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DR 0020E (07/30/21)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0006
*DO=NOT=SEND* Tax.Colorado.gov
Instructions For Colorado Oil Shale Facility Severance
Tax Return—DR 0020E
Taxpayer Commercial production means production in excess of the
The Oil Shale Facility Severance Tax is levied against every first 15,000 tons per day of oil shale or 10,000 barrels per day
person engaged in the severance of oil shale. It is levied at of shale oil, whichever is greater. The calculation of the daily
the rate below on the gross proceeds from each commercial production shall be determined by dividing the total production
oil shale facility. of a calendar month by the total number of days in such month.
Filing Requirements Exemption
Every individual, corporation, business trust, partner in a The production of the first 15,000 tons per day of oil shale or
partnership, association, estate, trust or any other legal entity 10,000 barrels per day of oil shale, whichever is greater, shall
liable for the payment of Colorado severance tax must file a be exempt from the tax. The calculation of the daily production
severance tax return. This return must be made for the same subject to the tax and to the exemption shall be determined by
tax year used for federal income tax purposes and is due on dividing the total production of a calendar month by the total
or before the 15th day of the fourth month following the end number of days in such month.
of the taxable year.
Impact Assistance Credit
Controlled Group A credit against the severance tax is allowed with respect to
In case of a controlled group of corporations as defined in section contributions of property or money to units of local government.
613A of the Internal Revenue Code or of a family (an individual, The amount of the credit must be certified by the executive
the individual’s spouse, and their minor children) where more than director of the Department of Local Affairs.
one member of the group or family are subject to the severance
tax, the tax must be jointly computed and the severance tax return Estimated Tax
must be jointly filed under the name of the principal taxpaying Every corporation subject to Colorado severance tax must file
corporation, the married couple or the single adult. The DR a declaration of estimated tax, DR 0021PE, if its severance tax
0021AS, available upon request from the Department of Revenue, liability for the current tax year can reasonably be expected to
must be attached in the case of a controlled group of corporations. exceed its Colorado severance tax credits by $5,000 or more.
Tax Rate Interest and penalty
The tax is assessed on the gross proceeds from each If the return is filed after the due date, interest at the current
commercial oil shale facility at the following rates: statutory rate is due on any balance of tax due until paid. A
The first 180 days following the commencement penalty of the larger of $30 or 30% of the balance of tax due
of commercial production 0% is due on any delinquently filed return. A corporation that
The first year following 1% underpays its estimated tax may owe an estimated tax penalty.
The second year following 2%
The third year following 3% Direct Deposit
The fourth year and each succeeding year following 4% The department can deposit your refund directly into
your account at a U.S. bank or other financial institution
Gross proceeds means the value of the oil shale at the point
(such as a mutual fund, brokerage firm, or credit union) in
of severance. Such value shall be determined by deducting
the United States.
from the first sales price of the shale oil all costs, including
direct and indirect expenditures, for: Extension of Time for Filing
(a) equipment and machinery; An automatic six-month extension of time for filing the
(b) fragmenting, crushing, conveying, beneficiating, severance tax return is allowed. This form is an extension of
pyrolysis, retorting, refining and transporting; and time for filing your severance tax return, not an extension of
(c) royalty payments. time for paying your tax. If you owe additional tax, use the DR
Gross proceeds from the sale of oil shale severed from which 0021SE to submit an extension payment.
shale oil has not been extracted will be computed on first
Amended Return
sales price as determined in the paragraph above. Gross
If you find it necessary to amend your Colorado severance tax
proceeds from the sale of shale oil where such is processed
return, you are required to file a DR 0020EX.
by a centralized facility will be determined in the same manner.
Direct and indirect expenditures of processing oil shale after Information
mining are to be applied on the basis of generally accepted Forms and additional information can be accessed on
accounting principles for any given period. Excess cost of the Web site at Tax.Colorado.gov or by telephone at
one taxable year cannot be applied to another taxable year. 303-238-SERV (7378).
