Gross Production Tax

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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 plan would increase gross production taxes to 5 percent during the incentive period, and it would maintain the 36-month duration.
9-percent growth in gross production taxes to a decrease of 7.
Gross production taxes charge companies a percentage of the revenue each barrel generates.
They did the same thing in May to usher in an increase in gross production taxes on oil and gas.