(1) Except as provided in subsection (3) of this section, the total gross receipts realized from the severance taxes imposed on minerals and mineral fuels under the provisions of this article shall be credited as follows:
(a) For oil and gas, one hundred percent to the state general fund;
(b) For oil shale, forty percent to the state general fund, forty percent to the state severance tax trust fund created by section 39-29-109, and twenty percent to the local government severance tax fund created by section 39-29-110;
(c) For molybdenum, as follows:
(I) For fiscal years ending on or before June 30, 1979, seventy percent to the state general fund, twenty percent to the state severance tax trust fund created by section 39-29-109, and ten percent to the local government severance tax fund created by section 39-29-110;
(II) For the fiscal year ending June 30, 1980, sixty percent to the state general fund, thirty percent to the state severance tax trust fund created by section 39-29-109, and ten percent to the local government severance tax fund created by section 39-29-110;
(III) For the fiscal year ending June 30, 1981, fifty percent to the state general fund, forty percent to the state severance tax trust fund created by section 39-29-109, and ten percent to the local government severance tax fund created by section 39-29-110;
(d) For coal and metallic minerals, as follows:
(I) For fiscal years ending on or before June 30, 1979, forty percent to the state general fund, fifteen percent to the state severance tax trust fund created by section 39-29-109, and forty-five percent to the local government severance tax fund created by section 39-29-110;
(II) For the fiscal year ending June 30, 1980, thirty percent to the state general fund, twenty-five percent to the state severance tax trust fund created by section 39-29-109, and forty-five percent to the local government severance tax fund created by section 39-29-110;
(III) For the fiscal year ending June 30, 1981, twenty percent to the state general fund, thirty-five percent to the state severance tax trust fund created by section 39-29-109, and forty-five percent to the local government severance tax fund created by section 39-29-110.
(2) (a) Repealed.
(b) Except as set forth in subsections (2)(d) and (2)(e) of this section, of the total gross receipts realized from the severance taxes imposed on minerals and mineral fuels under the provisions of this article after June 30, 2017, fifty percent shall be credited to the state severance tax trust fund created by section 39-29-109, and fifty percent shall be credited to the local government severance tax fund created by section 39-29-110.
(c) Repealed.
(d) The state treasurer shall credit an amount of the increased coal tax that is attributable to the reduction or discontinuation of the exemption in section 39-29-106 (2)(b) and the credits in section 39-29-106 (3) and (4) to the just transition cash fund created in section 8-83-504 (1).
(e) (I) For the state fiscal years 2023-24 through 2026-27, the state treasurer shall credit the discrete increased amount of severance tax for oil and gas production that is attributable to the reduction of the credit against tax pursuant to section 39-29-105 (2)(b)(II) to the decarbonization tax credits administration cash fund created in section 24-38.5-120 (2); except that, for state fiscal years 2024-25 and 2025-26, money credited to the decarbonization tax credits administration cash fund shall not exceed the net revenue from the oil and gas severance tax collection.
(II) Repealed.
(III) As used in this subsection (2)(e), unless the context otherwise requires:
(A) Repealed.
(B) Discrete increased amount of severance tax for oil and gas production means the amount of tax collected that is attributable to a twelve and one-half percent reduction in the severance tax credit for oil and gas production set forth in section 39-29-105 (2)(b)(II) for tax years beginning on or after January 1, 2024, but before January 1, 2026.
(C) Repealed.
(IV) This subsection (2)(e) is repealed, effective December 31, 2036.
(2.5) and (3) Repealed.
(4) (a) Notwithstanding any provisions of this section to the contrary, for the 1987-88, 1988-89, 1989-90, 1990-91, 1991-92, 1992-93, and 1993-94 fiscal years, those gross receipts realized from the severance taxes imposed on minerals and mineral fuels which would otherwise be credited to the state severance tax trust fund under the provisions of this section shall be credited to the state general fund.
(b) Notwithstanding any provisions of this section to the contrary, for the 1994-95 fiscal year, those gross receipts realized from the severance taxes imposed on minerals and mineral fuels which would otherwise be credited to the state severance tax trust fund under the provisions of this section shall be credited to the uranium mill tailings remedial action program fund created in section 39-29-116 (2); except that the amount credited to such fund during the 1994-95 fiscal year shall not exceed five million dollars. Any receipts in excess of five million dollars shall be credited to the state severance tax trust fund.
(c) Notwithstanding any provisions of this section to the contrary, for the 1995-96 and 1996-97 fiscal years, those gross receipts realized from the severance taxes imposed on minerals and mineral fuels which would otherwise be credited to the state severance tax trust fund under the provisions of this section shall be credited to the uranium mill tailings remedial action program fund created in section 39-29-116 (2); except that the amount credited to such fund during the 1995-96 and 1996-97 fiscal years shall not exceed two and one-half million dollars per fiscal year. Any receipts in excess of two and one-half million dollars shall be credited to the state severance tax trust fund.
(5) (a) To assist in the preparation of state budgets, the consensus revenue estimate group shall prepare a quarterly forecast of severance revenues, including price and production volume.
(b) As used in this subsection (5):
(I) Consensus revenue estimate group means the staff of the legislative council appointed pursuant to section 2-3-304, C.R.S., in consultation with the office of state planning and budgeting created in section 24-37-102, C.R.S.
(II) Price insurance contract means a written agreement between the state treasurer and a qualified counterparty relating to a commodity price for crude oil and natural gas based on levels of floor transactions or forward rate transactions executed through standard financial industry mechanisms.
(III) Qualified counterparty means a person whose long-term obligations are rated, at the time a price insurance contract is executed, in one of the two top rating categories of a nationally recognized rating agency.
(IV) Severance revenues means:
(A) The revenues generated from taxes levied pursuant to this article; and
(B) The state share of federal mineral leasing royalties received pursuant to section 34-63-102, C.R.S.
(c) Repealed.
(6) and (7) Repealed.
Source: L. 77: Entire article added, p. 1847, � 1, effective January 1, 1978. L. 79: (1)(c)(III), (1)(d)(III), and (2) amended, pp. 1508, 1641, �� 2, 56, effective July 19. L. 81: IP(1) amended and (3) added, p. 1903, � 2, effective June 19. L. 87: (4) added, p. 1469, � 1, effective July 1. L. 88: (4) amended, p. 1346, � 1, effective May 11. L. 89: (4) amended, p. 1516, � 1, effective April 7. L. 90: (4) amended, p. 1748, � 1, effective April 3. L. 91: (4) amended, p. 1951, � 1, effective April 11. L. 92: (4) amended, p. 2237, � 1, effective February 25. L. 93: (4) amended, p. 10, � 1, effective February 16; (4) amended, p. 445, � 1, effective April 19. L. 95: (2.5) added, p. 980, � 3, effective May 25. L. 2007: (5) added, p. 1900, � 1, effective June 1. L. 2012: (2) amended, (HB 12-1315), ch. 224, p. 978, � 45, effective July 1. L. 2015: (2)(a)(I) amended and (2)(c) added, (SB 15-255), ch. 138, p. 419, � 1, effective May 1. L. 2016: (2)(a)(II) amended, (SB 16-218), ch. 289, p. 1173, � 4, effective June 10. L. 2021: (6) added, (SB 21-281), ch. 255, p. 1494, � 3, effective June 18; (2)(b) amended and (2)(d) added, (HB 21-1312), ch. 299, p. 1798, � 13, effective July 1. L. 2022: (7) added, (HB 22-1391), ch. 401, p. 2857, � 3, effective August 10. L. 2023: (2)(b), (7)(a)(II), (7)(a)(III), (7)(b), (7)(d), and (7)(e) amended and (2)(e), (7)(a)(IV), and (7)(f) added, (HB 23-1272), ch. 167, p. 809, � 14, effective May 11; (3) repealed, (HB 23-1121), ch. 35, p. 124, � 7, effective August 7. L. 2024: (2)(e)(II), (2)(e)(III)(A), and (2)(e)(III)(C) repealed, (SB 24-214), ch. 191, p. 1106, � 20, effective May 17; IP(1) and (2)(e)(III)(A) amended, (HB 24-1450), ch. 490, p. 3427, � 87, effective August 7. L. 2025: (2)(e)(I) amended and (2)(e)(IV) added, (SB 25-307), ch. 382, p. 2124, � 2, effective June 3; (2)(e)(I) and (2)(e)(III)(B) amended, (SB 25-040), ch. 193, p. 863, � 4, effective August 6.
Editor's note: (1) Subsection (2.5)(b) provided for the repeal of subsection (2.5), effective June 30, 1999. (See L. 95, p. 980.)
(2) Subsection (5)(c)(II) provided for the repeal of subsection (5)(c), effective July 1, 2008. (See L. 2007, p. 1900.)
(3) (a) Subsection (2)(a)(II) provided for the repeal of subsection (2)(a), effective July 1, 2017. (See L. 2016, p. 1173.)
(b) Subsection (2)(c)(II) provided for the repeal of subsection (2)(c), effective January 1, 2017. (See L. 2015, p. 419.)
(4) Subsection (6)(d) provided for the repeal of subsection (6), effective July 1, 2022. (See L. 2021, p. 1494.)
(5) Subsection (2)(e)(III)(A) was amended in HB 24-1450, effective August 7, 2024. Those amendments were superseded by the repeal of subsection (2)(e)(III)(A) in SB 24-214, effective May 17, 2024.
(6) Subsection (7)(f) provided for the repeal of subsection (7), effective July 1, 2025. (See L. 2023, p. 809.)
(7) Amendments to subsection (2)(e)(I) by SB 25-040 and SB 25-307 were harmonized.
Cross references: (1) For the legislative declaration contained in the 1995 act enacting subsection (2.5), see section 1 of chapter 202, Session Laws of Colorado 1995.
(2) For the legislative declaration in SB 21-281, see section 1 of chapter 255, Session Laws of Colorado 2021. For the legislative declaration in HB 21-1312, see section 1 of chapter 299, Session Laws of Colorado 2021. For the legislative declaration in HB 22-1391, see section 1 of chapter 401, Session Laws of Colorado 2022. For the legislative declaration in HB 23-1272, see section 1 of chapter 167, Session Laws of Colorado 2023. For the legislative declaration in SB 25-040, see section 1 of chapter 193, Session Laws of Colorado 2025.
39-29-108.5. Credit of state share to capital construction fund - repayment. (Repealed)
Source: L. 83: Entire section added, p. 2099, � 13, effective October 13. L. 84: (2) amended, p. 735, � 2, effective April 30. L. 85: (2) amended, p. 1268, � 8, effective May 30. L. 86, 2nd Ex. Sess.: (2) amended, p. 72, � 3, effective August 14. L. 2002: Entire section repealed, p. 1006, � 2, effective August 7.
39-29-109. Severance tax trust fund - created - administration - distribution of money - legislative declaration - repeal. (1) There is hereby created in the state treasury the severance tax trust fund, also referred to in this section as the fund, which the department of natural resources shall administer. The fund is to be perpetual and held in trust as a replacement for depleted natural resources, for the development and conservation of the state's water resources pursuant to sections 37-60-106 (1)(j) and (1)(l), 37-60-119, and 37-60-122, C.R.S., for the use in funding programs that promote and encourage sound natural resource planning, management, and development related to minerals, energy, geology, and water and for the use in funding programs to reduce the burden of increasing home energy costs on low-income households.
(2) State severance tax receipts must be credited to the severance tax trust fund as provided in section 39-29-108. All income derived from the deposit and investment of the money in the fund must be credited to the fund. At the end of any fiscal year, all unexpended and unencumbered money in the fund remains in the fund and must not be credited or transferred to the general fund or any other fund. All money in the fund is subject to appropriation by the general assembly for the following purposes:
(a) The severance tax perpetual base fund. (I) Repealed.
(I.5) There is hereby created in the state treasury the severance tax perpetual base fund, also referred to in this subsection (2)(a) as the fund, which the Colorado water conservation board, also referred to in this subsection (2)(a) as the board, shall administer. The state treasurer shall transfer money to the fund from the severance tax trust fund, as specified in this section. The fund also includes any money that the general assembly may appropriate or transfer thereto. The money in the fund is continuously appropriated to the board for purposes authorized by this subsection (2)(a).
(II) One-half of the severance tax receipts credited to the fund for fiscal years commencing on or after July 1, 2009, shall be credited to the severance tax perpetual base fund and used as specified in subsection (2)(a)(II.5) of this section; except that the total amount of severance tax receipts credited to the severance tax perpetual base fund during the fiscal year shall not exceed fifty million dollars unless the cap established in subsection (2)(a)(III) of this section is exceeded. The authorization and contract for each project must require repayment of principal and interest to the fund, and money repaid is credited to the severance tax perpetual base fund.
(II.5) The board shall use the money in the fund:
(A) For state water projects pursuant to sections 37-60-119 and 37-60-122;
(B) To direct the state treasurer to transfer amounts to the water supply reserve fund created in subsection (2)(c) of this section; and
(C) To direct the state treasurer to transfer amounts to the interbasin compact committee operation fund created in section 37-75-107.
(D) Repealed.
(III) For fiscal years commencing on or after July 1, 2009, the state treasurer shall transfer the moneys credited to the fund that are not credited to either the severance tax perpetual base fund or the severance tax operational fund to the small communities water and wastewater grant fund created in section 25-1.5-208 (4), C.R.S.; except that the maximum amount of moneys annually credited to the small communities water and wastewater grant fund shall not exceed ten million dollars.
(IV) to (XIII) Repealed.
(XIV) Notwithstanding any provision of this paragraph (a) to the contrary, on July 1, 2015, the state treasurer shall transfer five hundred thousand dollars from the fund to the Colorado water conservation board construction fund, created in section 37-60-121 (1)(a), C.R.S., for use by the Colorado water conservation board, created in section 37-60-102, C.R.S., to continue the watershed restoration program.
(XV) and (XVI) Repealed.
(XVII) Notwithstanding any provision of this paragraph (a) to the contrary, an amount equal to nineteen million one hundred thousand dollars in the fund is restricted from being used for any purpose whatsoever, until such time that the joint budget committee, by a majority vote, releases the restriction on some or all of the money.
(XVIII) Notwithstanding any provision of this subsection (2)(a) to the contrary, on June 30, 2018, the state treasurer shall transfer eleven million four hundred twenty-five thousand dollars from the fund to the general fund.
(XIX) to (XXI) Repealed.
(XXII) (A) Notwithstanding any other provision of this subsection (2)(a) to the contrary, on July 1, 2020, the state treasurer shall transfer forty-five million five hundred thousand dollars from the fund to the general fund.
(B) The general assembly hereby declares that the transfer specified in subsection (2)(a)(XXII)(A) of this section is necessary as a result of the precipitous decrease in general fund revenues and that it is the intent of the general assembly to transfer an equal amount back to the fund as soon as possible.
(XXIII) Repealed.
(b) The severance tax operational fund. (I) There is hereby created in the state treasury the severance tax operational fund, also referred to in this subsection (2)(b) as the fund, which the department of natural resources shall administer. The state treasurer shall transfer one-half of the severance tax receipts credited to the severance tax trust fund for tax years commencing on and after July 1, 1995, to the fund. Money in the fund shall be distributed as set forth in section 39-29-109.3.
(II) Repealed.
(III) The fund also includes amounts that were transferred to natural resources and energy grant programs under section 39-29-109.3 and that were transferred back to the fund in accordance with subsection (2)(c)(V) of this section and sections 24-33-111 (2)(a)(I)(C) and 37-75-107 (3).
(c) The water supply reserve fund. (I) There is created in the office of the state treasurer the water supply reserve fund, referred to in this subsection (2)(c) as the fund, administered by the Colorado water conservation board. The state treasurer shall transfer money to the fund from the severance tax operational fund as specified in subsection (2)(a)(II.5)(B) of this section. The fund also includes any other money that the general assembly may appropriate or transfer to the fund. The money in the fund is continuously appropriated, for purposes authorized by this subsection (2)(c), to the Colorado water conservation board, referred to in this subsection (2)(c) as the board. The statewide account of the fund is created. Repayments of both the principal and interest on loans from the fund must be credited to the fund. Any balance remaining in the fund at the end of any fiscal year remains in the fund. The board shall allocate money by grant or loan from the fund only for water activities approved by a roundtable pursuant to article 75 of title 37. The approving roundtable is the roundtable for the basin in which a proposed water diversion or nonstructural activity would occur. If the applicant is a covered entity, as defined in section 37-60-126, the board shall allocate money by grant or loan from the fund only if the applicant has adopted a water conservation plan, as defined in section 37-60-126. The board, in consultation with the interbasin compact committee created in section 37-75-105, shall establish criteria and guidelines for allocating money from the fund, including criteria that ensure that the allocations will assist in meeting water supply needs identified pursuant to section 37-75-104 (2)(c), in a manner consistent with section 37-75-102, and facilitate both structural and nonstructural projects or methods. Eligible water activities include:
(A) Competitive grants for environmental compliance and feasibility studies;
(B) Technical assistance regarding permitting, feasibility studies, and environmental compliance;
(C) Studies or analyses of structural, nonstructural, consumptive, and nonconsumptive water needs, projects, or activities; and
(D) Structural and nonstructural water projects or activities.
(I.5) (A) For state fiscal years commencing on or before July 1, 2024, and on or after July 1, 2026, the state treasurer shall credit all interest and income derived from the fund to the statewide account of the fund created in subsection (2)(c)(I) of this section.
(B) For the state fiscal year commencing on July 1, 2025, in accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the fund to the general fund.
(C) On June 30, 2025, the state treasurer shall transfer one million one hundred thirty-seven thousand nine hundred eighty-seven dollars from the fund to the general fund. This subsection (2)(c)(I.5)(C) is repealed, effective July 1, 2026.
(II) On or before October 31 of each year, commencing with the year 2010, the board shall consult with the interbasin compact committee to produce the annual report required by section 37-75-105 (4), C.R.S., regarding how moneys in the fund were allocated in the previous twelve-month period.
(III) and (IV) Repealed.
(V) On April 30, 2021, the state treasurer shall transfer three million nine hundred ninety-six thousand four hundred ten dollars from the fund to the severance tax operational fund created in subsection (2)(b)(I) of this section.
(VI) Repealed.
Source: L. 77: Entire article added, p. 1848, � 1, effective January 1, 1978. L. 79: (1) amended, p. 1508, � 1, effective July 19. L. 83: (3) added, p. 1522, � 9, effective March 22. L. 85: (1) amended, p. 1268, � 9, effective May 30; (4) added, p. 1289, � 1, effective June 6. L. 86, 2nd Ex. Sess.: (1)(b) amended, p. 72, � 4, effective August 14. L. 87: (3) amended, p. 1109, � 5, effective April 22. L. 88: (4) amended, p. 1347, � 1, effective May 17. L. 89: (4) repealed, p. 1517, � 1, effective July 1. L. 90: (5) added, p. 1750, � 2, effective May 2. L. 93: (5) repealed, p. 446, � 2, effective April 19. L. 96: (1) and (3) amended, p. 997, � 1, effective May 23. L. 99: IP(1)(a) amended, p. 926, � 5, effective May 24. L. 2000: (1)(d) added, p. 554, � 1, effective May 16; (1)(c)(I)(D) amended, p. 1750, � 17, effective June 1. L. 2001: (1)(e) added, p. 1, � 1, effective January 17; (1)(c)(I)(D) amended, p. 690, � 26, effective May 30. L. 2002: (1)(f) added, p. 158, � 19, effective March 27; (1)(c)(III) added, p. 307, � 1, effective April 18. L. 2003: (1)(g) added, p. 458, � 19, effective March 5; (1)(h) added, p. 1544, � 7, effective May 1. L. 2004: (1)(i) added, p. 362, � 5, effective April 7. L. 2005: (6) added, p. 413, � 2, effective April 28; (1)(j) added, p. 485, � 1, effective May 5; (1)(c)(III) amended, p. 1483, � 2, effective June 7; (1)(c)(I)(C) amended, p. 692, � 2, effective July 1. L. 2006: (1.5) added, p. 1, � 1, effective February 3; (1)(k) added, p. 1048, � 3, effective May 25; (7) added, p. 1140, � 2, effective May 25; (1)(c)(I)(D) and (1)(c)(III)(A) amended, p. 1283, � 5, effective May 26; (1)(a)(IV) added, p. 1648, � 1, effective June 5; (1)(m), (8), and (8.5) added, pp.1744, 1738, �� 5, 1, effective June 6; (1)(a)(III) added, p. 1227, � 1, effective July 1; (1)(a)(II) and (1)(c)(I)(C) amended, p. 218, � 17, effective August 7; (1)(l) added, p. 1346, � 2, effective August 7. L. 2007: (8)(a) amended, p. 490, � 1, effective April 16; (1.5)(h)(VI) amended and (1.5)(h)(VII) added, p. 1364, � 4, effective May 29; IP(1)(a) amended, p. 1408, � 3, effective May 30; (1)(k)(III) and (1)(l)(IV) amended and (1)(k)(IV), (1)(k)(V), (1)(k)(VI), and (1)(k)(VII) added, pp. 1595, 1594, �� 4, 3, effective May 31; (7) amended, p. 1549, � 1, effective May 31; IP(1)(a)(III) amended, p. 1887, � 1, effective June 1; (1)(c)(III)(B) amended, p. 2049, � 98, effective June 1; (1)(c)(III)(B) amended and (1)(c)(III)(C) added, p. 1892, � 3, effective June 1. L. 2008: (1.5)(b)(II), (1.5)(c)(II), (1.5)(d)(I)(B), (1.5)(e)(I)(B), IP(1.5)(h)(I), IP(1.5)(h)(III), (1.5)(h)(IV), IP(1.5)(h)(V), (1.5)(h)(VI), (1.5)(h)(VII), (1.5)(i)(IV), and (8)(a) amended, p. 72, � 13, effective March 18; (1) amended, p. 1336, � 11, effective May 27; entire section R&RE, p. 1861, � 1, effective June 2. L. 2009: (2)(a) amended, (SB 09-208), ch. 149, p. 628, � 34, effective April 20; (2)(a) amended, (SB 09-165), ch. 183, p. 804, � 2, effective April 22; (2)(a)(I)(C), (2)(a)(IV), and (2)(a)(V) added, (SB 09-279), ch. 367, p. 1931, � 22, effective June 1; (2)(c) amended, (SB 09-106), ch. 386, p. 2089, � 1, effective July 1. L. 2010: (2)(a)(VI) added, (HB 10-1327), ch. 135, p. 451, � 8, effective April 15; (2)(a)(VII) added, (HB 10-1388), ch. 362, p. 1716, � 2, effective June 7; (2)(a)(VIII) added, (HB 10-1250), ch. 381, p. 1782, � 7, effective June 7. L. 2011: (2)(a)(VII) amended, (SB 11-164), ch. 33, p. 94, � 9, effective March 18; (2)(a)(IX) added, (SB 11-226), ch. 190, p. 734, � 6, effective May 19; (2)(a)(IV), (2)(a)(V), and (2)(a)(VI) repealed, (HB 11-1303), ch. 264, p. 1176, � 96, effective August 10. L. 2012, 1st Ex. Sess.: IP(2), (2)(a)(VIII)(A), and (2)(c), amended and (2)(a)(X) and (2)(a)(XI) added, (SB 12S-002), ch. 1, p. 2420, � 19, effective May 19. L. 2013: (1), (2)(a)(II), (2)(a)(III), (2)(a)(VIII)(D), (2)(a)(XI), (2)(b), and IP(2)(c)(I) amended, (2)(a)(I.5) and (2)(a)(XII) added, and (2)(a)(VII) and (2)(a)(IX) repealed, (SB 13-181), ch. 209, p. 868, � 16, effective May 13. L. 2014: (2)(a)(VIII)(B) and (2)(a)(XII)(B) amended and (2)(a)(XIII) added, (HB 14-1333), ch. 356, p. 1660, � 16, effective June 6. L. 2015: (2)(a)(XIV) added, (SB 15-253), ch.192, p. 638, � 14, effective May 14. L. 2016: IP(2) and (2)(a)(XII) amended and (2)(a)(XV) and (2)(a)(XVI) added, (SB 16-174), ch. 163, p. 520, � 16, effective May 16; IP(2) amended and (2)(c)(III) added, (HB 16-1256), ch. 268, p. 1111, � 2, effective June 9; (2)(a)(XVII) added, (SB 16-218), ch. 289, p. 1173, � 5, effective June 10. L. 2017: (2)(a)(XVIII) added, (SB 17-260), ch. 157, p. 536, � 1, effective April 28; (2)(a)(X)(A), (2)(a)(X)(B), (2)(a)(X)(C), (2)(a)(XV), and (2)(a)(XVI) amended and (2)(a)(X)(E), (2)(a)(XIX), and (2)(a)(XX) added, (HB 17-1248), ch. 229, p. 891, � 22, effective May 23. L. 2018: (2)(b) amended and (2)(c)(IV) added, (HB 18-1338), ch. 201, p. 1311, � 14, effective May 4; (2)(a)(XXI) added, (SB 18-218), ch. 336, p. 2016, � 15, effective May 30. L. 2019: (2)(a)(XVI) amended, (SB 19-212), ch. 121, p. 526, � 4, effective April 17; IP(2) and (2)(a)(XVI) amended, (SB 19-221), ch. 417, p. 3669, � 15, effective June 3. L. 2020: (2)(a)(XXII) added, (HB 20-1381), ch. 171, p. 786, � 8, effective June 29; IP(2) and IP(2)(c)(I) amended and (2)(c)(III) repealed, (SB 20-136), ch. 70, p. 297, � 50, effective September 14. L. 2021: (2)(b)(III) and (2)(c)(V) added, (SB 21-220), ch. 81, p. 310, � 5, effective April 30; (2)(a)(I.5), (2)(a)(II), and IP(2)(c)(I) amended and (2)(a)(II.5) added, (SB 21-281), ch. 255, p. 1494, � 4, effective June 18; (2)(c)(VI) added, (HB 21-1260), ch. 331, p. 2141, � 4, effective June 24. L. 2023: (2)(b)(III) amended, (HB 23-1301), ch. 303, p. 1844, � 88, effective August 7. L. 2024: (2)(a)(XXIII) added, (HB 24-1413), ch. 228, p. 1405, � 2, effective May 22. L. 2025: (2)(a)(II.5)(B), (2)(a)(II.5)(C), and (2)(b)(III) amended and (2)(a)(II.5)(D) repealed, (SB 25-283), ch. 199, p. 885, � 21, effective May 15; IP(2)(c)(I) amended and (2)(c)(I.5) added, (SB 25-317), ch. 385, p. 2164, � 48, effective June 3.
Editor's note: (1) Subsection (1)(d)(II) provided for the repeal of subsection (1)(d), effective July 1, 2001. (See L. 2000, p. 554.)
(2) Subsection (1)(e)(II) provided for the repeal of subsection (1)(e), effective July 1, 2002. (See L. 2001, p. 1.)
(3) Subsection (1)(j)(II) provided for the repeal of subsection (1)(j), effective July 1, 2006. (See L. 2005, p. 485.)
(4) Subsection (1)(a)(IV) was originally numbered as (1)(a)(III) in House Bill 06-1393 but was renumbered on revision for ease of location.
(5) Amendments to subsection (1)(c)(III)(B) by House Bill 07-1367 and Senate Bill 07-008 were harmonized.
(6) Subsection (1)(k)(III) provided for the repeal of subsections (1)(k)(I) and (1)(k)(II), effective July 1, 2007. (See L. 2007, p. 1595.)
(7) Subsection (6)(d) provided for the repeal of subsection (6), effective July 1, 2007. (See L. 2005, p. 413.)
(8) Subsections (1.5)(b)(II), (1.5)(c)(II), (1.5)(d)(I)(B), (1.5)(e)(I)(B), the introductory portions to subsections (1.5)(h)(I) and (1.5)(h)(III), subsection (1.5)(h)(IV), the introductory portion to subsection (1.5)(h)(V), and subsections (1.5)(h)(VI), (1.5)(h)(VII), (1.5)(i)(IV), and (8)(a) were amended in House Bill 08-1025. Those amendments were superseded by the repeal and reenactment of the section in House Bill 08-1398.
(9) (a) Amendments to subsection (2)(a) by Senate Bill 09-165 and Senate Bill 09-279 were harmonized. Subsection (2)(a)(I)(C) was numbered as subsection (2)(a)(III) in Senate Bill 09-279 but was renumbered as a result of the harmonization. (See L. 2009, p. 1931).
(b) Subsection (2)(a)(I)(C) from Senate Bill 09-165 was renumbered as subsection (2)(a)(I)(D) as a result of the harmonization of Senate Bill 09-165 and Senate Bill 09-279. (See L. 2009, p. 804.)
(10) Subsection (2)(a)(I)(D) provided for the repeal of subsection (2)(a)(I), effective July 1, 2009. (See L. 2009, p. 804.)
(11) Subsection (2)(a)(VIII)(E) provided for the repeal of subsection (2)(a)(VIII), effective July 1, 2015. (See L. 2010, p. 1782.)
(12) Subsection (2)(a)(XI)(B) provided for the repeal of subsection (2)(a)(XI), effective July 1, 2016. (See L. 2013, p. 868.)
(13) Subsection (2)(a)(XIII)(B) provided for the repeal of subsection (2)(a)(XIII), effective September 1, 2016. (See L. 2014, p.1660.)
(14) Amendments to subsection IP(2) by HB 16-1256 and SB 16-174 were harmonized.
(15) Subsection (2)(b)(IV)(B) provided for the repeal of subsection (2)(b)(IV), effective July 1, 2018. (See L. 2018, p. 1311.)
(16) (a) Subsection (2)(a)(X)(E) provided for the repeal of subsection (2)(a)(X), effective September 1, 2018. (See L. 2017, p. 891.)
(b) Subsection (2)(a)(XV)(B) provided for the repeal of subsection (2)(a)(XV), effective September 1, 2018. (See L. 2017, p. 891.)
(c) Subsection (2)(a)(XIX)(B) provided for the repeal of subsection (2)(a)(XIX), effective September 1, 2018. (See L. 2017, p. 891.)
(d) Subsection (2)(a)(XX)(C) provided for the repeal of subsection (2)(a)(XX), effective September 1, 2018. (See L. 2017, p. 891.)
(17) Subsection (2)(b)(II)(C) provided for the repeal of subsection (2)(b)(II), effective July 1, 2019. (See L. 2018, p. 1311.)
(18) Amendments to subsection (2)(a)(XVI) by SB 19-212 and SB 19-221 were harmonized.
(19) Subsection (2)(a)(XII)(B) provided for the repeal of subsection (2)(a)(XII), effective July 1, 2020. (See L. 2016, p. 520.)
(20) Subsection (2)(a)(XVI)(B) provided for the repeal of subsection (2)(a)(XVI), effective September 1, 2020. (See L. 2019, p. 3669.)
(21) Subsection (2)(a)(XXI)(B) provided for the repeal of subsection (2)(a)(XXI), effective September 1, 2020. (See L. 2018, p. 2016.)
(22) (a) Subsection (2)(a)(XXIII)(B) provided for the repeal of subsection (2)(a)(XXIII), effective June 30, 2025. (See L. 2024, p. 1405.)
(b) Subsection (2)(c)(VI)(B) provided for the repeal of subsection (2)(c)(VI), effective September 1, 2025. (See L. 2021, p. 2141.)
Cross references: (1) For the legislative declaration in SB 07-246, see section 1 of chapter 321, Session Laws of Colorado 2007.
(2) For the legislative declaration in SB 20-136, see section 1 of chapter 70, Session Laws of Colorado 2020.
(3) For the legislative declaration in SB 21-281, see section 1 of chapter 255, Session Laws of Colorado 2021. For the legislative declaration in HB 21-1260, see section 1 of chapter 331, Session Laws of Colorado 2021.
(4) For the legislative declaration in SB 25-317, see section 1 of chapter 385, Session Laws of Colorado 2025.
39-29-109.3. Severance tax operational fund - core reserve - grant program reserve - definitions - repeal. (1) The executive director of the department of natural resources shall submit with the department's budget request for each fiscal year a list and description of the programs the executive director recommends to be funded from the severance tax operational fund created in section 39-29-109 (2)(b), referred to in this section as the operational fund. Except as otherwise provided in subsections (10) and (12) of this section, the general assembly may appropriate money from the total money available in the operational fund to fund recommended programs as follows:
(a) (I) For programs or projects within the energy and carbon management commission created in section 34-60-104.3 (1), up to thirty-five percent of the money in the operational fund for fiscal years commencing on or after July 1, 2009.
(II) Money appropriated for programs or projects pursuant to subsection (1)(a)(I) of this section shall be used by the energy and carbon management commission for plugging and abandonment projects, for well-site location reclamation projects, or for regulatory and environmental programs or projects as specifically appropriated by the general assembly for use on such programs or projects; except that, if the commission determines that an emergency exists, the commission may expend any money received for the emergency without any further appropriation. In determining the uses of this money, the commission shall give priority to uses that reduce industry fees and mill levies.
(b) For programs within the Colorado geological survey, up to fifteen percent of the moneys in the operational fund;
(b.5) For the avalanche information center, up to five percent of the moneys in the operational fund;
(c) For programs within the division of reclamation, mining, and safety, up to thirty percent of the money in the operational fund for fiscal years commencing before July 1, 2008, and up to twenty-five percent of the money in the operational fund for fiscal years commencing on or after July 1, 2008;
(d) For programs within the Colorado water conservation board and for purposes authorized by article 75 of title 37, C.R.S., up to five percent of the moneys in the operational fund;
(e) For fiscal years commencing on or after July 1, 2008, only, for programs within the division of parks and wildlife that monitor, manage, or mitigate the impacts of mineral or mineral fuel production activities on wildlife in any region of the state in which production activity is occurring or, from any location in the state, research such impacts, up to five percent of the moneys in the operational fund, which moneys shall not supplant moneys that would otherwise be made available for such programs;
(f) For fiscal years commencing on or after July 1, 2009, for programs within the division of parks and wildlife that operate, maintain, or improve state parks in any region of the state in which production activity is occurring, up to ten percent of the moneys in the operational fund.
(g) If the general assembly appropriates less than one hundred percent of the money available in the operational fund for the purposes set forth in subsections (1)(a) to (1)(f) of this section, then the general assembly may additionally appropriate:
(I) Up to five million dollars to the species conservation trust fund created in section 24-33-111 (2)(a);
(II) Up to four million six thousand five dollars from the operational fund to the division of parks and wildlife aquatic nuisance species fund created in section 33-10.5-108 (1);
(III) Through the 2023-24 state fiscal year, up to four hundred fifty thousand dollars, and for the 2024-25 state fiscal year and each state fiscal year thereafter, up to seven hundred thousand dollars to the conservation district grant fund created in section 35-1-106.7;
(IV) For the 2022-23 state fiscal year, up to ten million dollars to the wildfire mitigation capacity development fund created in section 24-33-117 (1); and
(V) For the 2023-24 state fiscal year and each state fiscal year thereafter, up to five million dollars to the wildfire mitigation capacity development fund created in section 24-33-117 (1).
(1.5) On June 30, 2021, and July 1, 2022, the state treasurer shall transfer nine million four hundred fifty-six thousand five dollars from the general fund to the operational fund.
(1.7) and (2) Repealed.
(3) (a) It is the intent of the general assembly that the operational fund maintain a reserve equal to two times the current state fiscal year's appropriations made from the operational fund, but if severance tax revenues are less than anticipated, then money in the reserve is available to be used for expenditures authorized by the appropriations.
(b) and (c) Repealed.
(3.5) (a) Repealed.
(b) If at the end of a fiscal year the reserve for the operational fund specified in subsection (3)(a) of this section is full, then, on August 15 following the end of the fiscal year, the state treasurer shall transfer the remainder to the severance tax perpetual base fund created in section 39-29-109 (2)(a).
(c) Repealed.
(4) to (8) Repealed.
(9) On June 30, 2023, the state treasurer shall transfer twelve million six hundred thousand dollars from the operational fund to the water plan implementation cash fund created in section 37-60-123.3.
(10) (a) On July 1, 2023, the state treasurer shall transfer ten million dollars from the operational fund to the capital construction fund created in section 24-75-302 (1)(a) for use by state-supported institutions of higher education in energy impacted counties for energy-related programs or projects.
(b) This subsection (10) is repealed, effective July 1, 2026.
(11) (a) On June 30, 2025, the state treasurer shall transfer eighteen million two hundred fifty-nine thousand eight hundred five dollars from the fund to the general fund.
(b) This subsection (11) is repealed, effective June 30, 2026.
(12) (a) On July 1, 2024, the state treasurer shall transfer seven hundred forty-eight thousand dollars from the operational fund to the clean water cash fund created in section 25-8-210 (4) for use by the department of public health and environment in administering the program described in section 25-8-205.1.
(b) This subsection (12) is repealed, effective July 1, 2027.
Source: L. 2008: Entire section added, p. 1863, � 2, effective June 2; (2)(j) added, p. 978, � 3, effective May 21; (2)(f) and IP(4)(a) amended and (4)(c) added, pp. 1328, 1336, �� 3, 10, effective May 27; (2)(k) added, p. 1535, � 5, effective May 28; (2)(d)(I)(A) and (2)(e)(I)(A) amended, p. 1581, � 6, effective May 29; (2)(d)(I)(A) and (2)(e)(I)(A) amended and (2)(m) added, p. 1591, �� 9, 8, effective May 29; (2)(l) added, p. 1576, � 33, effective May 29; (1) amended, p. 1689, � 2, effective June 2. L. 2009: (2)(a)(I)(A), (2)(a)(I)(B), (2)(c)(I)(B), (2)(d)(II)(A), (2)(e)(II)(A), (2)(f)(II)(A), (2)(n)(I)(A), and (2)(n)(II) amended and (2)(f)(V) added, (SB 09-293), ch. 370, pp. 2008, 2010, �� 1, 3, effective June 1; (2)(i) amended, (SB 09-125), ch. 328, p. 1751, � 22, effective June 1; (2)(n) added, (HB 09-1199), ch. 411, p. 2277, � 2, effective June 3; (2)(a) amended, (SB 09-106), ch. 386, p. 2090, � 2, effective July 1; (2)(h) amended, (SB 09-124), ch. 256, p. 1162, � 2, effective July 1. L. 2010: (2)(f)(III)(A) and (2)(f)(IV)(A) amended, (HB 10-1319), ch. 28, p. 103, � 1, effective March 18; (1)(a)(I), (1)(f), (2)(a)(I)(C), (2)(a)(I)(D) amended and (2)(a)(I)(E) added, (HB 10-1326), ch. 36, pp. 140, 141, �� 1, 2, effective March 22; (6) added, (HB 10-1327), ch. 135, p. 451, � 9, effective April 15; (2)(c)(I)(A) and (2)(c)(III) amended, (SB 10-025), ch. 379, p. 1775, � 2, effective June 7; (2)(d)(IV)(A) amended and (2)(d)(V), (2)(d)(VI), (2)(e)(IV), (2)(e)(V), and (2)(e)(VI) added, (HB 10-1398), ch. 380, pp. 1777, 1778, �� 4, 5, effective June 7. L. 2011: (2)(b)(IV) added, (HB 11-1156), ch. 134, p. 471, � 2, effective May 4; (6) amended, (SB 11-226), ch. 190, p. 735, � 7, effective May 19; (2)(e)(IV)(A), (2)(e)(V)(A), and (2)(e)(VI)(A) amended, (SB 11-203), ch. 231, p. 989, � 3, effective May 27. L. 2012: (2)(f)(V) amended, (HB 12-1028), ch. 60, p. 217, � 1, effective March 24; (2)(k) and (2)(n) amended, (HB 12-1032), ch. 69, p. 239, � 4, effective March 24; (3), (4)(b), and (5) amended, (HB 12-1353), ch. 221, p. 947, � 1, effective May 24; IP(2)(d), (2)(d)(III), (2)(d)(IV), (2)(d)(V), and (2)(d)(VI) repealed and IP(2)(e), (2)(e)(V)(A), and (2)(e)(VI)(A) amended, (HB 12-1349), ch. 282, p. 1635, � 4, effective June 8; (2)(f)(V)(A) and (4)(c)(I)(A) amended, (HB 12-1315), ch. 224, p. 978, � 46, effective July 1; (2)(h) amended, (HB 12-1334), ch. 219, p. 938, � 2, effective July 1. L. 2012, 1st Ex. Sess.: IP(2)(a)(I) amended, (SB 12S-002), ch. 1, p. 2422, � 20, effective May 19. L. 2013: (1)(b) amended and (1)(b.5) added, (HB 13-1057), ch. 1, p. 3, � 7, effective January 31; (4)(c) amended, (HB 13-1185), ch. 76, p. 244, � 1, effective March 22; IP(1), (1)(a)(I), (1)(b), (1)(c), (1)(d), (1)(e), (1)(f), IP(2), (3)(a), (4)(b), and (5) amended and (6) repealed, (SB 13-181), ch. 209, p. 874, � 26, effective May 13; (2)(e)(VI)(A) amended, (HB 13-1283), ch. 378, p. 2220, � 3, effective June 5; IP(1) amended, (HB 13-1139), ch. 120, p. 409, � 10, effective August 7. L. 2014: (2)(e)(VII), (2)(e)(VIII), (2)(e)(IX), (2)(e)(X), and (2)(e)(XI) added, (SB 14-188), ch. 219, p. 821, � 3, effective May 17; IP(2)(n)(I) and (2)(n)(I)(A) amended and (2)(n)(I)(C) amended, (SB 14-154), ch. 313, p. 1357, � 4, effective May 31. L. 2015: (2)(o) added, (HB 15-1150), ch. 56, p. 135, � 1, effective March 30; (2)(p) added, (SB 15-022), ch. 183, p. 600, � 4, effective May 12; (2)(q) and (2)(r) added, (SB 15-253), ch. 192, p. 637, � 13, effective May 14; (2)(s) added, (HB 15-1006), ch. 185, p. 605, � 2, effective August 5. L. 2016: (1.5) added, (SB 16-218), ch. 289, p. 1174, � 6, effective June 10; (3)(c) added, (SB 16-167), ch. 279, p. 1147, � 1, effective June 10. L. 2017: (1.7) added, (SB 17-260), ch. 157, p. 536, � 2, effective April 28; IP(2), (2)(k), and (2)(n) amended, (SB 17-050), ch. 34, p. 98, � 3, effective July 1; IP(2)(f) and (2)(f)(V) amended, (HB 17-1116), ch. 393, p. 2024, � 1, effective August 9. L. 2018: (1.5) and (1.7) repealed, IP(2) and IP(4)(a) amended, and (4)(d) and (7) added, (HB 18-1338), ch. 201, p. 1312, � 15, effective May 4; (2)(m) amended, (HB 18-1008), ch. 137, p. 900, � 10, effective August 8. L. 2019: IP(2), (3)(a), and (7)(c) amended, (3.5) and (8) added, and (4) and (5) repealed, (SB 19-016), ch. 68, p. 245, � 1, effective April 1; IP(2) and IP(2)(e) amended and (2)(e)(XII) added, (HB 19-1259), ch. 208, p. 2207, � 4, effective May 17. L. 2020: IP(1) and (1)(c) amended and (2)(o) repealed, (HB 20-1372), ch. 166, p. 765, � 2, effective July 1. L. 2021: IP(1), (3)(a), and (3.5)(b) amended, (1)(g) added, (1.5) RC&RE, and (2), (3.5)(a), (7), and (8) repealed, (SB 21-281), ch. 255, p. 1496, � 5, effective June 18; (2)(c) RC&RE, (SB 21-189), ch. 333, p. 2149, � 7, effective June 24; (2)(t) added, (HB 21-1242), ch. 332, p. 2145, � 3, effective June 24; (2)(c) and (2)(t) repealed, (SB 21-281), ch. 255, p. 1500, �� 6, 7, effective June 24; (2)(f) repealed, (HB 21-1105), ch. 488, p. 3495, � 2, effective September 7. L. 2023: (1)(g)(II) amended and (1)(g)(IV) and (1)(g)(V) added, (SB 23-139), ch. 11, p. 32, � 1, effective March 6; (9) added, (SB 23-237), ch. 98, p. 365, � 1, effective April 20; IP(1) amended and (10) added, (SB 23-250), ch. 130, p. 496, � 1, effective April 28; (1)(a) amended, (SB 23-285), ch. 235, p. 1259, � 42, effective July 1. L. 2024: (1)(g)(III) amended and (11) added, (HB 24-1413), ch. 228, p. 1404, � 1, effective May 22; IP(1) amended and (12) added, (HB 24-1379), ch. 274, p. 1824, � 6, effective May 29. L. 2025: (3.5)(b) amended, (SB 25-300), ch. 428, p. 2457, � 60, effective August 6.
Editor's note: (1) Subsection (2)(m) was originally numbered as (2)(i) in Senate Bill 08-226 but has been renumbered on revision for ease of location.
(2) Amendments to subsection (2)(a) by Senate Bill 09-106 and Senate Bill 09-293 were harmonized.
(3) (a) Subsections (2)(a)(I)(A), (2)(b)(I)(B), (2)(d)(I)(B), (2)(e)(I)(B), and (2)(g)(II) provided for the repeal of subsections (2)(a)(I)(A), (2)(b)(I), (2)(d)(I), (2)(e)(I), and (2)(g), respectively, effective July 1, 2010. (See L. 2008, p. 1863.)
(b) Subsection (2)(f)(I)(D) provided for the repeal of subsection (2)(f)(I), effective July 1, 2010. (See L. 2008, p. 1328.)
(c) Subsection (2)(j)(II) provided for the repeal of subsection (2)(j), effective July 1, 2010. (See L. 2008, p. 978.)
(d) Subsection (2)(l)(II) provided for the repeal of subsection (2)(l), effective July 1, 2010. (See L. 2008, p. 1576.)
(e) Subsection (2)(m)(I)(B) provided for the repeal of subsection (2)(m)(I), effective July 1, 2010. (See L. 2008, p. 1591.)
(f) Subsection (2)(i)(I)(B) provided for the repeal of subsection (2)(i)(I), effective July 1, 2010. (See L. 2009, p. 1751.)
(4) Subsections (2)(a)(I)(B), (2)(b)(II)(B), (2)(d)(II)(B), (2)(e)(II)(B), and (2)(f)(II)(B) provided for the repeal of subsections (2)(a)(I)(B), (2)(b)(II), (2)(d)(II), (2)(e)(II), and (2)(f)(II), respectively, effective July 1, 2011. (See L. 2008, p. 1863.)
(5) Subsections (2)(a)(I)(C), (2)(b)(III)(B), (2)(e)(III)(B), and (2)(f)(III)(B) provided for the repeal of subsections (2)(a)(I)(C), (2)(b)(III), (2)(e)(III), and (2)(f)(III), respectively, effective July 1, 2012. (See L. 2008, p. 1863.)
(6) Amendments to subsection (2)(f)(V)(A) by House Bill 12-1028 and House Bill 12-1315 were harmonized.
(7) Subsection (2)(a)(I)(D) provided for the repeal of said subsection (2)(a)(I)(D), effective July 1, 2013. (See L. 2010, p. 141.) Subsection (2)(e)(IV)(B) provided for the repeal of subsection (2)(e)(IV), effective July 1, 2013. (See L. 2010, p. 1778.) Subsection (2)(f)(IV)(B) provided for the repeal of subsection (2)(f)(IV), effective July 1, 2013. (See L. 2008, p. 1330.)
(8) Amendments to the introductory portion to subsection (1) by House Bill 13-1139 and Senate Bill 13-181 were harmonized. Amendments to subsection (1)(b) by House Bill 13-1057 and Senate Bill 13-181 were harmonized.
(9) Subsection (4)(c)(III)(B) provided for the repeal of subsection (4)(c), effective July 1, 2013. (See L. 2013, p. 244.)
(10) (a) Subsection (2)(e)(V)(B) provided for the repeal of subsection (2)(e)(V), effective July 1, 2014. (See L. 2010, p. 1778.)
(b) Subsection (3)(b)(II) provided for the repeal of subsection (3)(b), effective July 1, 2014. (See L. 2012, p. 947.)
(11) Subsection (2)(e)(VI)(B) provided for the repeal of subsection (2)(e)(VI), effective July 1, 2015. (See L. 2010, p. 1777.)
(12) Subsection (2)(e)(VII)(B) provided for the repeal of subsection (2)(e)(VII), effective July 1, 2016. (See L. 2014, p. 821.)
(13) (a) Subsection (2)(e)(VIII)(B) provided for the repeal of subsection (2)(e)(VIII), effective July 1, 2017. (See L. 2014, p. 821.)
(b) Subsection (2)(p)(II) provided for the repeal of subsection (2)(p), effective July 1, 2017. (See L. 2015, p. 600.)
(c) Subsection (3)(c)(II) provided for the repeal of subsection (3)(c), effective July 1, 2017. (See L. 2016, p. 1147.)
(14) (a) Subsection (2)(e)(IX)(B) provided for the repeal of subsection (2)(e)(IX), effective July 1, 2018. (See L. 2014, p. 821.)
(b) Subsection (2)(h)(II) provided for the repeal of subsection (2)(h), effective July 1, 2018. (See L. 2012, p. 938.)
(c) Subsection (2)(s)(II) provided for the repeal of subsection (2)(s), effective July 1, 2018. (See L. 2015, p. 605.)
(15) Subsection (2)(e)(X)(B) provided for the repeal of subsection (2)(e)(X), effective July 1, 2019. (See L. 2014, p. 821.)
(16) Amendments to subsection IP(2) by SB 19-016 and HB 19-1259 were harmonized.
(17) Subsection (2)(c)(III) provided for the repeal of subsection (2)(c), effective July 1, 2020. (See L. 2010, p. 1775.)
(18) Subsection (2)(e)(XI)(B) provided for the repeal of subsection (2)(e)(XI), effective July 1, 2020. (See L. 2014, p. 821.)
(19) Subsection (3.5)(c)(II) provided for the repeal of subsection (3.5)(c), effective July 1, 2020. (See L. 2019, p. 245.)
(20) Amendments to subsection (2) by SB 21-281 and HB 21-1105 were harmonized.
Cross references: (1) For the legislative declaration contained in the 2008 act amending subsections (2)(d)(I)(A) and (2)(e)(I)(A), see section 1 of chapter 339, Session Laws of Colorado 2008.
(2) For the legislative declaration in the 2011 act amending subsections (2)(e)(IV)(A), (2)(e)(V)(A), and (2)(e)(VI)(A), see section 1 of chapter 231, Session Laws of Colorado 2011.
(3) For the legislative declaration in the 2012 act repealing the introductory portion to subsection (2)(d) and subsections (2)(d)(III), (2)(d)(IV), (2)(d)(V), and (2)(d)(VI) and amending the introductory portion to subsection (2)(e) and subsections (2)(e)(V)(A) and (2)(e)(VI)(A), see section 1 of chapter 282, Session Laws of Colorado 2012.
(4) For the legislative declaration in the 2013 act amending subsection (2)(e)(VI)(A), see section 1 of chapter 378, Session Laws of Colorado 2013.
(5) For the legislative declaration in SB 14-188, see section 1 of chapter 219, Session Laws of Colorado 2014.
(6) For the legislative declaration in HB 19-1259, see section 1 of chapter 208, Session Laws of Colorado 2019.
(7) For the legislative declaration in SB 21-281, see section 1 of chapter 255, Session Laws of Colorado 2021.
39-29-109.5. Interest differential - public school energy efficiency fund - creation - uses - definitions - repeal. (Repealed)
Source: L. 2007: Entire section added, p. 1409, � 4, effective May 30. L. 2008: (1)(a.5) added and (2) and IP(3) amended, pp. 74, 75, �� 14, 15, effective March 18. L. 2009: (3)(c), (3)(d), and (5) amended and (3)(e) added, (HB 09-1312), ch. 253, p. 1145, � 4, effective August 5. L. 2011: (2) amended, (SB 11-230), ch. 305, p. 1468, � 11, effective June 9. L. 2012: (1)(a), (1)(a.5), (2), and IP(3) amended, (HB 12-1315), ch. 224, p. 979, � 47, effective July 1.
Editor's note: Subsection (5) provided for the repeal of this section, effective July 1, 2017. (See L. 2009, p. 1145.)
39-29-110. Local government severance tax fund - creation - administration - definitions - repeal. (1) (a) (I) There is created in the department of local affairs a local government severance tax fund. In accordance with section 39-29-108, portions of the state severance tax receipts must be credited to the local government severance tax fund.
(II) Repealed.
(III) The executive director of the department of local affairs shall distribute any moneys and make loans from such fund in accordance with the purposes and priorities provided in paragraph (b) of this subsection (1).
(b) (I) Seventy percent of the funds in the local government severance tax fund shall be distributed to those political subdivisions socially or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to taxation under this article and used for the planning, construction, and maintenance of public facilities and for the provision of public services. Such funds shall also be distributed to political subdivisions to compensate them for loss of property tax revenue resulting from the deduction of severance taxes paid in the determination of the valuation for assessment of producing mines. The executive director of the department of local affairs shall consider the economic needs of a political subdivision for purposes of making distributions pursuant to this subsection (1)(b)(I). The executive director of the department of local affairs may establish an administrative policy for a preference to just transition coal communities. This preference will be available for a three-year period beginning January 1, 2026.
(II) (A) In addition to the distribution of money authorized under subsection (1)(b)(I) of this section, the executive director may distribute money or make loans, or any combination thereof, to the political subdivisions for the planning, design, construction, erection, building, acquisition, alteration, modernization, reconstruction, improvement, or expansion of domestic wastewater treatment works or potable water treatment facilities. Any loan made by the executive director under the authority of this section shall only be made under such terms as will insure repayment of the loan with interest assessed and collected at an interest rate commensurate with an AA-rated ten-year municipal bond rate averaged over the previous six months, at the time of application.
(B) As used in this subparagraph (II), domestic wastewater treatment works means a system or facility of a political subdivision for treating, neutralizing, stabilizing, collecting, or disposing of domestic wastewater, which system or facility has a designed capacity to receive more than two thousand gallons of domestic wastewater per day, and domestic wastewater treatment works includes appurtenances to such system or facility, such as outfall sewers, pumping stations, and collection and interceptor lines, and the equipment related to such appurtenances.
(C) As used in this subparagraph (II), potable water treatment facilities means a system or facility of a political subdivision for treating water to be supplied to the public for domestic use, and potable water treatment facilities includes water treatment plants, treated water storage facilities, water mains, water distribution lines, pumps, and appurtenances.
(III) In addition to the distribution of moneys authorized under subparagraphs (I) and (II) of this paragraph (b), the executive director shall distribute:
(A) Moneys to the uranium mill tailings remedial action program fund in accordance with the provisions of section 39-29-116 (3);
(B) Moneys to the department of public health and environment for any direct and indirect costs associated with the monitoring, notification, and handling of designated uranium mill tailings that are authorized in section 25-11-303, C.R.S., and the amount of the distribution made pursuant to this sub-subparagraph (B) shall be equal to the amount appropriated to the department of public health and environment by the general assembly for such direct and indirect costs; and
(C) Up to fifty thousand dollars each state fiscal year to political subdivisions that include mill sites designated for cleanup pursuant to federal Public Law 95-604 for reimbursement of actual, documented costs related to the cleanup of uranium mill tailings.
(IV) In addition to the distribution of moneys authorized under subparagraphs (I), (II), and (III) of this paragraph (b), the executive director may distribute moneys to those privately organized volunteer fire departments serving areas socially or economically impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to taxation under this article, for the purpose of purchasing equipment to fight fires.
(V) In addition to the distribution of moneys authorized under subparagraphs (I), (II), (III), and (IV) of this paragraph (b), the executive director of the department of local affairs may distribute moneys for planning, analyses, public engagement, and coordination and collaboration with federal land managers and stakeholders, or for similar or related local government processes needed by local governments for engagement in federal land management decision-making.
(c) (I) For state fiscal years commencing prior to July 1, 2008, an amount equal to thirty percent of said gross receipts credited to the local government severance tax fund shall be distributed to counties or municipalities on the basis of the proportion of employees of the mine or related facility or crude oil, natural gas, or oil and gas operation who reside in any such county's unincorporated area or in any such municipality to the total number of employees of the mine or related facility or crude oil, natural gas, or oil and gas operation. Such distribution shall be made on the basis of the report required in paragraph (d) of this subsection (1). For state fiscal years commencing on or after July 1, 2008, thirty percent of said gross receipts credited to the local government severance tax fund shall be allocated to counties based upon the following factors:
(A) On the basis of the report required in paragraph (d) of this subsection (1), the proportion of employees of mines or related facilities or crude oil, natural gas, or oil and gas operations who reside in a county to the total number of employees of mines or related facilities or crude oil, natural gas, or oil and gas operations who reside in the state;
(B) The proportion of the mine and well permits issued in a county to the total number of such permits issued in the state; and
(C) The proportion of the overall quantity of mineral production within a county to the total overall quantity of production within the state.
(II) (A) For the state fiscal year commencing on July 1, 2008, the factor set forth in sub-subparagraph (A) of subparagraph (I) of this paragraph (c) shall be weighted fifty percent and the factors set forth in sub-subparagraphs (B) and (C) of subparagraph (I) of this paragraph (c) shall be weighted twenty-five percent each.
(B) For state fiscal years commencing on or after July 1, 2009, each of the three factors set forth in subparagraph (I) of this paragraph (c) shall be weighted thirty percent, and the executive director of the department of local affairs, in consultation with the energy impact assistance advisory committee established pursuant to section 34-63-102 (5)(b)(I), C.R.S., shall establish guidelines that set forth the factor or factors under which the remaining ten percent shall be weighted.
(III) Except as otherwise set forth in subparagraph (IV) of this paragraph (c), the moneys allocated to each county pursuant to this paragraph (c) shall be further distributed to the county and to each municipality within the county based upon the following factors:
(A) The proportion of employees reported as residents under paragraph (d) of this subsection (1) in any such county's unincorporated area or in any such municipality within the county to the total number of employees reported as residents in the county as a whole under paragraph (d) of this subsection (1);
(B) The proportion of the population in any such county's unincorporated area or in any such municipality within the county to the total population in the county, as such population is reported in the most recently published population estimate from the state demographer appointed by the executive director of the department of local affairs; and
(C) The proportion of road miles in any such county's unincorporated area or in any such municipality within the county to the total road miles in the county, as such miles are certified by the department of transportation to the state treasurer pursuant to sections 43-4-207 (2)(d) and 43-4-208 (3), C.R.S.
(IV) With respect to the distribution made pursuant to subparagraph (III) of this paragraph (c), the executive director of the department of local affairs, in consultation with the energy impact assistance advisory committee established pursuant to section 34-63-102 (5)(b)(I), C.R.S., shall establish guidelines that set forth the weight that each of the factors in sub-subparagraphs (A) to (C) of subparagraph (III) of this paragraph (c) shall be given. These guidelines shall apply uniformly across the state; except that the executive director may:
(A) Accept a memorandum of understanding from a county and all municipalities contained therein that establishes an alternative distribution that shall be effective within such county; and
(B) After consultation with the energy impact assistance advisory committee established pursuant to section 34-63-102 (5)(b)(I), C.R.S., vary the weight that each of the factors in sub-subparagraphs (A) to (C) of subparagraph (III) of this paragraph (c) receives in an individual county, in order to more fairly distribute the gross receipts among the county and all municipalities contained therein.
(V) Moneys distributed from the local government severance tax fund pursuant to this paragraph (c) shall be distributed no later than August 31 of each year. Counties and municipalities shall utilize revenues received under this subsection (1) only for the purposes of capital expenses and general operating expenses.
(VI) On or before January 1, 2010, and every second January 1 thereafter, the executive director of the department of local affairs shall submit to each member of the general assembly a report that evaluates the effectiveness of the allocation and distribution of moneys pursuant to this paragraph (c) to counties and municipalities impacted by the development, processing, or energy conversion of minerals and mineral fuels subject to taxation under this article, and, if appropriate, that proposes changes to the allocation and distribution. The provisions of section 24-1-136 (11)(a)(I), C.R.S., shall not apply to the report.
(c.5) (Deleted by amendment, L. 2008, p. 1680, � 6, effective August 5, 2008.)
(d) (I) (A) Ninety days prior to the end of each fiscal year, for each taxable year to which this sub-subparagraph (A) applies, the executive director of the department of revenue shall send every producer who is subject to the severance tax and whose payment is subject to the distribution formula provided in this subsection (1) a form on which the producer shall submit a report to the department of revenue indicating the following: The name and address of the producer, the name of the mine, related facility, or operation, the names of the municipalities or counties in which its employees maintain their actual residences as given by the employees, giving the number of employees for each such municipality or unincorporated area of each such county, and the total number of employees of the mine or related facility or crude oil, natural gas, or oil and gas operation. The producer may use and submit any other report form in lieu of the state form sent by the executive director of the department of revenue that contains the same information as prescribed in the state form. The report shall be due April 30 of each year. The executive director of the department of revenue shall submit a copy of the report required by this paragraph (d) to the executive director of the department of local affairs. In the case of failure of any producer to submit the report on or before the date required by this paragraph (d) to the department of revenue, a written notice shall be sent to the producer by the department of revenue by first-class mail as set forth in section 39-21-105.5 stating that the producer has failed to submit a copy of the report required by this paragraph (d) and informing the producer of the penalty provision contained in this paragraph (d). If the producer fails within forty-five days after receipt of the written notice to submit the required report, there shall be levied and collected a penalty for the failure in the amount of fifty dollars for each day, or portion thereof, during which the failure continues. Any moneys and interest collected under this paragraph (d) shall be added to the fifteen percent of gross receipts from the local government severance tax fund and distributed to counties or municipalities in the manner prescribed by paragraph (c) of this subsection (1). Moneys distributed from the local government severance tax fund pursuant to paragraph (c) of this subsection (1) shall be distributed no later than August 31 of each year. Any producer not liable for severance tax under this section shall not be required to submit a report under this subsection (1). This sub-subparagraph (A) shall apply to any report for a taxable year commencing prior to January 1, 2008.
(B) Every party that registers exempt production with the department of revenue, withholds income pursuant to section 39-29-111 (1), or files a declaration pursuant to section 39-29-104 (2) or 39-29-112 (2) shall submit a report to the department of local affairs in a format specified by the executive director of the department indicating the following: The name and address of the party; the name of the mine, related facility, or operation; the names of the municipalities or counties in which the party's employees maintain their actual residences as given by the employees, giving the number of the employees for each such municipality or unincorporated area of each such county; and the total number of the employees of the mine or related facility or crude oil, natural gas, or oil and gas operation. The report shall be due April 30 of each year. This sub-subparagraph (B) shall apply to any report for a taxable year commencing on or after January 1, 2008.
(II) (A) (Deleted by amendment, L. 2008, p. 1680, � 6, effective August 5, 2008.)
(B) For purposes of this paragraph (d), an employee of a crude oil, natural gas, or oil and gas operation means any individual who is employed and compensated for at least five hundred hours of work in any six months during the calendar year preceding the due date of the report by a producer, interest owner, or party who contracts with a producer or interest owner for the purposes of extracting such crude oil, natural gas, or oil and gas out of the ground and at point of first sale.
(C) In the case of failure of any party to submit the report required pursuant to sub-subparagraph (B) of subparagraph (I) of this paragraph (d) on or before the required date to the department of local affairs, a written notice shall be sent to the party by the department by first-class mail stating that the party has failed to submit a copy of the report required by sub-subparagraph (B) of subparagraph (I) of this paragraph (d) and informing the party of the penalty provision contained in this sub-subparagraph (C). If the party fails within forty-five days after receipt of the written notice to submit the required report, there shall be levied and collected a penalty for the failure in the amount of fifty dollars for each day, or portion thereof, during which the failure continues. Any moneys and interest collected under this sub-subparagraph (C) shall be added to the thirty percent of gross receipts from the local government severance tax fund distributed to counties or municipalities in the manner prescribed by paragraph (c) of this subsection (1). The notice required pursuant to this sub-subparagraph (C) shall be sent in accordance with the provisions of section 39-21-105.5, and the provisions of that section shall otherwise apply to the notice.
(e) and (f) (Deleted by amendment, L. 2008, p. 1680, � 6, effective August 5, 2008.)
(2) Repealed.
(2.5) In accordance with the provisions of section 34-63-102 (5)(b)(VI), the energy impact assistance advisory committee established pursuant to said section shall make recommendations to the executive director of the department of local affairs regarding the distribution of money authorized pursuant to this section.
(3) Notwithstanding section 24-1-136 (11)(a)(I), the executive director of the department of local affairs shall deliver to the state auditor and file with the general assembly annually before February 1 a detailed report accounting for the distribution of all funds for the previous year. The energy impact assistance advisory committee shall review the report prior to it being delivered and filed.
(4) Repealed.
(5) Notwithstanding any provision of this section to the contrary, on June 1, 2009, the state treasurer shall deduct seven million five hundred thousand dollars from the local government severance tax fund and transfer such sum to the general fund.
(6) Notwithstanding any provision of this section to the contrary, on April 15, 2010, the state treasurer shall deduct fifty million three hundred twenty-seven thousand seven hundred ninety-six dollars from the local government severance tax fund and transfer such sum to the general fund.
(7) Notwithstanding any provision of this section to the contrary:
(a) On June 30, 2011, the state treasurer shall deduct seventy million dollars from the local government severance tax fund and transfer such sum to the general fund.
(b) Due to the transfer made pursuant to paragraph (a) of this subsection (7), for the state fiscal year commencing on July 1, 2010, the amount of the gross receipts credited to the local government severance tax fund that are distributed pursuant to paragraph (b) of subsection (1) of this section shall be decreased by three million dollars and the amount of gross receipts that are distributed pursuant to paragraph (c) of subsection (1) of this section shall be increased by three million dollars.
(c) On June 30, 2012, the state treasurer shall deduct forty-one million dollars from the local government severance tax fund and transfer such sum to the general fund.
(d) On June 30, 2018, the state treasurer shall transfer twenty-two million eight hundred fifty thousand dollars from the local government severance tax fund to the general fund.
(e) On July 1, 2024, the state treasurer shall transfer twenty-five million dollars from the local government severance tax fund to the general fund.
(f) On June 30, 2025, the state treasurer shall transfer ten million dollars from the local government severance tax fund to the general fund.
(8) Notwithstanding any provision of this section to the contrary, an amount equal to forty-eight million three hundred thousand dollars in the local government severance tax fund that would otherwise be distributed under paragraph (b) of subsection (1) of this section is restricted from being used for any purpose whatsoever, until such time that the joint budget committee, by a majority vote, releases the restriction on some or all of the money. It is the general assembly's intent that the restriction of money in the fund shall not affect the distributions made under paragraph (c) of subsection (1) of this section.
(9) Repealed.
(10) (a) Notwithstanding any provision of this section to the contrary, on July 1, 2025, and on July 1 of each year thereafter through July 1, 2034, the state treasurer shall transfer fifteen million dollars from the local government severance tax fund to the public safety communications trust fund created in section 24-33.5-2510 (1).
(b) This subsection (10) is repealed, effective July 1, 2035.
(11) (a) For state fiscal years commencing on or before July 1, 2024, and on or after July 1, 2026, the state treasurer shall credit all interest and income derived from the local government severance tax fund to the local government severance tax fund.
(b) For the state fiscal year commencing on July 1, 2025, in accordance with section 24-36-114 (1), the state treasurer shall credit all interest and income derived from the deposit and investment of money in the local government severance tax fund to the general fund.
(c) (I) On June 30, 2025, the state treasurer shall transfer eight million six hundred thirty-nine thousand ninety-three dollars from the local government severance tax fund to the general fund.
(II) This subsection (11)(c) is repealed, effective July 1, 2026.
Source: L. 77: Entire article added, p. 1848, � 1, effective January 1, 1978. L. 81: (1)(c) and (1)(d) amended, p. 1903, � 3, effective June 19. L. 82: (1)(d) amended, p. 581, � 1, effective April 6. L. 85: (1)(a) and (1)(b) amended, p. 1290, � 1, effective May 31. L. 86: (2)(c) added, p. 426, � 65, effective March 26. L. 88: (2) repealed, p. 319, � 18, effective April 14. L. 93: (1)(b)(III) added, p. 448, � 5, effective April 19. L. 96: (1)(d)(I) amended, p. 168, � 12, effective July 1. L. 97: (1)(a) amended, p. 1147, � 2, effective May 28. L. 98: (1)(a)(II) amended, p. 829, � 54, effective August 5. L. 99: (1)(a)(I) amended, p. 927, � 6, effective May 24. L. 2002, 3rd Ex. Sess.: (1)(b)(IV) added, p. 39, � 8, effective July 17. L. 2005: (4) added, p. 414, � 3, effective April 28. L. 2007: (1)(b)(I) and (1)(c) amended and (1)(c.5) added, p. 1338, � 1, effective May 29; (1)(b)(III) amended, p. 1366, � 1, effective May 29; (1)(a)(I) amended, p. 1410, � 5, effective May 30. L. 2008: (1)(b)(I), (1)(c), (1)(c.5), (1)(d), (1)(e), (1)(f), and (3) amended and (2.5) added, p. 1680, � 6, effective August 5. L. 2009: (5) added, (SB 09-279), ch. 367, p. 1932, � 23, effective June 1; (1)(d)(II)(C) amended, (SB 09-292), ch. 369, p. 1980, � 116, effective August 5. L. 2010: (6) added, (HB 10-1327), ch. 135, p. 451, � 10, effective April 15; (7) added, (HB 10-1388), ch. 362, p. 1717, � 3, effective June 7. L. 2011: (7)(a) amended, (SB 11-164), ch. 33, p. 94, � 10, effective March 18; (7)(c) added, (SB 11-226), ch. 190, p. 735, � 8, effective May 19; (1)(a)(II) repealed, (SB 11-238), ch. 300, p. 1446, � 3, effective June 8. L. 2013: (1)(a)(III) amended, (HB 13-1300), ch. 316, p. 1707, � 131, effective August 7. L. 2015: (1)(b)(V) added, (HB 15-1225), ch. 187, p. 622, � 5, effective May 13. L. 2016: (8) added, (SB 16-218), ch. 289, p. 1174, � 7, effective June 10. L. 2017: (7)(d) added, (SB 17-260), ch. 157, p. 537, � 3, effective April 28; (3) amended, (HB 17-1047), ch. 26, p. 79, � 4, effective August 9. L. 2020: (1)(a)(I) amended, (SB 20-136), ch. 70, p. 298, � 51, effective September 14. L. 2021: (9) added, (HB 21-1253), ch. 225, p. 1204, � 2, effective June 14. L. 2022: (2.5) amended, (SB 22-013), ch. 2, p. 94, � 132, effective February 25. L. 2023: (9)(b) amended, (SB 23-016), ch. 165, p. 743, � 13, effective August 7. L. 2024: (7)(e) added, (HB 24-1413), ch. 228, p. 1405, � 3, effective May 22. L. 2025: (10) added, (SB 25-256), ch. 107, p. 458, � 1, effective April 24; (7)(f) added, (SB 25-264), ch. 129, p. 509, � 46, effective April 25; (1)(a)(I) amended and (11) added, (SB 25-317), ch. 385, p. 2165, � 49, effective June 3; (1)(b)(I) and (1)(b)(II)(A) amended, (SB 25-037), ch. 364, p. 1977, � 6, effective June 3.
Editor's note: (1) Subsection (4)(b) provided for the repeal of subsection (4), effective July 1, 2007. (See L. 2005, p. 414.)
(2) Subsection (9)(b) provided for the repeal of subsection (9), effective July 1, 2025. (See L. 2023, p. 743.)
Cross references: (1) For the legislative declaration contained in the 1999 act amending subsection (1)(a)(I), see section 1 of chapter 235, Session Laws of Colorado 1999.
(2) For the legislative declaration in HB 15-1225, see section 1 of chapter 187, Session Laws of Colorado 2015. For the legislative declaration in SB 20-136, see section 1 of chapter 70, Session Laws of Colorado 2020. For the legislative declaration in HB 21-1253, see section 1 of chapter 225, Session Laws of Colorado 2021. For the legislative declaration in SB 25-317, see section 1 of chapter 385, Session Laws of Colorado 2025.