Severance
Year |
Revenue |
| 2000 |
$36 million |
| 2001 |
$69 million |
| 2002 |
$51 million |
| 2003 |
$26 million |
| 2004 |
$119 million |
| 2005 |
$143 million |
| 2006 |
$211.8 million |
| 2007 |
$136.9 million |
Colorado levies a severance tax upon nonrenewable natural resources that are removed from the Earth. The tax is applied to gross oil and gas income. "Oil" means crude oil and condensate, and "gas" means natural gas, coalbed methane, and carbon dioxide.
The severance tax is graduated, ranging from 2 percent for income under $25,000 to 5 percent for income of $300,000 and over. Very small operations are exempt. A credit is allowed against severance tax equal to 87.5 percent of all ad valorem taxes paid or assessed during the tax year.