Federal Mineral Lease and State Severance Tax
Direct Distribution Reports
PDF | 2008 Federal Mineral Lease Report
PDF | 2008 Severance Tax Direct Distribution Report
~ These reports will be posted on August 29, 2008
House Bill 08-1084 Study Group on the Colorado Severance Tax Credit
Program Contact:
Charlie Unseld
Division of Local Government
1313 Sherman Street, Room 521
Denver, CO 80203
Direct: (303) 866-2353
Main: (303) 866-2156
Fax: (303) 866-4819
charles.unseld@state.co.us
Overview:
The Colorado Department of Local Affairs (DOLA) distributes revenue from energy and mineral extraction statewide. The dollars local governments will be receiving as part of annual Severance Tax and Federal Mineral Lease Direct distributions to counties and municipalities is detailed in the reports listed above. These distributions represent revenues received by the state from July 1, 2006 through June 30, 2007.
State law directs DOLA to distribute 15 percent of the revenue collected in the Local Government Severance Tax Fund to counties or municipalities on the basis of the residence of severance taxpayer employees reported to the Department of Revenue by the severance taxpayers. This year's distribution totaled $11,387,102.
Federal Mineral Lease Direct Distributions are revenues the state receives based upon energy and mineral extraction activities occurring on federal lands within Colorado. These funds are also distributed by DOLA on the basis of the residence of production employees. This year's distribution totaled $4,740,091.
The distribution of both funds is based on the counts of employees of energy and mineral producing companies. This new method is the result of an Attorney General's Opinion (AGO) reinterpreting the manner in which Federal Mineral Lease funds were to be distributed.
An Oversight Committee consisting of county, municipal and industry representatives reviewed employee counts, resolved discrepancies and ambiguities in the data, and gave direction to DOLA on how to make the employee count as accurate as possible.
PDF | 2007 Federal Mineral Lease Report
PDF | 2007 Severance Tax Direct Distribution Report
PDF | 2006 Federal Mineral Lease Report
PDF | 2006 Severance Tax Direct Distribution Report
Senate Bill 08-218 - New for 2009
Senate Bill 08-218, which passed in the most recent state legislative session, made significant changes to the method and process for the distribution of Federal Mineral Lease receipts to local governments. The first payments under this new annual distribution method will be made in August of 2009.
PDF | Flowchart of Federal Mineral Lease Distributions under SB 08-218
PDF | SB 08-218