Gross Production Monthly Rates
Oil: The Gross Production Tax rate is 7percent times the taxable value with the exceptions listed below:
- Production Month: January - March 1999 = 1percent
- Production Month: April - June 1999 = 4 percent
Gas: The Gross Production Tax rate is 7percent times the taxable value with the exceptions listed below:
- No exceptions at this time.
An excise tax (petroleum excise tax) is also due on all oil and gas products produced in Oklahoma. The PE tax rate is 0.095 percent (multiply 0.00095) of the same taxable value used to compute the Gross Production Tax.
To All Remitters of Gross Production Tax:
Oklahoma Gross Production tax levied on both oil and gas produced in Oklahoma is now a variable rate tax. Legislation passed and approved in 1999 established a variable rate Gross Production Tax on oil beginning with January 1999 production month. Legislation recently passed provides for a variable rate Gross Production Tax on gas to become effective with July 2002 production month.
The Gross Production Tax rate for both products is based upon the average monthly product price as determined by the Tax Commission.
Oil...
The Gross Production Tax rate on oil is as follows:
- If the average price of Oklahoma oil equals or exceeds Seventeen Dollars ($17.00) per barrel, the tax shall be seven percent (7%).
- If the average price of Oklahoma oil is less than Seventeen Dollars ($17.00) but is equal to or exceeds Fourteen Dollars ($14.00) per barrel, then the tax shall be four percent (4%).
- If the average price of Oklahoma oil is less than Fourteen Dollars ($14.00) per barrel, then the tax shall be one percent (1%).
Gas...
The Gross Production Tax rate on gas is as follows:
- If the average price of Oklahoma gas equals or exceeds Two Dollars and Ten Cents ($2.10) per mcf, the tax shall be seven percent (7%).
- If the average price of Oklahoma gas is less than Two Dollars and Ten Cents ($2.10) but is equal to or exceeds One Dollar and Seventy Five Cents ($1.75) per mcf, then the tax shall be four percent (4%).
- If the average price of Oklahoma gas is less than One Dollar and Seventy-Five Cents ($1.75) per mcf, then the tax shall be one percent (1%).
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