SB 166 Summary

• Amends Oklahoma gross production tax law (68 O.S. 2011, Section 1001) by clarifying tax exemptions and deductions for oil and gas production with various phase-in rates based on well depth and spud dates.

• Expands ad valorem tax exemptions to include wellbores and non-recoverable down-hole material (including casing) used in disposal systems for waste materials from oil and gas production, in addition to existing exemptions for lease equipment.

• Modifies Section 2817 regarding valuation of tangible personal property in commercial disposal systems to exclude contract rights, leases, wellbores, and non-recoverable down-hole materials from assessed value calculations.

• Updates Section 2353 of the Oklahoma Income Tax Act by replacing obsolete statutory references and modifying the time period during which the percentage depletion deduction limitation applies to major oil companies (extending it to include tax years beginning on or after January 1, 2014).

• Becomes effective November 1, 2013.