# Colorado SB25-040: Future of Severance Taxes & Water Funding Task Force Colorado SB25-040, Future of Severance Taxes & Water Funding Task Force, is a 2025 Regular Session Senate bill sponsored by Cleave Simpson (Republican), Dylan Roberts (Democratic), Karen McCormick (Democratic) and 1 others; status signed, last action 2025-05-15 (Governor Signed) (as of 2026-10-19). - Canonical: https://policyrisk.com/state-bill/CO-SB25-040-2025A - As of: 2026-10-19 - Plain-text twin of the page above; the HTML and this file carry the same facts. ## Facts - Bill: Colorado SB25-040 - State: Colorado - Session: 2025 Regular Session - Title: Future of Severance Taxes & Water Funding Task Force - Status: signed - Chamber: Senate - Introduced: 2025-01-08 - Last action: 2025-05-15, Governor Signed - Sponsors: Cleave Simpson (Republican), Dylan Roberts (Democratic), Karen McCormick (Democratic), Matthew Martinez (Democratic) - Cosponsors: 27 - Subjects: Agriculture, Water - Touches household money: no - Roll calls: 8 (195 yes, 10 no in all) - Economic provisions PRIA read: 3 ## Summary No summary available. ## Bill overview: provisions PRIA read - Colorado studies future water funding sources: benefit, low. The law creates a nine-member task force, with appointments due September 1, 2025, and public meetings allowing public testimony. Colorado’s Department of Natural Resources must hire an outside party to study funding water needs and local energy-impact grants without severance taxes. The study must… - Oil and gas tax credits change: benefit, low. Oil and gas producers get severance tax credits for qualifying property taxes on leaseholds and royalty interests. The credit equals 75% of qualifying taxes for tax years starting in 2024–2026 and 87.5% for 2027. Taxes on specified drilling, production, storage, and pipeline equipment and facilitie… - Producer tax revenue funds clean-energy credits: mixed, low. For state fiscal years 2023–24 through 2026–27, Colorado redirects specified extra oil and gas severance tax revenue. The money goes to the Decarbonization Tax Credits Administration Cash Fund, which pays for administering those credits. It includes revenue tied to a 12.5% credit reduction for tax… ## Sponsors and cosponsors - Sponsor: Cleave Simpson (Republican), Senate - Sponsor: Dylan Roberts (Democratic), Senate - Sponsor: Karen McCormick (Democratic), House - Sponsor: Matthew Martinez (Democratic), House - Cosponsor: Andrew Boesenecker (Democratic), House - Cosponsor: Brianna Titone (Democratic), House - Cosponsor: Chad Clifford (Democratic), House - Cosponsor: Dusty Johnson (Republican), House - Cosponsor: Elizabeth Velasco (Democratic), House - Cosponsor: Jennifer Bacon (Democratic), House - Cosponsor: Jarvis Caldwell (Republican), House - Cosponsor: Jamie Jackson (Democratic), House - Cosponsor: Junie Joseph (Democratic), House - Cosponsor: Julie McCluskie (Democratic), House - Cosponsor: Kyle Brown (Democratic), House - Cosponsor: Katie Stewart (Democratic), House - Cosponsor: Lesley Smith (Democratic), House - Cosponsor: Larry Don Suckla (Republican), House - Cosponsor: Monica Duran (Democratic), House - Cosponsor: Mandy Lindsay (Democratic), House - Cosponsor: Meghan Lukens (Democratic), House - Cosponsor: Naquetta Ricks (Democratic), House - Cosponsor: Rep. R. Pugliese - Cosponsor: Rep. S. Bird - Cosponsor: Sheila Lieder (Democratic), House - Cosponsor: Tisha Mauro (Democratic), House - Cosponsor: Tammy Story (Democratic), House - Cosponsor: Ty Winter (Republican), House - Cosponsor: Judy Amabile (Democratic), Senate - Cosponsor: Marc Catlin (Republican), Senate - Cosponsor: Rod Pelton (Republican), Senate ## Roll call votes | Date | Chamber | Motion | Result | Yes | No | Other | | --- | --- | --- | --- | --- | --- | --- | | 2025-05-05 | Senate | House amendments: Repass | pass | 35 | 0 | | | 2025-05-05 | Senate | House amendments: Concur | pass | 35 | 0 | | | 2025-05-02 | House | Third reading: Bill | pass | 57 | 7 | | | 2025-05-01 | House | Refer Senate Bill 25-040 to the Committee of the Whole. | pass | 8 | 3 | | | 2025-04-21 | House | Refer Senate Bill 25-040 to the Committee on Appropriations. | pass | 13 | 0 | | | 2025-04-15 | Senate | Third reading: Bill | pass | 34 | 0 | | | 2025-04-11 | Senate | Refer Senate Bill 25-040, as amended, to the Committee of the Whole. | pass | 7 | 0 | | | 2025-01-29 | Senate | Refer Senate Bill 25-040, as amended, to the Committee on Appropriations. | pass | 6 | 0 | | ## Actions (15) - 2025-05-15: Governor Signed (House) - 2025-05-12: Signed by the President of the Senate (Senate) - 2025-05-12: Sent to the Governor (House) - 2025-05-12: Signed by the Speaker of the House (House) - 2025-05-05: Senate Considered House Amendments - Result was to Concur - Repass (Senate) - 2025-05-02: House Third Reading Passed - No Amendments (House) - 2025-05-01: House Committee on Appropriations Refer Unamended to House Committee of the Whole (House) - 2025-05-01: House Second Reading Special Order - Passed with Amendments - Floor (House) - 2025-04-21: House Committee on Agriculture, Water & Natural Resources Refer Unamended to Appropriations (House) - 2025-04-15: Senate Third Reading Passed - No Amendments (Senate) - 2025-04-15: Introduced In House - Assigned to Agriculture, Water & Natural Resources (House) - 2025-04-14: Senate Second Reading Special Order - Passed with Amendments - Committee, Floor (Senate) - 2025-04-11: Senate Committee on Appropriations Refer Amended to Senate Committee of the Whole (Senate) - 2025-01-29: Senate Committee on Agriculture & Natural Resources Refer Amended to Appropriations (Senate) - 2025-01-08: Introduced In Senate - Assigned to Agriculture & Natural Resources (Senate) ## Bill text - Engrossed: [PDF](https://leg.colorado.gov/bill_files/85813/download) - Final Act: [PDF](https://leg.colorado.gov/bill_files/85806/download) - Introduced: [PDF](https://leg.colorado.gov/bill_files/85814/download) - Reengrossed: [PDF](https://leg.colorado.gov/bill_files/85812/download) - Rerevised: [PDF](https://leg.colorado.gov/bill_files/85808/download) - Revised: [PDF](https://leg.colorado.gov/bill_files/85810/download) - Signed Act: [PDF](https://leg.colorado.gov/bill_files/40445/download) ## Related bills - SB25-279: Colorado Code of Military Justice Updates (signed) - HB25-1234: Utility Consumer Protection (signed) - HB25-1307: Updating Technical References in Education Law (signed) - SB25-163: Battery Stewardship Programs (signed) - SB25-261: Property Tax Deferral Program Administration (signed) - SB25-167: Invest State Funds to Benefit Communities (signed) ## Sources - [Engrossed (PDF)](https://leg.colorado.gov/bill_files/85813/download) - [Final Act (PDF)](https://leg.colorado.gov/bill_files/85806/download) - [Introduced (PDF)](https://leg.colorado.gov/bill_files/85814/download) - [Reengrossed (PDF)](https://leg.colorado.gov/bill_files/85812/download) - [Rerevised (PDF)](https://leg.colorado.gov/bill_files/85808/download) - [Revised (PDF)](https://leg.colorado.gov/bill_files/85810/download) - [Signed Act (PDF)](https://leg.colorado.gov/bill_files/40445/download) ## Related - [SB25-279: Colorado Code of Military Justice Updates](https://policyrisk.com/state-bill/CO-SB25-279-2025A) - [HB25-1234: Utility Consumer Protection](https://policyrisk.com/state-bill/CO-HB25-1234-2025A) - [HB25-1307: Updating Technical References in Education Law](https://policyrisk.com/state-bill/CO-HB25-1307-2025A) - [SB25-163: Battery Stewardship Programs](https://policyrisk.com/state-bill/CO-SB25-163-2025A) - [SB25-261: Property Tax Deferral Program Administration](https://policyrisk.com/state-bill/CO-SB25-261-2025A) - [SB25-167: Invest State Funds to Benefit Communities](https://policyrisk.com/state-bill/CO-SB25-167-2025A) - [Colorado bills](https://policyrisk.com/states/colorado/bills) - [Colorado state hub](https://policyrisk.com/states/colorado) - [All state legislation](https://policyrisk.com/state-bills) Source: PRIA, https://policyrisk.com/state-bill/CO-SB25-040-2025A (as of 2026-10-19).