Crude Oil Production Tax

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Low Producing Well Exemption
Incremental Production Credit History
- Incremental Production Credit Suspension Letter (06/02/2003 pdf)
- Reinstatement of Tax Credit for Incremental Production Techniques(12/31/2001 pdf)
June 2007 Crude Oil and Natural Gas System Rewrite Notification

Revenue and Budget Information

Texas Revenue History by Source

at a glance...

Description

A tax is imposed on the production of crude oil in Texas at its market value.

Due Date

Monthly: 25th day of the month following the production month.

Rate

Oil production tax: 4.6% (.046) of market value of oil.
Reduced Oil Production Tax Rates for Certified Exemptions: Enhanced Oil Recovery Exemption (EOR) 2.3% (.023) of market value of oil; Incremental Production Exemption 2.3% (.023) of market value of oil; Co-Production Project Exemption 2.3% (.023) of market value of oil; Three Year and Two Year Inactive Well Exemptions 0.0% (.000) of market value of oil.
Regulatory Tax: 3/16 of a cent ($.001875) per barrel.
Regulatory Fee: 5/16 of a cent ($.003125) per barrel for report periods prior to September 2001. For report periods September 2001 and later, 5/8 of a cent ($0.00625) per barrel

Electronic Reporting

Yes - see left column.

Toll-Free Number

(800) 252-1384

Susan Combs
Texas Comptroller of Public Accounts

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