Bill > SB040

This bill establishes the Future of Severance Taxes and Water Funding Task Force to address challenges related to severance tax revenue in Colorado. The task force will consist of 10 members representing various state agencies, industries, and interests, including representatives from natural resources, agriculture, environmental advocacy, oil and gas, water conservation, local government, and municipal leadership. The primary purpose of the task force is to work with a third-party contractor to develop a comprehensive study exploring ways to maintain funding for water needs and energy impact grants as severance tax revenues decline. The study will focus on strategies to avoid using severance tax revenue to backfill the state budget, potentially repay previously transferred funds, and identify alternative funding mechanisms. The task force will review a draft report by January 15, 2026, and submit a final report to the Water Resources and Agriculture Review Committee by July 15, 2026. The bill also makes changes to severance tax credits for oil and gas production and appropriates $198,592 from the severance tax operational fund to support the task force's work during the 2025-26 fiscal year. The task force is set to be repealed on December 31, 2026, after completing its study and presenting its findings.

Agriculture and Natural Resources, Budget and Finance

https://leg.colorado.gov/bills/sb25-040