State Supreme Court Ruling

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It's a major victory for energy companies doing business in Colorado.

The state Supreme Court issued a ruling this week that enables the industry to deduct costs related to gathering, processing and transporting oil from wells before it pays taxes on oil sales.

The ruling involves Washington County and the two-person Denver firm, Petron Development Corporation -- but the ruling could apply statewide.

County officials say they fear energy companies may claim millions of dollars in tax refunds for previous years when they didn't deduct the costs before paying local taxes.

And companies will save millions by deducting those costs from the assessed value of sales.