Coal Severance Tax

Colorado Severance Tax is a tax imposed upon nonrenewable natural resources that are removed from the earth. In addition to any other tax, there shall be levied, collected, and paid for each taxable year a tax upon the severance of all coal in this state and shall be levied against every person engaged in the severance of coal.

Every individual, corporation, business trust, partner in a partnership, association, estate, trust or any other legal entity liable for the payment of Colorado coal severance tax must file a Colorado Coal Severance Tax Return (DR 0020C). This return must be made for the same tax year used for federal income tax purposes and is due on or before the 15th day of the fourth month following the end of the taxable year. Coal severance tax is calculated by using the rates listed in the charts below.

Every corporation subject to Colorado severance tax must file a declaration of estimated tax (DR 0021PC) if its severance tax liability for the current tax year can reasonably be expected to exceed its Colorado severance tax credits by $5,000 or more.