Natural gas-taxation.

10LSO-0317.L1

                                                         

FISCAL NOTE

 

 

FY 2011

FY 2012

FY 2013

NON-ADMINISTRATIVE IMPACT

 

 

 

Anticipated Revenue Increase:

 

 

 

AD VALOREM TAX          

0

1,100,000

1,100,000

BUDGET RESERVE ACCOUNT  

435,556

435,556

435,556

GENERAL FUND            

217,778

217,778

217,778

PERM. MINERAL TRUST FUND

466,666

466,666

466,666

 

Source of revenue increase:

 

Severance taxes and ad valorem taxes on natural gas production

 

 

Assumptions:

 

It is assumed that modified netback methodology is applicable.

 

It is assumed that initial dehydration is not considered processing for valuation purposes.

 

This bill would apply to natural gas produced on or after January 1, 2010. Ad valorem taxes on 2010 gas production would be paid in FY 2012.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

(Information provided by Craig Grenvik, Dept. of Rev.; 777-5237)