House Bill 08-1084 Study Group on the Colorado Severance Tax Credit
PDF | Final Report
Meeting Schedule and Agenda
Reference Documents
PDF | House Bill 08-1084 - The Act
The state severance tax statute (CRS 39-29-107.5) provides for a credit against severance tax liability for contributions to public facilities made by severance taxpayers with new or expanded production. The purpose of this credit is to:
- Provide risk sharing in the "front-end finance" of local government facilities required to support significant impacts from expansion of mineral production;
- Build a partnership between the mineral producers and local governments for the development of adequate public facilities to accommodate the socio-economic effects of the mineral industry;
- Provide the state a means to review such credits to assure that the use of funds is appropriate to the intentions of the statute; and
- Return to the Severance Tax Trust Fund those monies "borrowed" in the exercise of approved severance tax credits.
From 1980 to 1994 fifty five agreements were submitted for credit and forty were approved totaling $7.5 million. For a variety of reasons there have been no formal applications submitted since 1994.
To encourage use of this credit for local government project financing, the legislature passed House Bill 08-1084 which set up a Study Group that will likely look at two general topics:
- How to improve the severance tax credit statute; and
- How to combine the severance tax credit statute with other finance mechanisms for large local government infrastructure projects.
Meeting Schedule and Agenda
| June 26, 2008 | ||
| July 15, 2008 | ||
| August 14, 2008 | ||
| September 4, 2008 | ||
| October 1, 2008 | ||
| December 9, 2008 | Minutes |
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| January 7, 2009 | Cancelled
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Reference Documents
- Severance Tax Credit Statute Modernization Memo
- House Bill 08-1084 - setting up the Study Group
- History of the Severance Tax Credits
- The Severance Tax Credit Application Process
- Severance Tax Credit Review Policies
- The current Severance credit statute
- Brief Description of Why Severance Tax is so Variable
- The Corporate Income Tax Credit for Impact Assistance Contributions to Local Governments
- Severance Tax Credit Overview Presentation - July 15, 2008
- Legislative Council Economic Forecast Presentation - July 15, 2008
- Legislative Legal Services Tax Policy Presentation - July 15, 2008
- Impact Assistance Property Tax Prepayment Statute