Form Dr 0020a - Colorado Metallic Minerals Severance Tax Return Page 2
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1
2instructions for
Metallic Minerals severance Tax
schedule dr 0020a
filing requirements
ad valorem Tax
Every individual, corporation, business trust, partner in a
The ad valorem tax must be reported on the same basis
partnership, association, estate, trust or any other legal
(accrual or cash) used for filing federal income tax returns.
entity liable for the payment of Colorado severance tax
For the accrual basis taxpayer, the accrual/assessment
must file a severance tax return. This return must be made
date is the date the actual amount of the ad valorem tax is
for the same tax year used for federal income tax purposes
determined based upon the mill levy set by the counties.
and is due on or before the 15th day of the fourth month
For the cash basis filer, the ad valorem tax is paid when it is
following the end of the taxable year.
actually paid 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
to contributions of property or money to units of local
(man, woman and minor children) where more than one
government for the amount of the credit must be certified
member of the group or family are subject to the severance
by the Executive Director of the Department of Local
tax, the tax must be jointly computed and the severance tax
Affairs.
return must be jointly filed under the name of the principal
taxpaying corporation, the married couple or the single adult.
estimated Tax
Every corporation subject to Colorado severance tax
The DR 0021AS, available upon request from the Department
must file a declaration of estimated tax, the DR 0021PA,
of Revenue, must be attached in case of a controlled group of
if its severance tax liability for the current tax year can
corporations.
reasonably be expected to exceed its Colorado severance
Metallic Minerals Defined
tax credits by $5,000 or more.
Metallic minerals means all minerals except molybdenum, oil
and gas, carbon dioxide, coal, oil shale, rock, gravel, stone
interest and Penalty
If the return is filed after the due date, interest at the current
products, earths, limestone, and dolomite. Minerals associated
statutory rate is due on any balance of tax due until paid.
with molybdenum and oil shale production are not excluded
A penalty of the larger of $30 or 30% of the balance of tax
from the definition of metallic minerals.
due is due on any delinquently filed return. A corporation
that underpays its estimated tax may owe an estimated tax
Taxpayer
The tax is levied against every mining operation engaged in
penalty.
the severance of metallic minerals.
direct deposit
Tax
The Department can deposit your refund directly into your
The tax is 2.25% of the gross income from the mining opera-
account at a U.S. bank or other financial institution (such as
tions in excess of $19,000,000 per year. The $19,000,000
a mutual fund, brokerage firm, or credit union) in the United
exemption need not be prorated for a taxable period of less
States.
than twelve months.
extension of Time for filing
An automatic six-month extension of time for filing the
Gross income
Gross income means the value of the ore immediately after
severance tax return is allowed. This is an extension of
its removal from the mine, and does not include any value added
time for filing your severance tax return, not an extension of
subsequent to mining by any treatment processes, such as
time for paying your tax. If you owe additional tax, use the
crushing, grinding or concentration, by transportation from the mine,
DR 0021SA to submit an extension payment.
or by marketing of such ore or any products derived therefrom.
amended return
Income from the extraction or processing of ores or minerals
If you find it necessary to amend your Colorado severance
from mine waste or residue of previously processed ores is
tax return, you are required to file the DR 0020AX with the
not subject to tax. Ores that are processed and abandoned
Department of Revenue.
and subsequently reclaimed by an unrelated economic
interest shall be generally considered as waste or residue.
information
Forms and additional information can be accessed on the
The tax applies to the value of the ore at the time it is severed,
Web site at
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.
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