Code of Alabama - Title 40: Revenue and Taxation - Chapter 20 - Oil and Gas

• Article 1 Privilege Tax on Production.
• Section 40-20-1 Definitions
  For the purpose of this article, the following terms shall have the respective meanings ascribed by this section: (1) DEPARTMENT. The state Department of Revenue....
• Section 40-20-2 Levy and amount of tax upon business of producing or severing oil or gas from soil, etc., generally
  (a)(1) There is hereby levied, to be collected hereafter, as herein provided, annual privilege taxes upon every person engaging or continuing to engage within the...
• Section 40-20-3 Tax levied upon producers in proportion to ownership at time of severance; by whom tax paid; lien
  (a) The privilege tax hereby imposed is levied upon the producers of such oil or gas in the proportion of their ownership at the time...
• Section 40-20-4 Enforcement of article; collection of taxes; statements to be filed and records kept; inspection of records; hearings and compelling attendance of witnesses; rules and regulations
  (a) The department is hereby authorized and directed to administer and enforce the provisions of this article and to collect all of the taxes levied...
• Section 40-20-5 When reports to be filed; payments to accompany reports
  All reports required under the provisions of this article shall be filed with the department on or before the fifteenth day of the second calendar...
• Section 40-20-7 Deduction of appropriation for expenses of department
  Such amount of money as shall be appropriated for each fiscal year by the Legislature to the Department of Revenue with which to pay the...
• Section 40-20-8 Allocation and distribution of net taxes collected; property which consists of submerged lands and onshore lands; onshore lands defined; applicability of section; final determination establishing allocation base
  (a) Ninety percent of the net amount of all taxes herein levied and collected by the department on oil or gas produced from submerged lands...
• Section 40-20-9 Reports to be made on blanks furnished by department; certificate and verification required
  All reports required to be filed under the provisions of this article shall be made on blanks, furnished by the department, which shall contain the...
• Section 40-20-11 Enjoining violation of article
  If it is brought to the attention of the department that any producer is guilty of violating any of the provisions of this article, the...
• Section 40-20-12 Exemption from ad valorem taxes
  (a) All oil or gas produced, all leases in production, including mineral rights in producing properties, and all oil or gas under the ground on...
• Section 40-20-13 Collection and disbursement of additional taxes
  If the department is authorized by any other law to collect any further or additional taxes from producers, as herein defined, such taxes shall be...
• Section 40-20-14 Credits against tax for manufacturers of direct reduced iron
  Repealed by Act 2015-70 effective April 21, 2015.
• Article 1A Privilege Tax on Certain Offshore Production.
• Section 40-20-20 Definitions
  In addition to the definitions contained in Section 40-20-1, which shall apply for purposes of this article, except to the extent there is a conflict...
• Section 40-20-21 Computation of privilege tax
  The privilege tax levied by this chapter as it applies to offshore production from depths greater than 8,000 feet below mean sea level shall not...
• Section 40-20-22 Applicability; payment of and liability for taxes; reporting
  (a) The tax levied by this chapter and computed pursuant to Section 40-20-21 applies to all offshore production produced from depths greater than 8,000 feet...
• Section 40-20-23 Allocation and distribution of taxes
  (a) Ninety percent (90%) of the net amount of taxes collected by the department on oil or gas produced from submerged lands which are not...
• Article 2 Mineral Documentary Tax.
• Section 40-20-30 Definitions
  For the purpose of this article, the following terms shall have the respective meanings ascribed by this section: (1) OIL, GAS AND OTHER MINERALS. Oil,...
• Section 40-20-31 Levied; applicability
  There is hereby levied and shall be paid and collected as herein set forth a documentary or transfer tax, to be known as the mineral...
• Section 40-20-32 Tax to be a lien; amount of tax
  Such tax shall be a lien upon the interest leased, assigned, conveyed, reserved, excepted or transferred, and the amount to be paid shall be determined...
• Section 40-20-33 When and by whom tax payable; effect of nonpayment
  Such tax shall be payable by the grantee or grantees named or the beneficiary or real party in interest under such lease, deed, conveyance, transfer,...
• Section 40-20-34 Tax payable to probate judge; entries on instrument and record
  Such tax shall be paid to the probate judge of the county in which the land affected by the sale, lease or reservation or other...
• Section 40-20-35 Tax to be in lieu of ad valorem taxes; exemption of nonproducing leasehold and other interests from ad valorem taxes
  The mineral documentary tax levied above shall be in lieu of all ad valorem taxes and all nonproducing leasehold interests upon all oil, gas and...
• Section 40-20-36 How exemption obtained upon existing interests
  Application for such exemption upon existing interests shall be made to the probate judge of the county wherein the land lies in which such interest...
• Section 40-20-37 Fees of probate judge; disposition of remainder of tax
  From the taxes levied and collected under this article, there shall be paid into the county general fund, or to the judge of probate if...
• Article 3 County Oil and Gas Severance Tax Trust Funds.
• Section 40-20-50 Collection of severance taxes; deposit into fund; distribution of investment income; trustees; escrow agents; limitations
  Any laws or parts of laws to the contrary notwithstanding, any annual privilege tax levied upon persons engaging in the business of producing or severing...

Last modified: May 3, 2021