Please remember that you must claim the state sales tax refund (TABOR refund) when filing your state income tax return. If you claimed a 2023 refund, the TABOR refund will be combined and issued out with your refund. Unlike the 2022 Colorado cashback, no separate check will be issued. 


Oil & Gas Severance Tax | Owners & Operators


  • Open and maintain a Colorado oil and gas severance withholding tax account with the Colorado Department of Revenue.
  • Withhold 1% from the gross income disbursed and electronically remit withholding to the department monthly.
  • File with the Department an annual reconciliation of withholding.
  • Notify each interest owner annually of the amount of severance tax withheld from his/her interest payments.


It is not necessary to file a severance tax return if you meet both of the following conditions:

  1. The total gross oil and gas withholding on form(s) DR 0021W for the calendar year is less than $250, and
  2. The producer has withheld sufficiently from royalty or production payments to cover the severance tax liability.