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<br />.. <br />., <br /> <br />. <br /> <br />. <br /> <br />" <br /> <br />STATE OF COLORl\DO <br /> <br />- <br /> <br />Colorado Water Conservation Board <br />Department of Natural Resources <br />721 Centennial Building <br />1313 Sherman Street <br />Denver, Colorado 80203 <br />Phone: (303) 866.3441 <br />FAX: 1303) 866.4474 <br /> <br />Ro}' Romer <br />CO\ernOl <br /> <br />J,:unt's S_ lochhe.ld <br />Executive DireL1or, DNR <br /> <br />Dtlries C. lile, PE. <br />DiH'clor. C\'VCl~ <br /> <br />MEMORANDUM <br /> <br />TO: <br /> <br />Colorado Water Conservation Board Members <br /> <br />FROM: <br /> <br />William P. Stanton, P.E. <br />Chief, Project Planning and Construction Section <br /> <br />DATE: <br /> <br />November 21, 1996 <br /> <br />SUBJECT: Agenda Item 6, November 25-26,1996 Board Meeting- <br />Water Project Construction Loan Program- <br />Proposed Criteria for Use of the Severance Tax Trust Fund <br /> <br />Severance Taxes <br /> <br />Beginning in 1978, the State of Colorado has annually collected millions of dollars in <br />severance taxes from the mining of oil and gas, coal and molybdenum. <br /> <br />The oil and gas severance tax rate is based on value of production. The coal severance <br />tax is based on tonnage. The rate was cut by a third in 1988 and is now frozen by TABOR. <br />Molybdenum severance tax is on a cent per ton basis. The rate was cut by 2/3 in 1987. <br /> <br />Total severance tax revenue to the state has swung widely due to variation in the price an d <br />tax rate on oil and gas and large tax refunds. Half of severance tax revenue has gone to local <br />governments via the Energy and Mineral Impact Grant Program and direct distribution to local <br />governments. The other half has gone to the state's Severance Tax Trust Fund. <br /> <br />1 <br />