“Maintaining a strong soda ash industry is critical to the economy in
“Reducing the soda ash royalty has been a major priority of the
“Passage of this legislation is a tremendous victory for
S. 203, restores the original royalty the federal government imposed on soda ash in the Mineral Leasing Act of 1920. The reduction will last for five years.
The move will resume the royalty rate consistent with the Federal Land Policy and Management Act of 1976 that requires the Secretary of the Interior to receive “fair market value” for the use of public lands and their resources.
The current 6 percent royalty on each ton of soda ash was imposed in 1995 at a time when exports were rising to record levels. It was a windfall tax that recognized the industry’s significant expansion and future outlook. Over the last decade, the export growth that created the windfall in the 1990s was severely curtailed, as several trading partners erected barriers to
In April of 2004, Senator Thomas held a field hearing in The higher tax created a 30 percent decline in employment in this industry in
The delegation made several attempts, through amendments and free-standing bills, to address royalty relief for the soda ash industry. However, the royalty relief package continually faced objections in both houses of Congress before being resolved today.
“Without the support and effort by the soda ash companies and their employees, getting this legislation through Congress would have been even more difficult. Our strong coalition helped everyone stay focused and put this royalty relief in place,” the delegation said.
“The federal government has the opportunity to be a responsible partner and ease its tax burden so the industry can remain strong while protecting thousands of jobs in