| 1 | A bill to be entitled |
| 2 | An act relating to the tax on severance and production |
| 3 | of oil; amending s. 211.02, F.S.; defining the term |
| 4 | "mature field recovery oil" and applying to such oil |
| 5 | the tiered severance tax rates applicable to tertiary |
| 6 | oil; providing an effective date. |
| 7 |
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| 8 | Be It Enacted by the Legislature of the State of Florida: |
| 9 |
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| 10 | Section 1. Paragraph (b) of subsection (1) of section |
| 11 | 211.02, Florida Statutes, is amended, present subsections (4) |
| 12 | and (5) of that section are renumbered as subsections (5) and |
| 13 | (6), respectively, and a new subsection (4) is added to that |
| 14 | section, to read: |
| 15 | 211.02 Oil production tax; basis and rate of tax; tertiary |
| 16 | oil and mature field recovery oil.-An excise tax is hereby |
| 17 | levied upon every person who severs oil in the state for sale, |
| 18 | transport, storage, profit, or commercial use. Except as |
| 19 | otherwise provided in this part, the tax is levied on the basis |
| 20 | of the entire production of oil in this state, including any |
| 21 | royalty interest. Such tax shall accrue at the time the oil is |
| 22 | severed and shall be a lien on production regardless of the |
| 23 | place of sale, to whom sold, or by whom used, and regardless of |
| 24 | the fact that delivery of the oil may be made outside the state. |
| 25 | (1) The amount of tax shall be measured by the value of |
| 26 | the oil produced and saved or sold during a month. The value of |
| 27 | oil shall be taxed at the following rates: |
| 28 | (b) Tertiary oil and mature field recovery oil: |
| 29 | 1. One percent of the gross value of oil on the value of |
| 30 | oil $60 dollars and below; |
| 31 | 2. Seven percent of the gross value of oil on the value of |
| 32 | oil above $60 and below $80; and |
| 33 | 3. Nine percent of the gross value of oil on the value of |
| 34 | oil $80 and above. |
| 35 | (4) As used in this section, the term "mature field |
| 36 | recovery oil" means the barrels of oil recovered from new wells |
| 37 | that begin production after July 1, 2012, in fields that were |
| 38 | discovered prior to 1981. |
| 39 | Section 2. This act shall take effect July 1, 2012. |