Full Text of SB3230 98th General Assembly
SB3230 98TH GENERAL ASSEMBLY |
| | 98TH GENERAL ASSEMBLY
State of Illinois
2013 and 2014 SB3230 Introduced 2/11/2014, by Sen. Ira I. Silverstein SYNOPSIS AS INTRODUCED: |
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Amends the Illinois Hydraulic Fracturing Tax Act. Removes a provision that provides for a different tax calculation for the first 24 months of oil and gas production.
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| | A BILL FOR |
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| 1 | | AN ACT concerning revenue.
| 2 | | Be it enacted by the People of the State of Illinois,
| 3 | | represented in the General Assembly:
| 4 | | Section 5. The Illinois Hydraulic Fracturing Tax Act is | 5 | | amended by changing Section 2-15 as follows: | 6 | | (35 ILCS 450/2-15)
| 7 | | Sec. 2-15. Tax imposed. | 8 | | (a) For oil and gas removed on or after July 1, 2013, there | 9 | | is hereby imposed a tax upon the severance and production of | 10 | | oil or gas from a well on a production unit in this State | 11 | | permitted, or required to be permitted, under the Illinois | 12 | | Hydraulic Fracturing Regulatory Act, for sale, transport, | 13 | | storage, profit, or commercial use. The tax shall be applied | 14 | | equally to all portions of the value of each barrel of oil | 15 | | severed and subject to such tax and to the value of the gas | 16 | | severed and subject to such tax. The For a period of 24 months | 17 | | from the month in which oil or gas was first produced from the | 18 | | well, the rate of tax shall be 3% of the value of the oil or gas | 19 | | severed from the earth or water in this State. Thereafter, the | 20 | | rate of the tax shall be as follows: | 21 | | (1) For oil: | 22 | | (A) where the average daily production from the | 23 | | well during the month is less than 25 barrels, 3% of |
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| 1 | | the value of the oil severed from the earth or water; | 2 | | (B) where the average daily production from the | 3 | | well during the month is 25 or more barrels but less | 4 | | than 50 barrels, 4% of the value of the oil severed | 5 | | from the earth or water; | 6 | | (C) where the average daily production from the | 7 | | well during the month is 50 or more barrels but less | 8 | | than 100 barrels, 5% of the value of the oil severed | 9 | | from the earth or water; or | 10 | | (D) where the average daily production from the | 11 | | well during the month is 100 or more barrels, 6% of the | 12 | | value of the oil severed from the earth or water. | 13 | | (2) For gas, 6% of the value of the gas severed from | 14 | | the earth or water. | 15 | | If a well is required to be permitted under the Illinois | 16 | | Hydraulic Fracturing Regulatory Act, the tax imposed by this | 17 | | Section applies, whether or not a permit was obtained. | 18 | | (b) Oil produced from a well whose average daily production | 19 | | is 15 barrels or less for the 12-month period immediately | 20 | | preceding the production is exempt from the tax imposed by this | 21 | | Act.
| 22 | | (c) For the purposes of the tax imposed by this Act the | 23 | | amount of oil produced shall be measured or determined, in the | 24 | | case of oil, by tank tables, without deduction for overage or | 25 | | losses in handling. Allowance for any reasonable and bona fide | 26 | | deduction for basic sediment and water, and for correction of |
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| 1 | | temperature to 60 degrees Fahrenheit will be allowed. For the | 2 | | purposes of the tax imposed by this Act the amount of gas | 3 | | produced shall be measured or determined, by meter readings | 4 | | showing 100% of the full volume expressed in cubic feet at a | 5 | | standard base and flowing temperature of 60 degrees Fahrenheit, | 6 | | and at the absolute pressure at which the gas is sold and | 7 | | purchased. Correction shall be made for pressure according to | 8 | | Boyle's law, and used for specific gravity according to the | 9 | | gravity at which the gas is sold and purchased. | 10 | | (d) The following severance and production of gas shall be | 11 | | exempt from the tax imposed by this Act: gas injected into the | 12 | | earth for the purpose of lifting oil, recycling, or | 13 | | repressuring; gas used for fuel in connection with the | 14 | | operation and development for, or production of, oil or gas in | 15 | | the production unit where severed; and gas lawfully vented or | 16 | | flared; gas inadvertently lost on the production unit by reason | 17 | | of leaks, blowouts, or other accidental losses. | 18 | | (e) All oil and gas removed from the premises where severed | 19 | | is subject to the tax imposed by this Act unless exempt under | 20 | | the terms of this Act.
| 21 | | (f) The liability for the tax accrues at the time the oil | 22 | | or gas is removed from the production unit.
| 23 | | (Source: P.A. 98-22, eff. 6-17-13; revised 10-7-13.)
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