OPINION: A horrible new tax proposal

The rising cost of energy has pushed marginal middle-class families to the brink of poverty, and has threatened the economy of our entire state and the nation.

So what does Colorado Gov. Bill Ritter do, at a time like this? He proposes a ballot measure that, if approved, would impose a huge new tax on the state's gas and oil industry, promising only to increase energy costs.

Voters, this one is easy. Vote "no" on Amendment 58.

In addition to imposing new taxes on gas and oil, the Ritter proposal stands to cause property tax increases in some Colorado counties. That's because Amendment 58 would end a tax benefit that allows oil and gas companies to deduct the cost of local property taxes from their state severance tax bill.

The tax deduction was initiated long ago for a sound reason Ritter apparently has chosen to dismiss. It was designed to keep oil and gas companies from choosing to drill only in counties with the lowest property taxes, and enables them to set up shop in locations that made the most logistical sense. In some locations of Weld County, for example, numerous taxing districts that overlay property owned by an oil company could have created a disincentive for drilling, had it not been for the deduction.

Under Ritter's proposal, oil and gas companies would be forced to shop around for potential drilling locations that involve the least amount of tax overhead. And we should hope they would do so, as taxes on commodities are always passed along to consumers.

High taxes on oil and gas drilling mean high prices for oil and gas users.

If Ritter's big tax proposal passes, and oil and gas companies change locations, taxpayers in the counties where the companies have traditionally operated will be left holding the bag. Property taxes will have to increase in order to make up the void.

Vote "no" on Amendment 58. There is no upside for consumers.