Okla. Admin. Code § 710:45-9-102

Current through Vol. 42, No. 4, November 1, 2024

Section 710:45-9-102 - Qualifying criteria

Qualified deductions of marketing costs shall comply with the provisions of (1) through (4) of this Subsection. The marketing cost deduction may be disallowed by the Tax Commission for failure to submit sufficient documentation to support the deduction.

(1) Marketing costs shall not include any costs incurred in the production of gas, oil or condensate or in the separation therefrom of any product subject to gross production tax.

(2) Taxes shall be computed on gross proceeds, including tax reimbursement, less the cost of gathering, compressing and treating the gas sold.

(3) Invoices for all costs claimed shall be made available upon request and must clearly indicate the facility incurring the cost and include a detailed description of the cost. If the invoice does not specify the cost was incurred on allowable marketing equipment, a job/work ticket must accompany the invoice describing the work that was done.

(4) Any claimed depreciable equipment must be supported by documentation showing the original depreciable value. If the depreciable equipment was purchased, the original invoice is required. If the depreciable equipment was obtained through an acquisition of wells, documents from the acquisition indicating how the value of the depreciable equipment was determined must be provided.

Okla. Admin. Code § 710:45-9-102

Added at 25 Ok Reg 2039, eff 7-1-08

Amended by Oklahoma Register, Volume 38, Issue 23, August 16, 2021, eff. 9/1/2021