By Christie Southern & Shawn Ashley Lawmakers send gross production tax measure to Fallin The House and Senate approved a measure Thursday that would set the gross production tax rate on newly drilled wells at 2 percent for their first 36 months of production. That is an increase from the current rate of 1 percent for the first 48 months of production for deep and horizontally drilled wells but a decrease from 7 percent for conventionally drilled wells. The conference committee report for HB2562, by Rep. Jeff Hickman, R-Dacoma and Sen. Rob Johnson, R-Kingfisher, lowers the gross production tax rate for all forms of oil and natural gas production after July 1, 2015, from 7 percent to 2 percent for the first 36 months of production until July 1, 2020. The bill provides that gross production tax on all forms of oil and natural gas production will be 7 percent after the first 36 months of production. The bill establishes procedures and limitation on refunds. The bill establishes an apportionment schedule for revenue from the 2 percent gross production tax that calls for 50 percent to be deposited in the General Revenue Fund; 25 percent to the County Highway Fund; and 25 percent to be allocated to each county to be apportioned to schools based on a specific formula. The bill removes outdated language. The bill was debated in both the House and the Senate. The bill passed the House by a vote of 61 to 34 and the emergency passed 68 to 23. It passed the Senate 30 to 14 and the emergency clause passed 35 to 9. Its Senate and final passage came after it nearly was sent back to conference committee but was saved by Lt. Gov. Todd Lamb, who cast the deciding vote as president of the Senate.
Posted on: Fri, 23 May 2014 00:22:02 +0000
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