CS/HB 515

1
A bill to be entitled
2An act relating to oil and gas production taxes; amending
3s. 211.02, F.S.; providing a tiered tax rate structure for
4the oil production tax on tertiary oil; revising
5definitions; providing an effective date.
6
7Be It Enacted by the Legislature of the State of Florida:
8
9     Section 1.  Section 211.02, Florida Statutes, is amended to
10read:
11     211.02  Oil production tax; basis and rate of tax; tertiary
12oil.--An excise tax is hereby levied upon every person who
13severs oil in the state for sale, transport, storage, profit, or
14commercial use. Except as otherwise provided in this part, the
15tax is levied on the basis of the entire production of oil in
16this state, including any royalty interest. Such tax shall
17accrue at the time the oil is severed and shall be a lien on
18production regardless of the place of sale, to whom sold, or by
19whom used, and regardless of the fact that delivery of the oil
20may be made outside the state.
21     (1)  The amount of tax shall be measured by the value of
22the oil produced and saved or sold during a month. The value of
23oil shall be taxed at the following rates:
24     (a)  Small well oil and tertiary oil, 5 percent of gross
25value.;
26     (b)  Tertiary oil:
27     1.  One percent of the gross value of oil on the value of
28oil $60 dollars and below;
29     2.  Seven percent of the gross value of oil on the value of
30oil above $60 and below $80; and
31     3.  Nine percent of the gross value of oil on the value of
32oil $80 and above.
33     (c)(b)  All other oil, 8 percent of gross value.
34     (2)(a)  For the purposes of this section, "value" means the
35sale price or market price of a barrel of oil at the mouth of
36the well in its natural, unrefined condition. If the oil is
37exchanged for something other than cash, if there is no sale at
38the mouth of the well, or if the sale price is not indicative of
39the true value or market price of the oil produced, value shall
40be determined by the sale price of oil of like kind and quality,
41considering any differences in the place of production or sale.
42     (b)  Any charges prepaid by the producer or included in the
43invoice price for delivery of the oil shall be deducted from the
44gross proceeds of the sale which are used to determine the value
45of oil produced, provided the oil was sold at a delivered price.
46     (c)  The value of oil produced shall not include any
47wellhead or other production taxes imposed by the United States
48on the producer, to the extent that such taxes do not provide a
49credit or deduction for the tax imposed under this part.
50     (3)(a)  The term "tertiary oil" means the excess barrels of
51oil produced, or estimated to be produced, as a result of the
52actual use of a tertiary recovery method methods in a qualified
53enhanced oil tertiary recovery project, over the barrels of oil
54which could have been produced by continued maximum feasible
55production methods in use prior to the start of tertiary
56recovery. A "qualified enhanced oil tertiary recovery project"
57means a project for enhancing recovery of oil which meets the
58requirements of 26 U.S.C. s. 43(c)(2) s. 4993(c), Internal
59Revenue Code of 1954, as amended, or substantially similar
60requirements.
61     (b)  The department may establish the method to be used by
62producers to determine the taxable production of tertiary oil
63and may require a producer or operator to furnish any
64information the department deems necessary for this purpose.
65     (4)  Oil production shall be measured or gauged. Mechanical
66metering systems using meters of a type generally approved for
67use in the industry may be used to measure oil production. If
68tank tables are used to determine oil production, tables
69compiled to show 100 percent of the full capacity of tanks,
70without deduction for overage or losses in handling, shall be
71used; or the oil production shall be adjusted to a basis of 100
72percent of the full capacity of tanks if oil production is
73determined using tank tables compiled to show less than 100
74percent of the full capacity of tanks. Oil production shall be
75expressed in barrels.
76     (5)  The tax imposed under this section shall be
77administered, collected, and enforced by the department.
78     Section 2.  This act shall take effect July 1, 2009.
79


CODING: Words stricken are deletions; words underlined are additions.