State

Jun 15, 2011 2:38 PM by AP Posted by James H Egbert

Fracking tax mix up costing Garfield Co. millions

GLENWOOD SPRINGS, Colo. (AP) - Officials in western Colorado say a tax collections mistake on materials used to hydraulically fracture shale is costing them millions.

The Post Independent reported Wednesday that Garfield County officials say state revenue collectors overcollected taxes from energy development firms from 2002 to 2005.

The taxing discrepancy was discovered in 2008, prompting several energy companies to file claims for the overpaid amounts.

At issue are materials used in "fracking" fluids, such as sand and chemicals, which are blasted into the ground to release natural gas.

An appeals court said they are part of services providing by the fracking companies, and energy companies shouldn't be taxed for them.

Garfield County is paying back more than half of the almost $4 million hit by drawing from their general fund.

(Copyright 2011 by The Associated Press. All Rights Reserved.)

 

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