Florida Regulations 12B-7.004: Rate of Tax; Oil, Gas and Sulfur
Current as of: 2024 | Check for updates
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(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:
(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: