Arkansas Code § 15-72-706 - Credit Against Severance Tax

From and after the effective date of the certificate, the person shall be entitled to receive from the Revenue Division of the Department of Finance and Administration a credit against the taxes thereafter otherwise due by the person on account of oil produced from the pool from wells located on any land as to which the person was the owner, and so designated, in the application filed with the Oil and Gas Commission, as follows:

(1) Seventy-five percent (75%) of the severance tax otherwise due during a period of five (5) years from the date of the certificate if the pool is located above the base of the deepest producing oil formation in the county where the discovery well is located at the date of the application;

(2) Seventy-five percent (75%) of the severance tax otherwise due during a period of ten (10) years from the date of the certificate if the pool is located below the base of the deepest producing oil formation in the county or if there was no oil production in the county at the date of the application; and

(3) The certificate shall designate whether the person named therein is entitled thereunder to the benefits of subdivisions (1) and (2) of this section, and the name of the field and pool covered thereby.

Section: Previous  15-72-702  15-72-703  15-72-704  15-72-705  15-72-706  

Last modified: November 15, 2016