ID H0269

Levies a 2.5% tax on gross income received by producers of oil and gas produced in Idaho, with revenue deposited into the Oil and Gas Conservation Fund.

Defines "gross income" as the amount realized for sale of oil or gas without deduction for transportation, manufacturing, and processing costs borne by the producer.

Requires comparable arms-length sales pricing to determine gross income when related parties transact at below-market rates and the taxpayer could have sold to an unrelated buyer.

Imposes quarterly tax payment requirements due to the state tax commission by the twentieth of the following month, with producers authorized to deduct proportionate tax amounts before paying other interest holders.

Distributes collected revenues: 40% to county current expense fund (28%), cities by population (28%), public school income fund (28%), and local economic development account (16%); 60% for oil and gas conservation commission expenses with surplus transferred to general fund.