Montana Code 15-36-302. Legislative findings and declaration of purpose
15-36-302. Legislative findings and declaration of purpose. (1) (a) The legislature finds that the extraction taxes imposed on the production of oil and natural gas have been exceedingly complex and confusing. Oil and natural gas producers have been required to file several tax forms and to pay taxes at different times on the same production.
Terms Used In Montana Code 15-36-302
- gas: means all natural gases, hydrocarbon gases, all forms of inert gas, and all other fluid hydrocarbons as produced at the wellhead and not defined as oil under 82-1-111. See Montana Code 15-36-303
- Oil: means crude petroleum or mineral oil and other hydrocarbons, regardless of gravity, that are produced at the wellhead in liquid form and that are not the result of condensation of gas after it leaves the wellhead. See Montana Code 15-36-303
- Several: means two or more. See Montana Code 1-1-201
- State: when applied to the different parts of the United States, includes the District of Columbia and the territories. See Montana Code 1-1-201
(b)The legislature further finds that it is in the best interest of the state and in the best interest of oil and gas producers to simplify the taxation of oil and natural gas production.
(2)The legislature declares that the purposes of this part are:
(a)to replace all net proceeds taxes, severance taxes, privilege and license taxes, and other extraction taxes on oil and natural gas production with a single production tax based on the type of well and type of production;
(b)to ensure that the distribution of tax revenue to the state, counties, and school districts from the new production taxes is consistent with the distribution of tax revenue from the former extraction taxes;
(c)to simplify the procedures for compliance with and the administration of the taxation of oil and natural gas production;
(d)to provide an incentive for oil and natural gas producers to pay 1995 local government severance taxes on an accelerated basis; and
(e)to provide discretionary authority to counties and school districts for the use of the accelerated payments of the local government severance tax.