Natural Gas Production Tax

at a glance...

Description

A tax is imposed on the market value of gas produced and saved in the state by the producer.

Note: Reduced Gas Production Tax Rates for Certified Exemptions: Incremental Production Exemption 3.75% (.0375) of market value of gas; 3 Year and 2 Year Inactive Well Exemptions 0.0% of market value of gas; Co-Production Project Exemption 0.0% of market value of gas; High-Cost Gas Exemption 0.0% of market value of gas; High-Cost Gas Reduced Tax Rate 0.0% to 7.4% (.000 to .074) of the market value of gas, the rate varies by well depending on how the well's drilling and completion costs compare to the median cost of all High-Cost gas wells (previous State fiscal year); Flared Gas Exemption 0.0% (.000) of market value of gas.

Due Date

Monthly: 20th day of the 2nd month following the production month. Yearly, if qualified: February 20, for preceding year.

Rate

Gas: 7.5% (.075) of market value of gas.

Condensate Production Tax: 4.6% (.046) of market value of gas.

Regulatory Fee: For report period prior to September 2001, 1/30 of a cent (.000333) for thousand cubic feet of gas produced. For report periods September 2001 and later, .000667 for thousand cubic feet of gas produced.

Electronic Reporting

Yes - See left column.

Toll-Free Number

(800) 252-1384