GROSS PRODUCTION TAXES
HB 1010XX – Effective June 28, 2018
Sections 7 and 8 amend the gross production incentive tax rate levied at two percent (2%). The measure increases this incentive rate to five percent (5%).
Previously, the incentive levy of two percent (2%) was applicable to the production of oil and/or natural gas produced from wells that were drilled beginning July 1, 2015. The two percent (2%) rate was effective for the first thirty-six (36) months of production. Thereafter, the rate increased to seven percent (7%).
The measure increases the incentive levy to five percent (5%) for all new and existing wells that qualified for the reduced incentive rate of two percent (2%). The amendment becomes effective with the production month of July 2018, resulting in increased revenue collections occurring in September 2018. The measure does not change the thirty-six (36) month term period.
Thank you for your attention to these changes.
Please refer to the enrolled legislation on the Oklahoma Legislature page for complete details. Click here to search.