1 | Representative Evers offered the following: |
2 |
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3 | Amendment (with title amendment) |
4 | Remove everything after the enacting clause and insert: |
5 | Section 1. Section 211.02, Florida Statutes, is amended to |
6 | read: |
7 | 211.02 Oil production tax; basis and rate of tax; tertiary |
8 | oil.--An excise tax is hereby levied upon every person who |
9 | severs oil in the state for sale, transport, storage, profit, or |
10 | commercial use. Except as otherwise provided in this part, the |
11 | tax is levied on the basis of the entire production of oil in |
12 | this state, including any royalty interest. Such tax shall |
13 | accrue at the time the oil is severed and shall be a lien on |
14 | production regardless of the place of sale, to whom sold, or by |
15 | whom used, and regardless of the fact that delivery of the oil |
16 | may be made outside the state. |
17 | (1) The amount of tax shall be measured by the value of |
18 | the oil produced and saved or sold during a month. The value of |
19 | oil shall be taxed at the following rates: |
20 | (a) Small well oil and tertiary oil, 5 percent of gross |
21 | value.; |
22 | (b) Tertiary oil: |
23 | 1. One percent of the gross value of oil on the value of |
24 | oil $60 dollars and below; |
25 | 2. Seven percent of the gross value of oil on the value of |
26 | oil above $60 and below $80; and |
27 | 3. Nine percent of the gross value of oil on the value of |
28 | oil $80 and above. |
29 | (c)(b) All other oil, 8 percent of gross value. |
30 | (2)(a) For the purposes of this section, "value" means the |
31 | sale price or market price of a barrel of oil at the mouth of |
32 | the well in its natural, unrefined condition. If the oil is |
33 | exchanged for something other than cash, if there is no sale at |
34 | the mouth of the well, or if the sale price is not indicative of |
35 | the true value or market price of the oil produced, value shall |
36 | be determined by the sale price of oil of like kind and quality, |
37 | considering any differences in the place of production or sale. |
38 | (b) Any charges prepaid by the producer or included in the |
39 | invoice price for delivery of the oil shall be deducted from the |
40 | gross proceeds of the sale which are used to determine the value |
41 | of oil produced, provided the oil was sold at a delivered price. |
42 | (c) The value of oil produced shall not include any |
43 | wellhead or other production taxes imposed by the United States |
44 | on the producer, to the extent that such taxes do not provide a |
45 | credit or deduction for the tax imposed under this part. |
46 | (3)(a) The term "tertiary oil" means the excess barrels of |
47 | oil produced, or estimated to be produced, as a result of the |
48 | actual use of a tertiary recovery method methods in a qualified |
49 | enhanced oil tertiary recovery project, over the barrels of oil |
50 | which could have been produced by continued maximum feasible |
51 | production methods in use prior to the start of tertiary |
52 | recovery. A "qualified enhanced oil tertiary recovery project" |
53 | means a project for enhancing recovery of oil which meets the |
54 | requirements of 26 U.S.C. s. 43(c)(2) s. 4993(c), Internal |
55 | Revenue Code of 1954, as amended, or substantially similar |
56 | requirements. |
57 | (b) The department may establish the method to be used by |
58 | producers to determine the taxable production of tertiary oil |
59 | and may require a producer or operator to furnish any |
60 | information the department deems necessary for this purpose. |
61 | (4) Oil production shall be measured or gauged. Mechanical |
62 | metering systems using meters of a type generally approved for |
63 | use in the industry may be used to measure oil production. If |
64 | tank tables are used to determine oil production, tables |
65 | compiled to show 100 percent of the full capacity of tanks, |
66 | without deduction for overage or losses in handling, shall be |
67 | used; or the oil production shall be adjusted to a basis of 100 |
68 | percent of the full capacity of tanks if oil production is |
69 | determined using tank tables compiled to show less than 100 |
70 | percent of the full capacity of tanks. Oil production shall be |
71 | expressed in barrels. |
72 | (5) The tax imposed under this section shall be |
73 | administered, collected, and enforced by the department. |
74 | Section 2. This act shall take effect July 1, 2009. |
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78 | T I T L E A M E N D M E N T |
79 | Remove the entire title and insert: |
80 | A bill to be entitled |
81 | An act relating to oil and gas production taxes; amending |
82 | s. 211.02, F.S.; providing a tiered tax rate structure for |
83 | the oil production tax on tertiary oil; revising |
84 | definitions; providing an effective date. |