A. Prior to July 1, 2026, and as provided in Section 1103.1 of this title, there is hereby levied, in addition to the gross production tax, an excise tax equal to ninety-five one thousandths of one percent (.095 of 1%) of the gross value of all natural gas and/or casinghead gas produced in this state which is subject to gross production tax in this state. Such excise tax of ninety-five one thousandths of one percent (.095 of 1%) of the gross value shall be reported to and collected by the Tax Commission at the same time and in the same manner as is provided by law for the collection of gross production tax on natural gas and/or casinghead gas, and this excise tax shall apply in all cases where the gross production tax provided for by law applies to the production of natural gas and/or casinghead gas. The excise tax shall be paid by the purchaser, who is hereby authorized to deduct in making settlement with the producer and/or royalty owner the amount of tax so paid; provided, however, that if such natural gas and/or casinghead gas is retained by the producer, then the tax shall be paid by the producer, who shall have the right to deduct the amount of tax so paid on royalty gas at the time of settlement with the royalty owner.
The provisions of this subsection shall terminate on June 30, 2026.
B. Beginning on July 1, 2026, there is hereby levied, in addition to the gross production tax, an excise tax equal to eighty-five one thousandths of one percent (.085 of 1%) of the gross value of all natural gas and/or casinghead gas produced in this state which is subject to gross production tax in this state. Such excise tax of eighty-five one thousandths of one percent (.085 of 1%) of the gross value shall be reported to and collected by the Tax Commission at the same time and in the same manner as is provided by law for the collection of gross production tax on natural gas and/or casinghead gas, and this excise tax shall apply in all cases where the gross production tax provided for by law applies to the production of natural gas and/or casinghead gas. The excise tax shall be paid by the purchaser, who is hereby authorized to deduct in making settlement with the producer and/or royalty owner the amount of tax so paid; provided, however, that if such natural gas and/or casinghead gas is retained by the producer, then the tax shall be paid by the producer, who shall have the right to deduct the amount of tax so paid on royalty gas at the time of settlement with the royalty owner.
Added by Laws 1965, c. 442, § 2. Amended by Laws 1967, c. 208, § 1, eff. July 1, 1967; Laws 1974, c. 63, § 2, operative July 1, 1974; Laws 1976, c. 100, § 2, operative July 1, 1976; Laws 1990, c. 107, § 6, eff. Oct. 1, 1990; Laws 1995, c. 328, § 10, eff. July 1, 1995; Laws 2001, c. 249, § 6, eff. July 1, 2001; Laws 2006, c. 252, § 3, eff. July 1, 2006; Laws 2011, c. 154, § 3; Laws 2016, c. 153, § 3, emerg. eff. April 25, 2016; Laws 2021, c. 497, § 3, eff. July 1, 2021.