CO HB1367

Repeals the severance tax exemption for stripper wells (oil wells producing ≤15 barrels per day and gas wells producing ≤90,000 cubic feet per day) effective January 1, 2025

In 2022, stripper well operators extracted an estimated $4.2 billion in minerals without paying severance taxes; approximately 21,368 stripper oil wells represent 57% of all oil wells and 10% of total production, while 25,526 stripper gas wells represent 68% of gas wells and 14% of total production

Makes conforming amendments to remove ad valorem tax credits for stripper well production for taxable years prior to 2025 and updates withholding and penalty provisions

Effective date is January 1, 2025, subject to potential referendum petition and voter approval in November 2024, with certain penalty provisions taking effect January 1, 2026

Estimates only de minimis revenue gain to state since former stripper well production will now qualify for the ad valorem tax credit applicable to other oil and gas production