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Colorado's severance tax was enacted in 1977. The severance tax is imposed on the production or extraction of metallic minerals, molybdenum, oil and gas, oil shale, and coal. Taxes are collected by the Department of Revenue. ... Severance tax revenue is subject to the spending and revenue limitations of TABOR.

In the state of Colorado, severance taxes may be withheld and remitted to the State an owner's behalf. If applicable, an owner will receive a DR21-W tax form showing various revenue and any severance tax withheld during the previous calendar year.

Sixteen states and the District of Columbia do not levy severance taxes. California does not have a severance tax but levies an assessment fee on oil and gas produced in California, and Census records this as severance tax revenue. Alaska typically depends on severance tax revenue more than any other state.

In Colorado, owners of producing oil and gas wells are liable for taxes at both the local and state level. ... (Ad Valorem Credit) allows taxpayers to claim a credit of 87.5 percent of the property taxes assessed or paid to a local government on oil and gas produced to offset their state severance tax liability.

DR 0021W -Oil & Gas Withholding Statement -Severance Tax Withheld from Oil Shale and Oil/Gas Payments. DR 0021X- Amended Colorado Oil & Gas Severance Tax Return. DR 0206 - Computation of Penalty Due Based on Underpayment of Colorado Severance Estimated Tax.

Examples of severance taxes Production volume tax: This type of tax is levied on the volume of oil and gas produced. For oil, it can be levied per barrel of oil. ... Production value tax: This type of tax is levied on the value of the produced oil or natural gas.

Severance taxes are taxes on the extraction of natural resources such as oil and natural gas. These taxes constitute only a small percentage of state and local general revenue nationally, but are often a substantial share of revenue in a few, natural resource-rich states notably, Alaska, North Dakota, and Wyoming.

Summary. An ad valorem tax is a tax that is based on the assessed value of a property, product, or service. The most common ad valorem tax examples include property taxes on real estate, sales tax on consumer goods, and VAT on the value added to a final product or service.

Most (but not all) oil producing states levy a severance tax on its oil production. This tax is based on either the volume or value of the production. Royalty and mineral owners pay their pro rata share of these oil severance taxes.

In the state of Colorado, severance taxes may be withheld and remitted to the State an owner's behalf. If applicable, an owner will receive a DR21-W tax form showing various revenue and any severance tax withheld during the previous calendar year.

Severance tax is a state tax imposed on the extraction of non-renewable natural resources that are intended for consumption in other states. These natural resources include such as crude oil, condensate and natural gas, coalbed methane, timber, uranium, and carbon dioxide.

Taxes on Oil and Gas Production As a primary approach, states have imposed taxes and fees on the extraction, production and sale of natural gas and oil. These severance taxes taxes applied to materials severed from the ground tax the extraction or production of oil, gas and other natural resources.