It is an ad valorem (in proportion to the value) tax on the assessed value of equipment at each production unit.
What is the purpose of the oil and gas production equipment ad valorem tax?
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Oil and Gas Production Taxes
On what is the oil and gas production equipment ad valorem tax imposed?
The tax is imposed on the assessed value of products severed and sold from each production unit at a rate certified to TRD.
What is the oil and gas production equipment ad valorem tax rate?
Per statute, the Department of Finance and Administration certifies the tax rate that is used on the tax statement/assessment to the operators of the property.
Are there any tax incentives related to the oil and gas production equipment ad valorem tax program?
No.
Are there any tax credits related to the oil and gas production equipment ad valorem tax program?
A taxpayer may qualify for a credit against current production equipment ad valorem taxes if the products are severed from Indian tribal land or if tax is imposed on the privilege of severing products from Indian tribal land. This credit is called the...
What is the due date for the oil and gas production equipment ad valorem tax?
TRD sends the tax statement and assessment to the operator of record on or before October 15. Payment due on or before November 30.
How is the intergovernmental tax credit recognized?
Oil & Gas Production Taxes The tax credit applies only to “qualifying wells.” It is calculated each month by product and production unit at 75% of the lesser of: either the aggregate amount of severance, privilege, ad valorem or similar tax in effect...