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Direct Distribution For Colorado Counties and Municipalities

Program Contact

How the Funds are Distributed
Factor Weights for 2009
MOUs for Alternative Subcounty Distributions

Colorado Employee Residence Reports (CERR)

Past Distributions

Program Contact:

Tamra Hooper
Department of Local Affairs
1313 Sherman Street, Room 521
Denver, CO 80203
303.866.6398
Fax: 303.866.4819
tamra.hooper@state.co.us

How the Funds are Distributed

The Colorado Department of Local Affairs (DOLA) distributes revenue derived from energy and mineral extraction statewide. These revenues come from State Severance Tax receipts and Federal Mineral Lease non-bonus payments.

Senate Bill 08-218 and House Bill 08-1083, which passed in the 2008 state legislative session, made significant changes to the method and process for the distribution of State Severance Tax and Federal Mineral Lease receipts to local governments. The first payments under this new annual distribution method were made in the last week of August 2009.

There are no longer funds distributed based solely on the Colorado Employee Residence Reports (CERR). Additional factors - new well and mine permits, mineral production, population and HUTF road miles - were used to determine the distribution of these revenues to local governments.

PDF | Flowchart of Federal Mineral Lease Distributions
PDF | Flowchart of Severance Tax Distributions

DOLA portion of State Severance Tax

DOLA portion of Federal Mineral Lease

County Pool
Based on statewide share of the
following factors:

  • Colorado Employee Resident Reports (CERR)
  • Mining and Well Permits
  • Mineral Production

County Pool
Based on statewide share of the
following factors:

  • Colorado Employee Resident Reports (CERR)
  • Federal Mineral Lease Revenue Generated

Sub County Pool
County/Municipality split:

  • Colorado Employee Residence Report (CERR)
  • Population
  • Road Miles

Sub County Pool
County/Municipality split:

  • Colorado Employee Residence Report (CERR)
  • Population
  • Road Miles
Annual distribution of
Severance Tax
revenues to
Counties and Municipalities
Annual distribution of
Federal Mineral Lease
revenues to
Counties and Municipalities

 

MOUs for Alternative Subcounty Distributions

Pursuant to C.R.S. 39-29-110(1)(c)(IV) and 34-63-102(5.4)(IV), the Executive Director may accept a memorandum of understanding (MOU) submitted by a county and all municipalities contained therein, which establishes an alternative distribution within the county than would otherwise be determined with the default subcounty factor weights. An MOU must be submitted to the Executive Director for consideration by June 30 th each year. An MOU submitted to the Executive Director for consideration must meet the following requirements.

  1. The MOU shall be signed by each chief elected official of the county and all municipalities contained therein.
  2. The MOU shall indicate whether the agreement applies to the direct distribution of Severance Tax, Federal Mineral Lease, or both.
  3. The MOU shall provide specific information regarding how DOLA shall distribute the county pool. The breakdown of the county pool shall be presented in the MOU in one of two ways:
    1. Alternative weights of the existing factors

      Population
      40%
      Colorado Employee Residence Reports
      40%
      Road Miles
      20%
       
      100%

      2. ~ Or ~

    2. Percentage breakdown of the county pool per entity

      County Government
      25%
      Municipality A
      10%
      Municipality B
      25%
      Municipality C
      40%
       
      100%
  1. A description of the rationale for the methodology used to determine the alternative distribution.

Colorado Employee Residence Reports

PDF | List of active reporting parties who were sent a CERR for 2009
PDF | List of reporting parties reporting no employees for the 2009 reporting year

~ Reports updated on: Monday, August 31st, 2009

The Colorado Employee Residence Report (CERR) is sent each year to companies involved in the production of minerals and mineral fuels as directed by Colorado Revised Statute 39-29-110 (1)(d)(I)(B). The forms are used to determine residence of certain mineral and energy industry workers. This information is then used as part of the basis for State Severance Tax and Federal Mineral Lease direct distribution payments to local governments. The CERR is due by April 30, each year.