COVID-19 Reaction: Cut Oil & Gas Tax Breaks.

Where: Colorado

What is Colorado’s reaction to state revenue losses? To consider cutting tax breaks for oil and gas

What oil & gas tax exceptions are being reconsidered? low gas prices will trigger exceptions to severance taxes that may result in $0 in severance taxes

How did Colorado get here? In 2018, Colorado gave oil & gas this tax break that grants Colorado operators a tax credit equal to 87.5% of the property taxes paid on the prior year’s oil or natural gas production to offset to their current year’s severance tax liability

Other Colorado severance tax exemptions:

• small, marginal wells, stripper wells, are exempt

Colorado Legislature | Legislative Council | Effective Tax Rates on Oil and Natural Gas