Colo. Code Regs. 39-29-106
Current through Register Vol. 47, No. 19, October 10, 2024
Basis and Purpose. The bases for this rule are sections 39-21-112(1) and 39-29-106, C.R.S. The purpose of this rule is to clarify the imposition of the severance tax on coal, as well as exemptions, credits, and the tax rate therefor.
(1)Tax and Exemptions. In addition to all other taxes, there is levied a tax upon the severance of coal from the earth within this state. On and after July 1, 1999, but before January 1, 2026, the tax on coal is subject to an exemption provided in section 39-29-106(2), C.R.S. The exemption need not be prorated for taxable periods of less than a calendar quarter.(2)Credits.(a) For taxable years commencing prior to January 1, 2026, section 39-29-106 (3.5) and (4), C.R.S., allows a credit for the production of lignitic coal.(b) For taxable years commencing prior to January 1, 2026, section 39-29-106(3) and (3.5), C.R.S., allows a credit for coal produced from underground mines.(3)Tax Rate. The rate of tax on coal shall be determined as follows: (a) The basic rate shall be 36 cents per ton of coal.(b) The rate shall be adjusted each quarter based upon changes in the Producer's Price Index - All Commodities, (not seasonally adjusted) prepared by the U.S. Department of Labor, Bureau of Labor Statistics. Revisions to the Producer's Price Index shall not result in a further adjustment to the coal tax rate for a given quarter.(c) The adjustment shall be one percent of the basic rate for every full one and one-half percent change in the Producer's Price Index over the base period of January 1978.43 CR 23, December 10, 2020, effective 12/30/202046 CR 15, August 10, 2023, effective 8/30/2023