television ads that hit the oil companies, and their $250-300 million annual tax subsidy, with a political roundhouse kick. The GJ Sentinel has the story.

Ritter said the tax credit, which allows energy companies to subtract 87.5 percent of their property tax bills from the severance taxes they owe, has its roots in the late 1970s when Colorado wanted to help the energy industry establish itself in the state.

State economists have credited the subsidy with severely eating into the amount of money Colorado can use to confront the stresses energy development places on local governments and public infrastructure.

Ritter said the need for the credit is gone, given the health of the energy industry in Colorado.

“There is a time when a tax credit becomes obsolete as a matter of fiscal policy,” Ritter said.

The ads are very effective, showing actors who seem like they could very well be average Coloradans explaining how the subsidy came to be. Though the Governor’s severance tax proposal has come under attack from Republicans like Josh Penry, these ads hit an emotional string that few political ads do. Watch the ads, “Rancher” and “Hiker” and judge for yourself.