Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 978
       
       
       
       
       
       
                                Barcode 464628                          
       
                              LEGISLATIVE ACTION                        
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       The Committee on Finance and Tax (Altman) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5  
    6         Section 1. Section 211.02, Florida Statutes, is amended to
    7  read:
    8         211.02 Oil production tax; basis and rate of tax; tertiary
    9  oil.—An excise tax is hereby levied upon every person who severs
   10  oil in the state for sale, transport, storage, profit, or
   11  commercial use. Except as otherwise provided in this part, the
   12  tax is levied on the basis of the entire production of oil in
   13  this state, including any royalty interest. Such tax shall
   14  accrue at the time the oil is severed and shall be a lien on
   15  production regardless of the place of sale, to whom sold, or by
   16  whom used, and regardless of the fact that delivery of the oil
   17  may be made outside the state.
   18         (1) The amount of tax shall be measured by the value of the
   19  oil produced and saved or sold during a month. The value of oil
   20  shall be taxed at the following rates:
   21         (a) Small well oil and tertiary oil, 5 percent of gross
   22  value.;
   23         (b)Tertiary oil:
   24         1.Five percent of gross value for oil having a value of
   25  $80 per barrel or more;
   26         2.Three percent of gross value for oil having a value of
   27  $60 but less than $80 per barrel; and
   28         3.One percent of gross value for oil having a value less
   29  than $60 per barrel.
   30         (c)(b) All other oil, 8 percent of gross value.
   31         (2)(a) For the purposes of this section, “value” means the
   32  sale price or market price of oil at the mouth of the well in
   33  its natural, unrefined condition. If the oil is exchanged for
   34  something other than cash, if there is no sale at the mouth of
   35  the well, or if the sale price is not indicative of the true
   36  value or market price of the oil produced, value shall be
   37  determined by the sale price of oil of like kind and quality,
   38  considering any differences in the place of production or sale.
   39         (b) Any charges prepaid by the producer or included in the
   40  invoice price for delivery of the oil shall be deducted from the
   41  gross proceeds of the sale which are used to determine the value
   42  of oil produced, provided the oil was sold at a delivered price.
   43         (c) The value of oil produced shall not include any
   44  wellhead or other production taxes imposed by the United States
   45  on the producer, to the extent that such taxes do not provide a
   46  credit or deduction for the tax imposed under this part.
   47         (3)(a) The term “tertiary oil” means the excess barrels of
   48  oil produced, or estimated to be produced, as a result of the
   49  actual use of a tertiary recovery method methods in a qualified
   50  enhanced oil tertiary recovery project, over the barrels of oil
   51  which could have been produced by continued maximum feasible
   52  production methods in use prior to the start of tertiary
   53  recovery. A “qualified enhanced oil tertiary recovery project”
   54  means a project for enhancing recovery of oil which meets the
   55  requirements of 26 U.S.C. s. 43(c)(2) s. 4993(c), Internal
   56  Revenue Code of 1954, as amended, or substantially similar
   57  requirements.
   58         (b) The department may establish the method to be used by
   59  producers to determine the taxable production of tertiary oil
   60  and may require a producer or operator to furnish any
   61  information the department deems necessary for this purpose.
   62         (4) Oil production shall be measured or gauged. Mechanical
   63  metering systems using meters of a type generally approved for
   64  use in the industry may be used to measure oil production. If
   65  tank tables are used to determine oil production, tables
   66  compiled to show 100 percent of the full capacity of tanks,
   67  without deduction for overage or losses in handling, shall be
   68  used; or the oil production shall be adjusted to a basis of 100
   69  percent of the full capacity of tanks if oil production is
   70  determined using tank tables compiled to show less than 100
   71  percent of the full capacity of tanks. Oil production shall be
   72  expressed in barrels.
   73         (5) The tax imposed under this section shall be
   74  administered, collected, and enforced by the department.
   75  
   76  ================= T I T L E  A M E N D M E N T ================
   77         And the title is amended as follows:
   78         Delete everything before the enacting clause
   79  and insert:
   80  
   81                        A bill to be entitled                      
   82         An act relating to oil and gas production taxes;
   83         amending s. 211.02, F.S.; providing a tiered tax rate
   84         structure for the oil production tax on tertiary oil;
   85         revising definitions; providing an effective date.