CO Code § 39-29-108 (2021)
2021 Colorado Code|Title 39 - Taxation|Article 29 - Severance Tax|§ 39-29-108. Allocation of Severance Tax Revenues - Definitions - Repeal

  Except as provided in subsections (2) and (3) of this section, the total gross receipts realized from the severance taxes imposed on minerals and mineral fuels under the provisions of this article shall be credited as follows:   For oil and gas, one hundred percent to the state general fund;    For oil shale, forty percent to the state general fund, forty percent to the state severance tax trust fund created by section 39-29-109, and twenty percent to the local government severance tax fund created by section 39-29-110;    For molybdenum, as follows:   For fiscal years ending on or before June 30, 1979, seventy percent to the state general fund, twenty percent to the state severance tax trust fund created by section 39-29-109, and ten percent to the local government severance tax fund created by section 39-29-110;    For the fiscal year ending June 30, 1980, sixty percent to the state general fund, thirty percent to the state severance tax trust fund created by section 39-29-109, and ten percent to the local government severance tax fund created by section 39-29-110;    For the fiscal year ending June 30, 1981, fifty percent to the state general fund, forty percent to the state severance tax trust fund created by section 39-29-109, and ten percent to the local government severance tax fund created by section 39-29-110;       For coal and metallic minerals, as follows:   For fiscal years ending on or before June 30, 1979, forty percent to the state general fund, fifteen percent to the state severance tax trust fund created by section 39-29-109, and forty-five percent to the local government severance tax fund created by section 39-29-110;    For the fiscal year ending June 30, 1980, thirty percent to the state general fund, twenty-five percent to the state severance tax trust fund created by section 39-29-109, and forty-five percent to the local government severance tax fund created by section 39-29-110;    For the fiscal year ending June 30, 1981, twenty percent to the state general fund, thirty-five percent to the state severance tax trust fund created by section 39-29-109, and forty-five percent to the local government severance tax fund created by section 39-29-110.            Repealed.    Except as set forth in subsection (2)(d) of this section, of the total gross receipts realized from the severance taxes imposed on minerals and mineral fuels under the provisions of this article after June 30, 2017, fifty percent shall be credited to the state severance tax trust fund created by section 39-29-109, and fifty percent shall be credited to the local government severance tax fund created by section 39-29-110.    Repealed.    The state treasurer shall credit an amount of the increased coal tax that is attributable to the reduction or discontinuation of the exemption in section 39-29-106 (2)(b) and the credits in section 39-29-106 (3) and (4) to the just transition cash fund created in section 8-83-504 (1). (2.5) Repealed.       Effective July 1, 1981, the total gross receipts from any taxpayer who has previously claimed the full amount of the credit for an approved contribution under section 39-29-107.5 shall be allocated solely to the state severance tax trust fund until such time as there is allocated to such fund, in addition to any current allocation to such fund, an amount equal to what would have been allocated to such fund during the time the taxpayer claimed such credit.      Notwithstanding any provisions of this section to the contrary, for the 1987-88, 1988-89, 1989-90, 1990-91, 1991-92, 1992-93, and 1993-94 fiscal years, those gross receipts realized from the severance taxes imposed on minerals and mineral fuels which would otherwise be credited to the state severance tax trust fund under the provisions of this section shall be credited to the state general fund.    Notwithstanding any provisions of this section to the contrary, for the 1994-95 fiscal year, those gross receipts realized from the severance taxes imposed on minerals and mineral fuels which would otherwise be credited to the state severance tax trust fund under the provisions of this section shall be credited to the uranium mill tailings remedial action program fund created in section 39-29-116 (2); except that the amount credited to such fund during the 1994-95 fiscal year shall not exceed five million dollars. Any receipts in excess of five million dollars shall be credited to the state severance tax trust fund.    Notwithstanding any provisions of this section to the contrary, for the 1995-96 and 1996-97 fiscal years, those gross receipts realized from the severance taxes imposed on minerals and mineral fuels which would otherwise be credited to the state severance tax trust fund under the provisions of this section shall be credited to the uranium mill tailings remedial action program fund created in section 39-29-116 (2); except that the amount credited to such fund during the 1995-96 and 1996-97 fiscal years shall not exceed two and one-half million dollars per fiscal year. Any receipts in excess of two and one-half million dollars shall be credited to the state severance tax trust fund.         To assist in the preparation of state budgets, the consensus revenue estimate group shall prepare a quarterly forecast of severance revenues, including price and production volume.    As used in this subsection (5):   “Consensus revenue estimate group” means the staff of the legislative council appointed pursuant to section 2-3-304, C.R.S., in consultation with the office of state planning and budgeting created in section 24-37-102, C.R.S.    “Price insurance contract” means a written agreement between the state treasurer and a qualified counterparty relating to a commodity price for crude oil and natural gas based on levels of floor transactions or forward rate transactions executed through standard financial industry mechanisms.    “Qualified counterparty” means a person whose long-term obligations are rated, at the time a price insurance contract is executed, in one of the two top rating categories of a nationally recognized rating agency.    “Severance revenues” means:   The revenues generated from taxes levied pursuant to this article; and    The state share of federal mineral leasing royalties received pursuant to section 34-63-102, C.R.S.          Repealed.         The director of the office of state planning and budgeting and the executive directors of the departments of revenue, natural resources, education, and local affairs, or their designees, shall review and analyze the following elements of the state severance tax:   Data collection;    The tax structure;    Tax expenditures;    Taxes paid by industry to special districts;    Tax filing and process efficiencies; and    The allocation of the tax revenues.       The persons identified in subsection (6)(a) shall establish a stakeholder group, consisting of affected industries and parties, including local government representatives, to assist their review and analysis.    Based on their review and analysis, the persons identified in subsection (6)(a) of this section shall prepare written recommendations for any changes to the severance tax to the joint budget committee no later than December 15, 2021. Prior to submittal of the written recommendations, the stakeholder group shall have an opportunity to review the draft recommendations and individual stakeholders may provide comments in response to the recommendations to be included as part of the recommendations.    This subsection (6) is repealed, effective July 1, 2022.        History. Source: L. 77: Entire article added, p. 1847, § 1, effective January 1, 1978. L. 79: (1)(c)(III), (1)(d)(III), and (2) amended, pp. 1508, 1641, §§ 2, 56, effective July 19. L. 81: IP(1) amended and (3) added, p. 1903, § 2, effective June 19. L. 87: (4) added, p. 1469, § 1, effective July 1. L. 88: (4) amended, p. 1346, § 1, effective May 11. L. 89: (4) amended, p. 1516, § 1, effective April 7. L. 90: (4) amended, p. 1748, § 1, effective April 3. L. 91: (4) amended, p. 1951, § 1, effective April 11. L. 92: (4) amended, p. 2237, § 1, effective February 25. L. 93: (4) amended, p. 10, § 1, effective February 16; (4) amended, p. 445, § 1, effective April 19. L. 95: (2.5) added, p. 980, § 3, effective May 25. L. 2007: (5) added, p. 1900, § 1, effective June 1. L. 2012: (2) amended,(HB 12-1315), ch. 224, p. 978, § 45, effective July 1. L. 2015: (2)(a)(I) amended and (2)(c) added,(SB 15-255), ch. 138, p. 419, § 1, effective May 1. L. 2016: (2)(a)(II) amended,(SB 16-218), ch. 289, p. 1173, § 4, effective June 10. L. 2021: (6) added,(SB 21-281), ch. 255, p. 1494, § 3, effective June 18; (2)(b) amended and (2)(d) added,(HB 21-1312), ch. 299, p. 1798, § 13, effective July 1.    Editor's note:    Subsection (2.5)(b) provided for the repeal of subsection (2.5), effective June 30, 1999. (SeeL. 95, p. 980.)    Subsection (5)(c)(II) provided for the repeal of subsection (5)(c), effective July 1, 2008. (SeeL. 2007, p. 1900.)      Subsection (2)(a)(II) provided for the repeal of subsection (2)(a), effective July 1, 2017. (SeeL. 2016, p. 1173.) (3) (a) Subsection (2)(a)(II) provided for the repeal of subsection (2)(a), effective July 1, 2017. (SeeL. 2016, p. 1173.)    Subsection (2)(c)(II) provided for the repeal of subsection (2)(c), effective January 1, 2017. (SeeL. 2015, p. 419.)        Cross references:    For the legislative declaration contained in the 1995 act enacting subsection (2.5), see section 1 of chapter 202, Session Laws of Colorado 1995.    For the legislative declaration in SB 21-281, see section 1 of chapter 255, Session Laws of Colorado 2021. For the legislative declaration in HB 21-1312, see section 1 of chapter 299, Session Laws of Colorado 2021.