12B-7.004: Rate of Tax; Oil, Gas and Sulfur
12B-7.008: Public Use Forms
12B-7.026: Public Use Forms
PURPOSE AND EFFECT: Effective July 1, 2009, Section 2, Chapter 2009-139, L.O.F., imposes new tiered tax rates on oil produced by tertiary methods in Florida. The purpose of the proposed amendments to Rule 12B-7.004, F.A.C. (Rate of Tax; Oil, Gas, and Sulfur), Rule 12B-7.008, F.A.C. (Public Use Forms), and Rule 12B-7.026, F.A.C. (Public Use Forms), is to: (1) update provisions for reporting and remitting tax on oil produced by tertiary methods in Florida, as provided by Section 2, Chapter 2009-139, L.O.F.; and (2) update the tax and surtax rate changes imposed by Sections 211.02, and 211.3101, F.S., on the production of oil and on the severance of phosphate rock in Florida.
SUMMARY: The proposed amendments to Rule 12B-7.004, F.A.C. (Rate of Tax; Oil, Gas, and Sulfur): (1) provide the tiered tax rates for oil produced by tertiary methods, as provided in Section 2, Chapter 2009-139, L.O.F.; and (2) provide an example of how to calculate the amount of tax due.
The proposed amendments to Rule 12B-7.008, F.A.C. (Public Use Forms), adopt, by reference, the tax rates imposed by Chapter 2009-139, L.O.F., on the production of oil reported on Forms DR-145 and DR-145X.
The proposed amendments to Rule 12B-7.026, F.A.C. (Public Use Forms), adopt, by reference, the tax and surtax rates imposed by Section 211.3101, F.S., on the severance of phosphate rock for calendar year 2010 on Forms DR-142 and DR-142ES.
SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS: No Statement of Estimated Regulatory Cost was prepared.
Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.
SPECIFIC AUTHORITY: 211.075(2), 211.125(1), 211.33(6), 213.06(1) FS.
LAW IMPLEMENTED: 92.525(1)(b), (2), (3), (4), 211.02, 211.025, 211.026, 211.04, 211.075, 211.076, 211.125, 211.30, 211.31, 211.3103, 211.3106, 211.33, 213.755(1) FS.
A HEARING WILL BE HELD AT THE DATE, TIME AND PLACE SHOWN BELOW:
DATE AND TIME: October 13, 2009, 9:00 a.m.
PLACE: Room 118, Carlton Building, 501 S. Calhoun Street, Tallahassee, Florida
Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 48 hours before the workshop/meeting by contacting: Larry Green at (850)922-4830. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).
THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: French Brown, Senior Attorney, Technical Assistance and Dispute Resolution, Department of Revenue, P. O. Box 7443, Tallahassee, Florida 32314-7443, telephone (850)922-4708
THE FULL TEXT OF THE PROPOSED RULE IS:
PART I – TAX ON PRODUCTION OF OIL, GAS, AND SULFUR
12B-7.004 Rate of Tax; Oil, Gas and Sulfur.
(1) Oil.
(a) The amount of tax shall be measured by the value of oil produced and saved. The rate for oil shall be 8 percent of the gross value thereof at the point of production.
(b) All wells capable of producing less than 100 barrels of oil per day or oil produced by tertiary methods shall be taxed at the rate of 5 percent of the gross value at the point of production.
(c) Oil produced by tertiary methods shall be taxed at the following tiered rates on the gross value at the point of production:
1. 1 percent of the gross value of oil $60 and below;
2. 7 percent of the gross value of oil above $60 and below $80;
3. 9 percent of the gross value of oil $80 and above.
4. Example: 200 barrels of oil were produced that had a value of $90.00 per barrel at the time of production. Tax is calculated as follows:
First Tier: 200 barrels x $60 x 1% = $120
Second Tier: + 200 barrels x $20 x 7% = $280
Third Tier: + 200 barrels x $10 x 9% = $180
Total Tax Due: $580
(d)(c) No change.
(2) through (3) No change.
Rulemaking Specific Authority 211.125, 213.06(1) FS. Law Implemented 211.02, 211.025, 211.026, 211.04 FS. History–New 12-28-78, Formerly 12B-7.04, Amended 12-18-94,_________.
12B-7.008 Public Use Forms.
(1)(a) The following forms and instructions are used by the Department in its administration of the taxes imposed on the production of oil, gas, and sulfur. These forms are hereby incorporated by reference in this rule.
(b) No change.
Form Number Title Effective Date
(2) through (3) No change.
(4) DR-145 Oil Production Monthly Tax Return (R. 07/09 08/08) ____ (01/09)
(5) DR-145X Oil Production Monthly Amended Tax Return (R. 07/09 08/08) ____ (01/09)
Rulemaking Specific Authority 211.075(2), 211.125(1), 213.06(1) FS. Law Implemented 92.525(1)(b), (2), (3), (4), 211.02, 211.026, 211.075, 211.076, 211.125, 213.755(1) FS. History‑New 12-28-78, Formerly 12B‑7.08, Amended 12-18-94, 5-4-03, 10-1-03, 11-6-07, 1-27-09,________.
PART II – SEVERANCE TAX ON SOLID MINERALS
12B-7.026 Public Use Forms.
(1)(a) The following forms and instructions are used by the Department in its administration of the taxes and surcharge imposed on the severance of solid minerals, phosphate rock, or heavy minerals from the soils and waters of this state. These forms are hereby incorporated by reference in this rule.
(b) No change.
Form Number Title Effective Date
(2) DR-142 Solid Mineral Severance Tax Return (R. 01/10 01/09) _____ 01/09
(3) DR-142ES Declaration/Installment Payment of Estimated Solid Mineral
Severance Tax (R. 01/10 01/09) ____ 01/09
Rulemaking Specific Authority 211.33(6), 213.06(1) FS. Law Implemented 92.525(2), 211.30, 211.31, 211.3103, 211.3106, 211.33, 213.755(1) FS. History–New 12-18-94, Amended 10-4-01, 5-4-03, 10-1-03, 11-6-07, 1-27-09,_______.