CS/HB 515

1	A bill to be entitled
2	An act relating to oil and gas production taxes; amending
3	s. 211.02, F.S.; providing for differential rates for the
4	oil production tax on tertiary oil; revising definitions;
5	amending s. 211.027, F.S.; exempting certain oil and gas
6	production from the tax for a certain period of time;
7	providing for future repeal of the exemptions; amending s.
8	211.06, F.S.; conforming cross-references; providing an
9	effective date.
10
11	Be It Enacted by the Legislature of the State of Florida:
12
13	Section 1.  Subsection (1) and paragraph (a) of subsection
14	(3) of section 211.02, Florida Statutes, are amended to read:
15	211.02  Oil production tax; basis and rate of tax; tertiary
16	oil.--An excise tax is hereby levied upon every person who
17	severs oil in the state for sale, transport, storage, profit, or
18	commercial use. Except as otherwise provided in this part, the
19	tax is levied on the basis of the entire production of oil in
20	this state, including any royalty interest. Such tax shall
21	accrue at the time the oil is severed and shall be a lien on
22	production regardless of the place of sale, to whom sold, or by
23	whom used and regardless of the fact that delivery of the oil
24	may be made outside the state.
25	(1)  The amount of tax shall be measured by the value of
26	the oil produced and saved or sold during a month. The value of
27	oil shall be taxed at the following rates:
28	(a)  Small well oil and tertiary oil, 5 percent of gross
29	value.; and
30	(b)  Tertiary oil:
31	1.  Five percent of gross value for oil having a value
32	equal to or greater than $100 per barrel.
33	2.  Three percent of gross value for oil having a value
34	equal to or greater than $60 per barrel but less than $100 per
35	barrel.
36	3.  One percent of gross value for oil having a value less
37	than $60 per barrel.
38	(c)(b)  All other oil, 8 percent of gross value.
39	(3)(a)  The term "tertiary oil" means the excess barrels of
40	oil produced, or estimated to be produced, as a result of the
41	actual use of a tertiary recovery method methods in a qualified
42	enhanced oil tertiary recovery project, over the barrels of oil
43	which could have been produced by continued maximum feasible
44	production methods in use prior to the start of tertiary
45	recovery. A "qualified enhanced oil tertiary recovery project"
46	means a project for enhancing recovery of oil which meets the
47	requirements of 26 U.S.C. s. 43(c)(2) s. 4993(c), Internal
48	Revenue Code of 1954, as amended, or substantially similar
49	requirements.
50	Section 2.  Subsection (4) is added to section 211.027,
51	Florida Statutes, to read:
52	211.027  Exemptions.--The following on-shore production is
53	not subject to any tax imposed under this part:
54	(4)(a)1.  Oil and gas produced from a new field well
55	completed after July 1, 2009, for a period of 60 months after
56	the completion date.
57	2.  Oil and gas produced from a new producing well
58	completed on or after July 1, 2009, in a field that was
59	established by the Department of Environmental Protection before
60	July 1, 2009, for a period of 48 months after the completion
61	date.
62	3.  Oil and gas produced on or after July 1, 2009, from a
63	shut-in well that has been out of service for at least 24 months
64	prior to July 1, 2009, and through workover and mechanical
65	repair is returned to commercial production, for a period of 48
66	months after the completion date.
67	4.  Oil and gas produced on or after July 1, 2009, from a
68	temporarily abandoned well or wellbore that has been out of
69	service for at least 24 months prior to July 1, 2009, and that
70	is brought into commercial production by redrilling and
71	recompletion, for a period of 48 months after the completion
72	date.
73	5.  Oil and gas produced on or after July 1, 2009, from any
74	new horizontal well or any new well having a total measured
75	depth in excess of 15,000 feet, for a period of 60 months after
76	the completion date.
77	(b)  This subsection is repealed June 30, 2019.
78	Section 3.  Subsection (2) of section 211.06, Florida
79	Statutes, is amended to read:
80	211.06  Oil and Gas Tax Trust Fund; distribution of tax
81	proceeds.--All taxes, interest, and penalties imposed under this
82	part shall be collected by the department and placed in a
83	special fund designated the "Oil and Gas Tax Trust Fund."
84	(2)  Beginning July 1, 1995, the remaining proceeds in the
85	Oil and Gas Tax Trust Fund shall be distributed monthly by the
86	department and shall be paid into the State Treasury as follows:
87	(a)  To the credit of the General Revenue Fund of the
88	state:
89	1.  Seventy-five percent of the proceeds from the oil
90	production tax imposed under s. 211.02(1)(c)(b).
91	2.  Sixty-seven and one-half percent of the proceeds from
92	the tax on small well oil imposed under s. 211.02(1)(a) and
93	tertiary oil imposed under s. 211.02(1)(b)(a).
94	3.  Sixty-seven and one-half percent of the proceeds from
95	the tax on gas imposed under s. 211.025.
96	4.  Sixty-seven and one-half percent of the proceeds of the
97	tax on sulfur imposed under s. 211.026.
98	(b)  To the credit of the general revenue fund of the board
99	of county commissioners of the county where produced, subject to
100	the service charge imposed under chapter 215:
101	1.  Twelve and one-half percent of the proceeds from the
102	tax on oil imposed under s. 211.02(1)(c)(b).
103	2.  Twenty percent of the proceeds from the tax on small
104	well oil imposed under s. 211.02(1)(a) and tertiary oil imposed
105	under s. 211.02(1)(b)(a).
106	3.  Twenty percent of the proceeds from the tax on gas
107	imposed under s. 211.025.
108	4.  Twenty percent of the proceeds from the tax on sulfur
109	imposed under s. 211.026.
110	(c)  To the credit of the Minerals Trust Fund:
111	1.  Twelve and one-half percent of the proceeds from the
112	tax on oil imposed under s. 211.02(1)(c)(b).
113	2.  Twelve and one-half percent of the proceeds from the
114	tax on small well imposed under s. 211.02(1)(a) and tertiary oil
115	imposed under s. 211.02(1)(b)(a).
116	3.  Twelve and one-half percent of the proceeds from the
117	tax on gas imposed under s. 211.025.
118	4.  Twelve and one-half percent of the proceeds from the
119	tax on sulfur imposed under s. 211.026.
120	Section 4.  This act shall take effect July 1, 2009.

CODING: Words stricken are deletions; words underlined are additions.