DR 0021W - Oil & Gas Severance Withholding Statement

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.

This video explains the purpose and filing process for the DR 0021W (Oil and Gas Withholding Statement), a form used by producers or first purchasers to report the 1% severance tax withheld from payments made to interest owners. It serves as a guide for withholding agents who must provide these statements to royalty and working interest owners by March 1 of each year, allowing those owners to claim tax credits on their state severance tax returns.