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2001 SESSION

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HB 2526 Local gas severance taxes.

Introduced by: Clarence E. (Bud) Phillips | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Local severance taxes. Authorizes counties and cities to impose an additional local severance tax on persons engaging in the business of severing gases from the earth. A county or city may impose this additional tax at a rate not to exceed one percent of the gross receipts from the sale of gases severed within the county or city. The effective date of the bill is July 1, 2001, and the increase is applicable for license years beginning on or after January 1, 2001. By statute, in calendar year 2001 most taxpayers will be required to pay their local Business, Professional and Occupational Licensing Tax and severance taxes on March 1. At least one-half of the revenues from this increase shall be used for constructing new and improved water systems and lines in areas with natural water supplies that are insufficient in quality or quantity. The bill also provides that the fair market value of gases sold outside the county or city shall be measured at the time such gases are severed from the earth at a wellhead. This bill would increase the license tax rate that counties and cities may currently levy on businesses severing gases from three percent to four percent.


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