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.
References in periodicals archive ?
The money comes from oil and gas gross production tax revenues.
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.
Also, portions of the gross production tax are returned to counties, cities, and school districts within the producing counties.
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.