This bill would repeal the oil and gas tax holiday currently in place for new oil and gas wells. Currently, oil and gas wells pay virtually no taxes in the first 12-18 months of production, which is also typically the most productive time period for a well. Currently, natural gas and oil is taxed on the gross taxable value of production based on the type of well and type of production. The increased revenue derived from enacting this bill could help to fund much-needed infrastructure upgrades.
Last modified: January 6, 2017