Repeal Severance Tax Exemption for Stripper Wells

This bill eliminates the state severance tax exemption currently granted to stripper wells, which are low-producing oil and gas wells that extract fifteen barrels of oil or ninety thousand cubic feet of gas per day or less. By removing this exemption, the legislation requires operators of these wells to pay the same severance tax rates as higher-producing wells, with the collected revenue distributed between the state and local governments. The measure also adjusts related tax credits to ensure that stripper wells no longer receive preferential treatment under Colorado's existing tax code.