Sales & use tax-well activities.

04LSO-0099.L1

                                                         

FISCAL NOTE (HB0038)

 

 

 

The fiscal impact, in the form of a revenue decrease, is indeterminable.

 

This revenue decrease would be from the sales tax exemption for all services rendered to real or tangible personal property within an oil or gas well site. This exemption would include all services required during the entire productive life of the well, including recompletion, all the way through abandonment.

 

The total sales tax revenue generated by oil and gas field services in FY03 was $31,869,926 ($26,454,629 in state sales tax, $4,117,140 in general purpose optional sales tax, and $1,298,157 in specific purpose optional sales tax). The portion of this sales tax related to services rendered is unknown.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Prepared by:   Dean Temte, LSO    Phone:   777-7881

(Information provided by Dan Noble, Dept. of Revenue; phone 777-5220)