Florida Administrative Code
12 - DEPARTMENT OF REVENUE
12B - Miscellaneous Tax
Chapter 12B-7 - SEVERANCE TAXES, FEES, AND SURCHARGES
Section 12B-7.004 - Rate of Tax; Oil, Gas and Sulfur

Universal Citation: FL Admin Code R 12B-7.004

Current through Reg. 50, No. 187; September 24, 2024

(1) Oil.

(a) The amount of tax is measured by the value of oil produced and saved. The rate for oil shall be 8 percent of the gross value thereof at the point of production.

(b) All wells capable of producing less than 100 barrels of oil per day is taxed at the rate of 5 percent of the gross value at the point of production.

(c) Oil produced by tertiary methods and mature field recovery oil is taxed at the following tiered rates on the gross value at the point of production:
1. 1 percent of the gross value of oil $60 and below;

2. 7 percent of the gross value of oil above $60 and below $80;

3. 9 percent of the gross value of oil $80 and above.

4. Example: 200 barrels of oil were produced that had a value of $90 per barrel at the time of production. Tax is calculated as follows:

First Tier: 200 barrels x $60 x 1% = $120

Second Tier: + 200 barrels x $19.99 x 7% = $279.86

Third Tier: + 200 barrels x $10.01 x 9% = $180.18

Total Tax Due: $580.04

(d) Escaped Oil. When a regular monthly report required from a taxpayer does not disclose the actual source of any taxable oil, but does show such oil to have escaped from a well or wells and to have been recovered from streams, lakes, ravines, or other natural depressions, the tax rate is 12 1/2 percent of the gross value of such escaped oil and is in addition to the tax imposed upon oil production.

(2) Gas. The amount of tax is measured by the volume of the gas produced and sold, or used. The rate for gas for each state fiscal year (July through June) is the gas tax rate established by the Department pursuant to Section 211.025, F.S.

(3) Sulfur. The amount of tax shall be measured by the volume of the sulfur produced and sold, or used. The rate for sulfur for each state fiscal year (July through June) is the sulfur tax rate established by the Department pursuant to Section 211.026, F.S.

Rulemaking Authority 211.125(1), 213.06(1) FS. Law Implemented 211.02, 211.025, 211.026, 211.04 FS.

New 12-28-78, Formerly 12B-7.04, Amended 12-18-94, 1-11-10, 5-9-13.

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