Rate of Tax; Oil, Gas and Sulfur

 

DEPARTMENT OF REVENUE
Miscellaneous Tax

RULE NO.:RULE TITLE:
12B-7.004Rate of Tax; Oil, Gas and Sulfur

NOTICE OF CHANGE

Notice is hereby given that the following changes have been made to the proposed rule in accordance with subparagraph 120.54(3)(d)1., F.S., published in Vol. 39, No. 4, January 7, 2013 issue of the Florida Administrative Register.

In response to written comments received from the Joint Administrative Procedures Committee, subparagraph 4. of paragraph (c) of subsection (1) of Rule 12B-7.004, F.A.C., has been changed so that, when adopted, that subparagraph will read:

(1) Oil.

(c) Oil produced by tertiary methods and mature field recovery oil is shall be taxed at the following tiered rates on the gross value at the point of production:

1. 1 percent of the gross value of oil $60 and below;

2. 7 percent of the gross value of oil above $60 and below $80;

3. 9 percent of the gross value of oil $80 and above.

4. Example: 200 barrels of oil were produced that had a value of $90 per barrel at the time of production. Tax is calculated as follows:

First Tier:            200 barrels x $60 x 1% = $120

Second Tier:        +  200 barrels x $19.99 $20 x 7% = $279.86 $280

Third Tier:        +  200 barrels x $10.01 $10 x 9% = $180.18 $180

Total Tax Due:           $580.04 $580