Court Referee Hears Arguments On GP Tax Deal
Oil and gas well tax change unconstitutional, lawyer tells state Supreme Court referee
By BARBARA HOBEROCK World Capitol Bureau
OKLAHOMA CITY — A recently enacted law setting a tax rate for some oil and gas wells is unconstitutional, an Oklahoma Supreme Court referee was told Tuesday.
Supreme Court referee Daniel Karim heard oral arguments in Oklahoma City attorney Jerry Fent’s challenge to House Bill 2562.
The measure provides for a 2 percent tax rate for all new oil and gas wells for 36 months of production. It applies to vertical and horizontal wells.
It increases the rate from 1 percent, which had only been applied to horizontal wells. The old rate was set to expire July 1, 2015, resulting in an increase to 7 percent.