Colorado facing steep drop in severance-tax revenues

Denver Post ^ | March 27, 2009 | Gargi Chakrabarty

[george76]

Colorado severance taxes on natural-gas and oil production will plunge 84 percent to $40 million in fiscal year 2010...

That compares with $250 million expected this fiscal year, which ends June 30.

A dramatic drop in the price of natural gas and oil is largely to blame for the expected precipitous decline in severance taxes, said Steve Colby, a research contractor with the Colorado Department of Local Affairs, the agency charged with distributing half the state's severance tax.

"This is worse than we expected," he said. "We are being more thoughtful and constrained in our use of funds."

The department distributes 15 percent of the severance taxes, which are paid on minerals removed or "severed" from the ground, to cities and municipalities, and 35 percent in loans and grants to specific projects.

The other half of the severance-tax money goes to the Colorado Department of Natural Resources, which uses it to fund water conservation, wildlife and environmental programs.

[bill1952]

The department distributes 15 percent of the severance taxes, which are paid on minerals removed or “severed” from the ground...

Cute. - Such charming words couch the advance of Socialism

[DaveyB]

But Colorado will make up for the lost revenue, because we will start paying full benefits to those will have sex with state workers, especially if they are homosexuals. It all makes sense if you comprehend liberal economics.

[george76]

Electing these DUmmies is killing us.

Dead Man walking as the voters still have not figured it out yet.

[mountainlion]

There is more oil in Colorado in the oil shale then what is left in Saudi Arabia. The state has chosen to lock up our resources so they can rob by taxation and force us into compliance. We all could be doing well if they only were human.

[rellimpank]

--reminds me of about thirty-five years ago when Dickie Lamm was promoting a mining severance tax and was going to "walk" the state promoting it.

A rather large group of mining wives (including mine at the time) were going to be walking with him in opposition---he didn't walk and didn't get the tax that time--

[tiki]

My son wasn’t happy when he heard that they let the majority of the oil workers go but he does see this as an opportunity to buy a house at a reasonable price in a few months.

[george76]

He may even like the house prices next year better as the restaurants and retail stores who used to sell stuff to oil & gas workers / companies also close...laying off their workers who will have to struggle to pay their bills.

Lots of cheap commercial space will be available, soon.

[george76]

This energy supply is being locked up under new found wilderness designations.

Ritter is running around promoting *green*

Ritter is so excited that he will have more government union employees placed at his green operations who will be forced to work for his re-election campaign.

[SunkenCiv]

Thanks geo.