15-36-302. Legislative findings and declaration of purpose. (1) (a) The legislature finds that the extraction taxes imposed on the production of oil and natural gas have been exceedingly complex and confusing. Oil and natural gas producers have been required to file several tax forms and to pay taxes at different times on the same production.
(b) The legislature further finds that it is in the best interest of the state and in the best interest of oil and gas producers to simplify the taxation of oil and natural gas production.
(2) The legislature declares that the purposes of this part are:
(a) to replace all net proceeds taxes, severance taxes, privilege and license taxes, and other extraction taxes on oil and natural gas production with a single production tax based on the type of well and type of production;
(b) to ensure that the distribution of tax revenue to the state, counties, and school districts from the new production taxes is consistent with the distribution of tax revenue from the former extraction taxes;
(c) to simplify the procedures for compliance with and the administration of the taxation of oil and natural gas production;
(d) to provide an incentive for oil and natural gas producers to pay 1995 local government severance taxes on an accelerated basis; and
(e) to provide discretionary authority to counties and school districts for the use of the accelerated payments of the local government severance tax.
History: En. Sec. 2, Ch. 451, L. 1995.