HomeMy WebLinkAbout830988.tiff JOHN P. DONLEY
State Senator —
1862 13th Avenue COMMITTEES
Greeley,Colorado 80631 `t Vice Chairman of:
356-5600 ly i State Affairs
Member of:
! itill17 ,1,i! Education:
Local Government:
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*matt Clamber
*tatr of (EIutorai n
Droner
December 13, 1983
Members of the Board of County Camlissioners
915 10th Street
Greeley, Colorado 80631
Dear Commissioners,
Enclosed please find information I received from the Department
of Revenue. No legislation will be introduced to correct the problems
described.
It occurs to me that the only solution is to make sure all the
companies in Weld County report accurately. In light of our recent
support for their position on spacing, I would think we could get
their cooperation.
Good luck! We need the money.
Sincerely,
John P. Donley
JPD/llk
830988
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STATE OF COLORADO
DEPARTMENT OF REVENUE , '' "'0/0,;
486 Capitol Annex,
1375 Sherman St.
Denver, Colorado 80261
Phone (303) 866-3091 lo
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November 21 , 1983 Richard D. Lamm,
Governor
Alan N.Charnes,
Executive Director
The Honorable John Donley
Colorado State Senate
P. 0. Box 1286
Greeley, CO 80632
Dear Senator Donley:
As we discussed, I am sending you a copy of Senate Bill 115, concerning the
local government severance tax fund. Also enclosed are regulations promul-
gated by the Department, the 1983 employee residence report form with the
instructions and the cover letter mailed to oil and gas producers.
The Department of Revenue's role is to gather the employee residence
information, which is then turned over to the State Office of Impact
Assistance and the Colorado Department of Local Affairs. The latter then
distributes 15% of the annual revenues accruing to the local governments'
severance tax fund based on the reports provided by Revenue. If you need
specific information on allocations to Weld County you can contact Steve
Colby, Director of the State Office of Impact Assistance, at 866-2674.
There are a couple of areas within the current law you may wish to examine
in considering statutory change. For instance, the relatively small number
of employees reported (see the No. 1 highlighted portion of the statute)
stems, in part, from the statute's definition of "employees." They must be
both full time and directly employed in the process of extracting oil or
gas out of the ground or at the point of first sale.
The other point deserving scrutiny for possible change is highlighted area
No. 2 of the statute. This limits the report to producers that are liable
for severance tax.
This is a difficult issue at best. And, surely, statutory changes encom-
passing either or both the areas suggested would be of benefit to some
localities and would have a negative impact on others.
Hopefully, this overview has provided you with the necessary information
and perspectives on the issues. If you have additional questions, please
contact me.
Sincerely,
Alan N. Charnes
Executive Director
. T104
• T re 1982
C JP
SENATE BILL NO. 115.
BY SENATORS Soash, Beatty, Bishop, Holme, Strickland, and •
Zakhem;
also REPRESENTATIVES Armstrong, DeNier, Hinman, and Robb.
CONCERNING THE LOCAL GOVERNMENT SEVERANCE TAX FUND, AND
PROVIDING A PENALTY FOR FAILURE TO FILE PRODUCER REPORTS
RELATED THERETO.
Be it enacted py the General Assembly of the State of Colorado:
C SECTION 1. 39-29-110 (1) (d) , Colorado Revised Statutes
1973, as amended, is amended to read:
39-29-110. Local government severance tax fund - -
creation - administration - energy impact assistance advisory
committee - created. (1) (d) (I) NINLIY DAYS PRIOR 10 THE
END OF EACH FISCAL YEAR, THE EXECUTIVE DIRECTOR OF THE
DEPARTMENT OF REVENUE SHALL SEND every producer who is subject
to the severance tax and whose payment is subject to the
distribution formula provided in this subsection (1) A FORM ON
WHICH SUCH PRODUCER shall submit a quarterly report to the
department of revenue and-to-the-department-of--iocai--affairs
indicating THE FOLLOWING: THE NAME AND ADDRESS OF THE
PRODUCER, THE NAME OF THE MINE, RELATED FACILITY, OR
OPERATION, THE NAMES OF THE MUNICIPALITIES OR COUNTIES IN
WHICH ITS EMPLOYEES MAINTAIN THEIR ACTUAL RESIDENCES AS GIVEN
BY THE EMPLOYEES, GIVING THE NUMBER OF EMPLOYEES FOR EACH SUCH
MUNICIPALITY OR UNINCORPORATED AREA OF EACH SUCH COUNTY, AND
the total number of employees of the mine or related facility
or crude oil , natural gas, or oil and gas operation. and-the
number-residing-in-each-conntys--unincorporated--area--or--in
each--mnnicipaiity- SAID PRODUCER MAY USE AND SUBMIT ANY OTHER
REPORT FORM IN LIEU OF THE STATE FORM SENT BY THE EXECUTIVE
DIRECTOR OF THE DEPARTMENT OF REVENUE WHICH CONTAINS THE SAME
INFORMATION AS PRESCRIBED IN SAID STATE FORM. THE REPORT
Capital letters indicate new material added to existing statutes;
dashes through words indicate deletions from existing statutes and
such material not part of act.
SHALL BE DUE APRIL 30 OF EACH YEAR. THE EXECUTIVE DIRECTOR OF
C THE DEPARTMENT OF REVENUE SHALL SUBMIT A COPY OF THE REPORT
REQUIRED BY THIS PARAGRAPH (d) TO THE EXECUTIVE DIRECTOR OF
THE DEPARTMENT OF LOCAL AFFAIRS. IN THE CASE OF FAILURE OF
ANY PRODUCER TO SUBMIT THE REPORT ON OR BEFORE THE DATE
REQUIRED BY THIS PARAGRAPH (d) TO THE DEPARTMENT OF REVENUE,
A WRITTEN NOTICE SHALL BE SENT TO THE PRODUCER BY THE
DEPARTMENT OF REVENUE BY CERTIFIED MAIL STATING THAT THE
PRODUCER HAS FAILED TO SUBMIT A COPY OF THE REPORT REQUIRED BY
THIS PARAGRAPH (d) AND INFORMING THE PRODUCER OF THE PENALTY
PROVISION CONTAINED IN THIS PARAGRAPH (d). IF THE PRODUCER
FAILS WITHIN FORTY-FIVE DAYS AFTER RECEIPT OF SAID CERTIFIED
LETTER TO SUBMIT THE REQUIRED REPORT, THERE SHALL BE LEVIED
AND COLLECTED A PENALTY FOR SUCH FAILURE IN THE AMOUNT OF
FIFTY DOLLARS FOR EACH DAY, OR PORTION THEREOF, DURING WHICH
SUCH FAILURE CONTINUES. ANY MONEYS AND INTEREST COLLECTED
UNDER THIS PARAGRAPH (d) SHALL BE ADDED TO THE FIFTEEN PERCENT
OF GROSS RECEIPTS FROM THE LOCAL GOVERNMENT SEVERANCE TAX FUND
AND DISTRIBUTED TO COUNTIES OR MUNICIPALITIES IN THE MANNER
PRESCRIBED BY PARAGRAPH (c) OF THIS SUBSECTION (1). MONEYS
DISTRIBUTED FROM THE LOCAL GOVERNMENT SEVERANCE TAX FUND
PURSUANT TO PARAGRAPH (c) OF THIS SUBSECTION (1) SHALL BE
DISTRIBUTED NO LATER THAN AUGUST 31 OF EACH YEAR. ANY
PRODUCER NOT LIABLE FOR SEVERANCE TAX UNDER THIS SECTION SHALL /
NOT BE REQUIRED TO SUBMIT A REPORT UNDER THIS SUBSECTION (1).
C (II) (A) FOR PURPOSES OF THIS SUBSECTION (1), A
"PRODUCER OF CRUDE OIL, NATURAL GAS, OR OIL AND GAS" MEANS ANY
PERSON WHO FILES A CRUDE OIL, NATURAL GAS, OR OIL AND GAS
PRODUCTION REPORT WITH THE OIL AND GAS CONSERVATION COMMISSION
PURSUANT TO ARTICLE 60 OF TITLE 34, C. R. S. 1973. A PRODUCER
SHALL INCLUDE A PRODUCER-OPERATOR OR A UNIT OPERATOR. A LIST
OF SUCH PRODUCERS, TOGETHER WITH THEIR ADDRESSES, WHO OPERATED
IN THE STATE DURING THE PREVIOUS CALENDAR YEAR SHALL BE
FURNISHED TO THE DEPARTMENT OF REVENUE BY SAID OIL AND GAS
CONSERVATION COMMISSION NO LATER THAN JANUARY 31 OF EACH YEAR.
(B) FOR PURPOSES OF THIS PARAGRAPH (d), AN "EMPLOYEE OF
A_CRUDF..•.OIl_,_NAIURAL GAS,. OR_OIL AND GAS OPERATION" MEANS ANY
INDIVIDUAL WHO IS EMPLOYED AND COMPENSATED ON A FUIL-TIMF
BASIS BY THE PRODUCER OF CRUDE OIL, NATURAL GAS, OR OIL AND
GAS, AS DEFINED IN SUB-SUBPARAGRAPH (A) OF THIS SUBPARAGRAPH
(II), FOR THE PURPOSES OF EXTRACTING SUCH CRUDE OIL, NATURAL
GAS, OR OTLKNU GAS ,OUT OF THE GROUND AND AT POINT OF FIRST
SAt SUCH EMPLOYEE MAY INCLUDE ANY INDIVIDUAL WHO IS
EMPLOYED BY ANY COMPANY OR PERSON WHO CONTRACTS WITH SUCH
PRODUCER FOR PURPOSES OF EXTRACTING SUCH CRUDE OIL, NATURAL
GAS, OR OIL AND GAS OUT OF THE GROUND AND AT POINT OF FIRST
SALE. "INDIVIDUAL WHO IS EMPLOYED ON A FULL-TIME BASIS" MEANS
AN EMPLOYEE WHO HAS WORKED FOR THE PRODUCER OR CONTRACTOR
DURING THE SIX-MONTH PERIOD NEXT PRECEDING THE LAST DAY OF THE
ANNUAL REPORTING PERIOD. "EMPLOYEE" DOES NOT MEAN ANY
EMPLOYEE OF ANY EXPLORATION OR DRILLING CREW, ANY EMPLOYEE OF
PAGE 2-SENATE BILL NO. 115
ANY WELL SERVICE COMPANY, OR ANY OTHER CONTRACTOR OR PERSON
WHO MAY WORK IN ANY SUCH OPERATION ON A PERIODIC OR TEMPORARY
BASIS AND WHO IS EMPLOYED BY COMPANIES OR ENTITIES OTHER THAN
THE PRODUCER.
•SECTION 2. Safety clause. The general assembly hereby
finds, determines, and declares that this act is necessary for
the immediate preservation of the public peace, health, and
safety.
d
red . Anderson arl B. Bledsoe
PRESIDENT OF SPEAKER OF THE HOUSE
THE SENATE OF REPRESENTATIVES
arjo ie L. Rutenbeck Lorraine om ardi
SECR ARY OF CHIEF CLERK OF THE HOUSE
THE SENATE - OF REPRESENTATIVES
APPROVED
4ILI
lc a a
GOVER OR OF THE STATE OF COLORADO
(_
PAGE 3-SENATE BILL NO. 115
r-.
I
CREGULATION 29-110(1 )(d)
ADD as Regulation 29-110(1 )(d) , 1 C.C.R. 201-10 (at p. 4.01 ) the following:
Regulation 29-110(1 )(d)
For purposes of complying with the reporting requirements contained
in C.R.S. 39-29-110(1 )(d) , 1973, as amended, a producer of crude oil ,
natural gas or oil and gas who is subject to severance tax shall
include within its report information as follows:
1 . The names of the municipalities or counties in which the pro-
ducer's full-time employees, including any contractor's full-
time employees, maintain their actual residences ; as given by
the employees, giving the number of employees in each such
municipality or unincorporated area of each such county as of
December 31 of each year.
2. Employees to be included are those residents of the state of
Colorado employed and compensated on a full-time basis by the
producer (or contractor) for the purposes of extracting crude
oil , natural gas, or oil and gas out of the ground, and at
point of first sale within Colorado or who are assigned full-
time to such extraction activities at point of first sale, but
Cwho reside or whose office is located elsewhere in the state.
3. The term, "full -time employee" means an employee who has been
employed and compensated on a full -time basis by the producer
or contractor during the entire six-month period commencing
July 1 and ending December 31 of each annual reporting period.
The statutory basis for this Regulation is 39-21-112, C.R.S. 1973. The
purpose is to further define the term "employee" as contained in
39-29-110, C.R.S. 1973 so that an appropriate distribution of the sev-
erance fund can be accomplished within the intent of the law.
_ 6'
•
DR 1551 (2/83)
STATE CF COLORADO
DEPARTMENT OF REVENUE
EMPLOYEE RESIDENCE REPORT FOR SEVERANCE TAX DIRECT PAYMENT
(Please see instructions on reverse side - submit report in duplicate)
COMPANY NAME AND ADDRESS: DUE DATE: APRIL 30
CALENDAR YEAR ENDING:
TELEPHONE NO.:
COLORADO ACCOUNT NO.:
NAME OR NAMES OF THE OIL AND GAS FIELD OR OPERATION:
EMPLOYEE LIST
MUNICIPALITY OF RESIDENCE
NUMBER OF EMPLOYEES (Leave blank if employee resides in an unincorporated COUNTY OF RESIDENCE
area)
•
Total
REPORT PREPARED BY:
(Signature) (Title) (Date)
IMPORTANCE AND PURPOSE OF FILING EMPLOYEE RESIDENCE REPORT
THIS REPORT MUST BE COMPLETED TIMELY AND ACCURATELY. Employee information we re-
ceive is to be used to distribute a portion of your severance tax payments directly to localities impacted
by severance of minerals in Colorado.
COLORADO REVISED STATUTE 39-29.110(d) STATES THAT EVERY PRODUCER
who files a crude oil, natural gas, or oil and gas production report with the Oil and Gas Conservation
Commission and is subject to severance tax is required to submit a report to the Colorado Depart-
ment of Revenue indicating:
1) Name and address of the producer
2) Name of oil field or operation
3) Names of municipalities or counties in Colorado in which employees maintain
their residence, as given by the employees
4) Number of employees for each municipality or unincorporated
area of each county
INSTRUCTIONS FOR COMPLETING EMPLOYEE RESIDENCE REPORT
1. Every producer subject to the severance tax must complete this form.
2. A report is to be submitted once each year. (Due April 30) -
3. Crude oil, natural gas, or oil and gas producers may file one form which will include all Colorado
operations.
4. .Employees to be included are those residents of the state of Colorado who are employed and compen-
sated on a full-time basis by the producer (or contractor) for the purposes of extracting crude oil,
natural gas or oil & gas out of the ground, and at point of first sale within Colorado, or who are
assigned full-time to such extraction activities at point of first sale, but who reside, or whose office
is located elsewhere, in the state.
List each incorporated municipality or county in which employees reside. Such employee(s) includes
any individual who is employed by your company or a person who contracts for purposes of extract-
ing crude oil, natural gas, or oil and gas out of the ground and at point of first sale.
5. Include only full-time employees. The term, "full-time employee," means an employee who has
been employed and compensated on a full-time basis by the producer, or any company contracting
with a producer, during the entire six-month period commencing July 1 and ending December 31
of each annual reporting period. ,
6. The name of the town or city must be listed to report the total number of employees residing within
incorporated areas as of December 31.
7 The name of the county of residence is to be listed to report the total number of employees residing
in unincorporated areas.
8. SEND REPORT TO: COLORADO DEPARTMENT OF REVENUE
MAJOR TAX GENERAL INFORMATION SECTION
1375 SHERMAN STREET, ROOM 242
DENVER, COLORADO 80261
If you have any questions, you may call: TAXPAYER SERVICE DIVISION
303-839-5655
1.800-332.2085 (Watts within Colorado only)
STATE OF COLORADO
DEPARTMENT OF REVENUE „"' 1"oy
11/4 State Capitol Annex1375 m i4
n 7.aW
Den Sherman Street £ y�
Denver.Colorado 80261 YY
March 29, 1983
EMPLOYEE RESIDENCE REPORT
Every producer subject to Severance tax is required to submit the
enclosed Employee Residence Report annually. This report is due by
April 30, 1983.
If you are a contractor, please provide the producer-owner of the
well or field with information concerning the number of employees
who have been employed and compensated on a full-time basis for
purposes of extracting crude oil , natural gas, or oil and gas out of
the ground and at the point of first sale. The employee counted
must have been employed and compensated during the entire six-month
period from July 1, 1982, to December 31, 1982.
Your name was on the list of producers (producer/operators, and unit
operators) submitted by the Oil and Gas Commission to the Colorado
Department of Revenue, as required by law.
If you have not filed a Colorado Severance Tax Return (Form DR 21)
attach an explanation to a copy of this letter and return it to this
office.
COLORADO DEPARTMENT OF REVENUE
MAJOR TAX GENERAL INFORMATION
1375 SHERMAN STREET RM 242
DENVER CO 80261
Phone: 303-839-5655 Extension 522
1-800-332-2085 (Within Colo. Only)
Enclosure
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