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DR 0020A (07/27/21)
COLORADO DEPARTMENT OF REVENUE
Denver CO 80261-0006
*DO=NOT=SEND* Tax.Colorado.gov
Instructions for Metallic Minerals Severance Tax
Schedule DR 0020A
Filing Requirements Ad Valorem Tax
Every individual, corporation, business trust, partner in The ad valorem tax must be reported on the same basis
a partnership, association, estate, trust or any other legal (accrual or cash) used for filing federal income tax returns. For
entity liable for the payment of Colorado severance tax must the accrual basis taxpayer, the accrual/assessment date is the
file a severance tax return. This return must be made for the date the actual amount of the ad valorem tax is determined
same tax year used for federal income tax purposes and is based upon the mill levy set by the counties. For the cash
due on or before the 15th day of the fourth month following basis filer, the ad valorem tax is paid when it is actually paid
the end of the taxable year. to the county assessor.
Controlled Group Impact Assistance Credit
In case of a controlled group of corporations as defined in A credit against the severance tax is allowed with respect
section 613A of the Internal Revenue Code or of a family (an to contributions of property or money to units of local
individual, the individual's spouse, and their minor children) government for the amount of the credit must be certified by
where more than one member of the group or family are the Executive Director of the Department of Local Affairs.
subject to the severance tax, the tax must be jointly computed
Estimated Tax
and the severance tax return must be jointly filed under the Every corporation subject to Colorado severance tax must
name of the principal taxpaying corporation, the married file a declaration of estimated tax, the DR 0021PA, if its
couple or the single adult. The DR 0021AS, available upon severance tax liability for the current tax year can reasonably
request from the Department of Revenue, must be attached be expected to exceed its Colorado severance tax credits by
in case of a controlled group of corporations. $5,000 or more.
Metallic Minerals Defined Interest and Penalty
Metallic minerals means all minerals except molybdenum, If the return is filed after the due date, interest at the current
oil and gas, carbon dioxide, coal, oil shale, rock, gravel, statutory rate is due on any balance of tax due until paid. A
stone products, earths, limestone, and dolomite. Minerals penalty of the larger of $30 or 30% of the balance of tax due
associated with molybdenum and oil shale production are is due on any delinquently filed return. A corporation that
not excluded from the definition of metallic minerals. underpays its estimated tax may owe an estimated tax penalty.
Taxpayer Direct Deposit
The tax is levied against every mining operation engaged in The Department can deposit your refund directly into your
the severance of metallic minerals. account at a U.S. bank or other financial institution (such
Tax as a mutual fund, brokerage firm, or credit union) in the
The tax is 2.25% of the gross income from the mining United States.
operations in excess of $19,000,000 per year. The $19,000,000
Extension of Time for Filing
exemption need not be prorated for a taxable period of less An automatic six-month extension of time for filing the
than twelve months. severance tax return is allowed. This is an extension of time
Gross Income for filing your severance tax return, not an extension of time
Gross income means the value of the ore immediately after for paying your tax. If you owe additional tax, use the DR
its removal from the mine, and does not include any value 0021SA to submit an extension payment.
added subsequent to mining by any treatment processes,
Amended Return
such as crushing, grinding or concentration, by transportation If you find it necessary to amend your Colorado severance
from the mine, or by marketing of such ore or any products tax return, you are required to file the
derived therefrom. DR 0020AX with the Department of Revenue.
Income from the extraction or processing of ores or minerals
Information
from mine waste or residue of previously processed ores is Forms and additional information can be accessed on the
not subject to tax. Ores that are processed and abandoned Web site at Tax.Colorado.gov
and subsequently reclaimed by an unrelated economic interest
shall be generally considered as waste or residue.
The tax applies to the value of the ore at the time it is severed,
not to the sale of the ore. Ore severed during a year is taxed
for that year even if it remains unsold at the end of the year.
