Oil & Gas

The oil and gas gross production tax is imposed in lieu of property taxes on oil and gas producing properties.

Oil
A 5% rate is applied to the gross value at the well of all oil produced, except royalty interest in oil produced from a state, federal or municipal holding and from an American Indian holding within the boundary of a reservation.

Gas
The gross production tax on gas is an annually adjusted flat rate per mcf of all nonexempt gas produced in the state. The annual adjustments are made according to the average producer price index for gas fuels.

Oil Extraction Tax
The oil extraction tax is levied on the extraction of oil from the earth.