§ 39-29-106 — Tax on the severance of coal

Colorado § 39-29-106

• Jurisdiction: Colorado
• Title 39: Taxation
• Art.: Severance Tax

Text

(1) In addition to any other tax,
there shall be levied, collected, and paid for each taxable year a tax upon the
severance of all coal in this state. Such tax shall be levied against every person
engaged in the severance of coal. Subject to the exemption and credits authorized
in subsections (2), (3), and (4) of this section, the rate of the tax shall be thirty-six
cents per ton of coal.

(2) (a) Repealed.

(b) On and after July 1, 1999, but before January 1, 2026, no tax provided for
in subsection (1) of this section is imposed on the first:

(I) Three hundred thousand tons of coal produced in each quarter of the 2021
taxable year;

(II) Two hundred forty thousand tons of coal produced in each quarter of the
2022 taxable year;

(III) One hundred eighty thousand tons of coal produced in each quarter of
the 2023 taxable year;

(IV) One hundred twenty thousand tons of coal produced in each quarter of
the 2024 taxable year; and

(V) Sixty thousand tons of coal produced in each quarter of the 2025 taxable
year.

(c) Repealed.

(3) For taxable years commencing prior to January 1, 2026, there is allowed,
as a credit against the tax imposed by subsection (1) of this section, an amount
equal to the percentage set forth in subsection (3.5) of this section of such tax for
coal produced from underground mines.

(3.5) The percentage for the credits allowed under subsections (3) and (4) of
this section is equal to:

(a) Fifty percent for the 2021 taxable year;

(b) Forty percent for the 2022 taxable year;

(c) Thirty percent for the 2023 taxable year;

(d) Twenty percent for the 2024 taxable year; and

(e) Ten percent for the 2025 taxable year.

(4) For taxable years commencing prior to January 1, 2026, there is allowed,
as an additional credit against the tax imposed by subsection (1) of this section, an
amount equal to the percentage set forth in subsection (3.5) of this section of such
tax for the production of lignitic coal, as such coal is classified by the American
society for testing and materials (ASTM) in their D 388 standard for the
classification of coals by rank.

(5) For every full one and one-half percent change in the index of producers'
prices for all commodities prepared by the bureau of labor statistics of the United
States department of labor, the tax rate provided in subsection (1) of this section
shall be increased or decreased one percent. The executive director shall determine
such adjustments to the rate of tax based upon changes in the index of producers'
prices from the level of such index as of January, 1978, to the level of such index as
of the last month of the quarter immediately preceding the quarter for which any
taxes are due.

Legislative History

Source: L. 77: Entire article added, p. 1846, � 1, effective January 1, 1978. L. 79: (5) amended, p. 1505, � 1, effective January 1, 1980. L. 84: (2) amended, p. 1030, � 1, effective July 1. L. 86: (2) amended, p. 1137, � 1, effective April 11. L. 88: (5) amended, p. 1344, � 2, effective January 1; (1) amended, p. 1344, � 1, effective July 1. L. 90: (2)(a) and (2)(b) amended and (2)(c) repealed, p. 1747, �� 1, 2, effective May 25. L. 94: (1) amended, p. 334, � 2, effective March 29. L. 99: (2)(a) and (2)(b) amended, p. 926, � 4, effective May 24. L. 2008: (2)(b) amended, p. 1680, � 5, effective August 5. L. 2021: (2)(b), (3), and (4) amended and (3.5) added, (HB 21-1312), ch. 299, p. 1797, � 12, effective July 1.