Gas and oil production tax bill advances out of committee after late night meeting
A bill that would increase the rate of taxes on oil and gas production from horizontally drilled wells was advanced by a house committee late Monday night.
The bill, HB 2429, would change the incentive rate for wells that started producing between 7/1/2011-7/1/2015 from one percent to four percent, until the well’s incentive period expires after 48 months. After 48 months, the tax on the wells would increase to seven percent.
“As these wells fall off (the incentive window of 48 months) they will no longer be at four percent, they will be at seven percent,” said Rep. Kevin Wallace, R-Wellston, co-chair of the Joint Committee on Appropriations and Budget.
The Tax Commission estimates the 5,790 wells that would be affected by the change would bring in approximately $95.3 million in revenue.
Written by Bill Miston for KFOR.com