Any producer, working, royalty or other interest owner of oil and gas produced in Colorado is required to pay severance tax. Every producer or first purchaser is required to withhold 1% of the gross income paid to every owner, and to supply an Oil and Gas Withholding Statement by March 1 of each year. This Oil and Gas Withholding Statement form lists your gross income from the property indicated and the amount the producer or first purchaser has withheld. It also lists your share of any ad valorem taxes paid. You must attach one copy of this form to your “Colorado Severance Tax Return” (DR 0021) in order to claim credits.
