Oil Well Service Tax

at a glance...

Description

A tax is imposed on anyone in the business of providing certain well services, and who:

• owns, controls, or furnishes the tools, instruments, and equipment used in providing well service; or
• uses any chemical, electrical, or mechanical process in providing service at any oil or gas well during the drilling and completion, or reworking or reconditioning, of the oil or gas well.

Taxable services include:

• Cementing the casing seat
• Shooting the formation
• Fracturing the formation
• Acidizing the formation
• Surveying or testing the formation

Due Date

Monthly: 20th day of the month following the end of each calendar month.

Rate

2.42% (.0242) of taxable services.

Electronic Reporting

Not at this time.

Toll-Free Number

(800) 531-5441