House To Take Up Production Tax Within Days
Gross production tax bill heads to Oklahoma House after panels’ approval
by Adam Wilmoth
A bill that would set the gross production tax rate on oil and natural gas wells at 2 percent for the first 36 months of production is expected to reach the state House of Representatives late Wednesday or early Thursday.
House Bill 2562 would affect the early production of vertical and horizontal wells throughout the state. After three years, the wells’ remaining production would be taxed at 7 percent.
The bill on Tuesday was approved by conference committees in both chambers. The Senate committee approved the bill after 7 p.m. Tuesday.
The full House must wait 24 hours before taking up the measure.
The bill would eliminate drilling tax credits, including those for the state’s deepest wells and for three-dimensional seismic activity.