La. Admin. Code tit. 43 § I-1701

Current through Register Vol. 50, No. 6, June 20, 2024

Section I-1701 - Rules for Claiming Severance Tax Exemption under Act 673 of 1986 (R.S. 47:648.1)

A.R.S. 47:648.1 established a qualified severance tax exemption on the first 10,000 barrels of oil produced annually from a well which is drilled between July 15, 1986 and July 15, 1987. This exemption is qualified in that it applies only to the first 50 barrels of oil removed from the ground in each day, although the 10,000 barrel limitation is calculated from the total production of the well. This exemption may be claimed from the date of first production from each well until July 15, 1990, except for months when the value of oil, as reported to the Department of Revenue and Taxation under R.S. 47:633(7), exceeds $21 per barrel.

B. The tax exemption does not apply to:

1. condensate, distillate, or similar natural resources produced from a well classified as a gas well by the assistant secretary of the Office of Conservation;

2. casinghead gas produced with oil from a well drilled between July 15, 1986 and July 15, 1987;

3. oil from a well on which drilling began prior to July 15, 1986;

4. oil from a well on which drilling is done after July 15,1987;

5. oil from a well with a price per barrel greater than $21 as reported under R.S. 47:633(7);

6. oil from a well following, or in excess of, the first 50 barrels produced on any day;

7. oil from a well following, or in excess of, the first 10,000 barrels produced in any year.

C. The Department of Revenue and Taxation will provide forms for claiming the severance tax exemption, together with instructions. The amount of exempt production will be reported each month by the producer of the oil. A copy of the producer's report will be provided by the producer to the party remitting the taxes. The taxpayer will report the exempt sales on the SEV Old under Tax Rate 7, or upon such other forms as may be specified by the Department of Revenue and Taxation. No production shall be exempt from severance taxes unless the taxpayer first provides an Office of Conservation certification that the well qualifies for the exemption, to the Department of Revenue and Taxation.

La. Admin. Code tit. 43, § I-1701

Promulgated by the Department of Natural Resources, Office of the Secretary, LR 12:771 (November 1986).

AUTHORITY NOTE: Promulgated in accordance with R.S. 47:648.11.