ADOR - Oil & Gas Severance Tax Summary of Production & Privilege Tax Rates

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ALABAMA OIL AND GAS SEVERANCE TAX SUMMARY OF
PRODUCTION AND PRIVILEGE TAX RATES

PRODUCTION TAX TITLE 9, CHAPTER 17 SECTIONS 25-35		REDUCED PRIVILEGE TAX TITLE 40, CHAPTER 20 ARTICLE 1, SECTION 2(a)(8)
1%	1.66%	2%	3%
Production from wells permitted from 7/01/96 thru 6/30/2002 for five years from first production.	Gross proceeds from offshore production from depths greater than 8,000 feet below mean sea level.	Wells normally qualifying for the 4% privilege tax rate and permitted from 7/01/96 thru 7/01/2002 for five years from first production	Wells normally qualifying for the 6% privilege tax rate and permitted from 7/01/96 thru 7/01/2002 for five years from first production
2%
All other production
PRIVILEGE TAX TITLE 40, CHAPTER 20 ARTICLE 1 & 1A, SECTIONS 2 & 21, respectively
4%	6%		8%
Offshore wells producing 200 MCF or 25 BBLs or less per day at depths less than 8,000 feet. Oil wells producing 25 BBLs or less per day. Gas wells producing 200 MCF or less per day. Incremental production from qualified enhanced recovery projects and supplemental enhanced recovery projects approved by the State Oil and Gas Board.	Offshore wells producing greater than 200 MCF or 25 BBls per day at depths less than 8,000 feet. Wells permitted 7/01/88 or later.		All other taxable production.
	3.65%
	Gross proceeds from offshore production from depths greater than 8,000 feet below mean sea level.
ADDITIONAL INFORMATION
DUE DATE: Oil and gas severance tax payments and returns are due on or before the 15th day of the second month following the month of production. PENALTIES & INTEREST: Failure to timely pay tax - 10% of tax. Failure to timely file return - Greater of 10% of tax or $50.00. Interest on underpayments or delinquencies is calculated at the current applicable rate from the day the tax is due to the date the tax is paid.		All reports, payments, and inquiries regarding oil and gas severance tax should be directed to: Alabama Department of Revenue P.O. Box 327560 Montgomery, AL 36132-7560 Telephone (334) 353-7827 Fax (334) 242-0770 EFT Assistance: 1-800-322-4106 (option 7)

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