First Regular Session Sixty-seventh General Assembly STATE OF COLORADO INTRODUCED LLS NO. 09-0440.01 Ed DeCecco HOUSE BILL 09-1038 HOUSE SPONSORSHIP Lundberg, SENATE SPONSORSHIP (None), House Committees Senate Committees Finance A BILL FOR AN ACT Concerning a limited exemption from the state severance tax for production from a primary commercial oil shale facility. Bill Summary (Note: This summary applies to this bill as introduced and does not necessarily reflect any amendments that may be subsequently adopted.) Prior to January 1, 2021, exempts a portion of the production from a primary commercial oil shale facility, which is defined in law, from the severance tax. Be it enacted by the General Assembly of the State of Colorado: SECTION 1. 39-29-107 (3) and (3.1), Colorado Revised Statutes, are amended to read: 39-29-107. Tax on severance of oil shale - definition - repeal. (3) (a) The production of the first fifteen thousand tons per day of oil shale or ten thousand barrels per day of shale oil, whichever is greater, shall be exempt from the tax. (b) (I) Prior to January 1, 2021, twenty percent of the production that is otherwise subject to the tax established by this section from a primary commercial oil shale facility shall be exempt from such tax. As used in this subsection (3), "primary commercial oil shale facility" means a facility on which construction was started before January 1, 2012, and for which twenty-five percent of the average number of employees who work at the facility during the current year were employed at the facility as of January 1, 2012. (II) This paragraph (b) is repealed, effective January 1, 2022. (3.1) The calculation of the daily production subject to the tax and to the exemption in paragraph (a) of subsection (3) of this section shall be determined by dividing the total production of a calendar month by the total number of days in such month. SECTION 2. Act subject to petition - effective date. This act shall take effect at 12:01 a.m. on the day following the expiration of the ninety-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution, (August 4, 2009, if adjournment sine die is on May 6, 2009); except that, if a referendum petition is filed against this act or an item, section, or part of this act within such period, then the act, item, section, or part, if approved by the people, shall take effect on the date of the official declaration of the vote thereon by proclamation of the governor.