Gross Production Tax

Gross Production Tax

In the United States, a tax levied by some individual states on mining and drilling companies on the value of what is mined or drilled. For example, the State of Oklahoma levies a gross production tax on oil companies equal to 7% of the value of oil drilled from the ground. Gross production taxes are generally deductible from federal taxes.
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He said the momentum behind the teacher walkout is also putting pressure on those who oppose raising the gross production tax on oil and gas and that it is amplifying those who support nixing the incentive period, restoring the beginning rate to 7 percent.
Increasing the oil and gas gross production tax by increasing the rate on wells currently at 2 percent to 4 percent, and all future wells will begin at 4 percent for 36 months and move to 7 percent thereafter;
These positive results are offset by gross production tax revenue that were down by 83.
These revenue streams include state energy taxes (oil and gas gross production tax and oil extraction tax), royalties on production from state-owned lands, royalties retained by county governments on some Federal lands, portions of Federal royalties returned to the state and counties from oil and gas production on Federal lands, and revenues from Federal mineral leases and bonuses.
Oklahoma charges a gross production tax, which is levied as a percentage of each barrel's worth.
The money comes from oil and gas gross production tax revenues.
Imperial believes that the Company will benefit from a recent extension to the Gross Production Tax rebate to the calendar years 2011, 2012 & 2013 and legislation providing for a tax credit for horizontal and deep wells recently passed by the Oklahoma legislature.
Senate Minority Leader John Sparks introduced SJR 35, which would create a trust for gross production tax revenues.
The $44 million revenue plan hassimilarcomponents to last year's, Step Up Oklahoma's, and the Oklahoma Council of Public Affairs' plans: motor fuels tax increases, gross production tax increases and cigarette tax increases.
Cory Williams, D-Stillwater, has consistently criticized policies that would increase gross production tax incentive rates to 4 percent for 36 months, saying that his constituents push for an end to incentive rates altogether.
Along with increases on cigarettes and motor fuel taxes, the package would raise the initial gross production tax on oil and gas wells from 2 to 4 percent and makes various changes to the individual income tax that would primarily increase taxes for the wealthiest.
House Democrats wouldnt sign off on a tax plan unless Republicans balanced regressive tax increases with a hike on gross production tax rates.