SB 1630 Summary: Gross Production Tax Reduction and Simplification Act

• Reduces gross production tax rates effective July 1, 2016: oil and gas tax decreases from 7% to 4.95%, and modifies rates for horizontally drilled wells to 4.95%.

• Simplifies tax structure by removing obsolete variable rate provisions tied to commodity prices that were in effect January 1, 1999 through June 30, 2013.

• Establishes 4.95% tax rate on production from wells spudded on or after July 1, 2016 that do not qualify for other exemptions or reduced rates under existing subsections.

• Maintains existing exemptions and reduced rates for enhanced recovery projects, secondary/tertiary recovery, inactive wells, production enhancement, deep wells, new discoveries, and three-dimensional seismic projects until those exemptions expire.

• Effective November 1, 2014.