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BILL NAME

AUTHOR

PROGRESS

HB 506: Reduces the Severance Tax Rate for Oil Over a Certain Period of Time and Clarifies the Severance Tax Rate for Oil Produced from Certain Incapable Wells

Highlights

Reduces the severance tax rate on oil over an eight-year period from 12.5% to 8.5% of its value at the time and place of severance and clarifies the severance tax rate for oil produced from certain incapable wells.

Proposed law reduces the tax rate on oil over an eight-year period from 12.5% as follows:

(1) Beginning July 1, 2021, through June 30, 2022, to 12%.

(2) Beginning July 1, 2022, through June 30, 2023, to 11.5%.

(3) Beginning July 1, 2023, through June 30, 2024, to 11%.

(4) Beginning July 1, 2024, through June 30, 2025, to 10.5%.

(5) Beginning July 1, 2025, through June 30, 2026, to 10%.

(6) Beginning July 1, 2026, through June 30, 2027, to 9.5%.

(7) Beginning July 1, 2027, through June 30, 2028, to 9%.

(8) Beginning July 1, 2028, and thereafter, to 8.5%.

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For more information on this bill or to learn more about its author, visit the Legislature’s page here.

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