Sec. 8. A tax at a rate equal to the greater of:

(1) one percent (1%) of the value of the petroleum; or

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Terms Used In Indiana Code 6-8-1-8

  • natural gas: means petroleum that maintains a gaseous state at atmospheric conditions. See Indiana Code 6-8-1-5
  • oil: means petroleum that maintains a liquid state at atmospheric conditions. See Indiana Code 6-8-1-5
  • petroleum: means all hydrocarbons produced at a well in a liquid or gaseous state. See Indiana Code 6-8-1-5
  • value: means the price paid or offered to be paid for petroleum of a like grade or gravity in the field or pool in which such well is located, and, if no such price be paid or offered, then as determined pursuant to the rules of the department. See Indiana Code 6-8-1-4
(2) three cents ($0.03) per one thousand (1,000) cubic feet (MCF) for natural gas and twenty-four cents ($0.24) per barrel for oil;

is hereby imposed as of the time of the severance of such petroleum from the land, upon all producers and owners thereof as an excise for the privilege of severing the same from the land and producing the same from the well, except when the gas from any well is used to pump or treat the same or when such gas is piped to a landowner’s private buildings for the landowner’s own use.

Formerly: Acts 1947, c.278, s.8. As amended by P.L.109-1988, SEC.12.