Colorado Code
Article 29 - Severance Tax
§ 39-29-102. Definitions

[ Editor's note: This version of the introductory portion to this section is effective until January 1, 2022. ] As used in this article, unless the context otherwise requires:
[ Editor's note: This version of the introductory portion to this section is effective January 1, 2022. ] As used in this article 29, unless the context otherwise requires:
(1.5) "Commercial production", for a commercial oil shale facility, means production from such facility in excess of the first fifteen thousand tons per day of oil shale or ten thousand barrels per day of shale oil, whichever is greater. The calculation of the daily production shall be determined by dividing the total production of a calendar month by the total number of days in such month.

(2.5) For tax years commencing on or after January 1, 2000, "gas" means natural gas, coalbed methane, and carbon dioxide.

(a) [ Editor's note: This version of subsection (3)(a) is effective January 1, 2022. ] For oil and gas, the net amount realized by the taxpayer for sale of the oil or gas, whether the sale occurs at the wellhead or after transportation, manufacturing, and processing of the product. Net amount shall be calculated pursuant to rules promulgated by the department of revenue on the basis of the gross lease revenues, less deductions for direct costs actually paid or accrued by the taxpayer for transportation, manufacturing, and processing of the product. For purposes of this subsection (3)(a), direct costs include depreciation. Where the parties to the sale are related parties and the sales price is lower than the price for which that oil or gas could otherwise have been sold to a ready, willing, and able buyer and where the taxpayer was legally able to sell the oil or gas to such a buyer, gross income shall be determined by reference to comparable arms-length sales of like kind, quality, and quantity in the same field or area, less deductions for transportation, manufacturing, and processing done prior to the sale. For purposes of this subsection (3)(a), "related parties" shall be defined by the department of revenue pursuant to rules and regulations.

(4.5) "Local units of government locally impacted" means units of government in the geographic area wherein reside employees of the operation producing the minerals and mineral fuels taxed pursuant to this article. The geographic area shall be determined on the basis of residence as reported in accordance with section 39-29-110 (1)(d).

(6.5) For tax years commencing on or after January 1, 2000, "oil" means crude oil and condensate.

Source: L. 77: Entire article added, p. 1845, § 1, effective January 1, 1978. L. 80: (4.5) added, p. 739, § 1, effective April 10. L. 82: (1.5) added, p. 576, § 1, effective April 2; (5) amended, p. 578, § 1, effective January 1, 1983. L. 85: (3)(a) R&RE, p. 1287, § 1, effective July 1. L. 95: (3)(a) amended and (7) added, p. 979, § 2, effective May 25. L. 2000: (2.5) and (6.5) added, p. 1442, § 1, effective July 1. L. 2021: IP and (3)(a) amended, (HB 21-1312), ch. 299, p. 1797, § 11, effective January 1, 2022.
Cross references: (1) For the legislative declaration contained in the 1995 act amending this section, see section 1 of chapter 202, Session Laws of Colorado 1995.
(2) For the legislative declaration in HB 21-1312, see section 1 of chapter 299, Session Laws of Colorado 2021.