Sharp decline in oil and gas tax revenues expected

By: Associated Press Email
By: Associated Press Email

Denver (AP) - State economists are predicting a $210 million drop in severance taxes on oil and natural-gas production in the 2010 fiscal year that begins July 1.
The Colorado legislative council says the state is expected to receive $40 million in taxes in 2010, compared to $250 million this year.
The Department of Local Affairs says the decline is due to a drop in oil and natural gas prices. Mayor Keith Lambert of Rifle, a center for drilling, says he didn't expect such an extreme drop in the tax revenue.
Severance taxes go to municipalities for capital projects to offset the impact of drilling.
The Denver Post reports the decline may affect capital construction projects and wildlife and environmental programs the taxes help fund.

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