Alabama § 40-20-21 - Computation of Privilege Tax.
Full text of Alabama Code of Alabama § 40-20-21 — Computation of Privilege Tax., with citation guidance and answers to common questions.
§ 40-20-21. Computation of Privilege Tax.
The privilege tax levied by this chapter as it applies to offshore production from depths greater than 8,000 feet below mean sea level shall not be computed as a percentage of gross value at the point of production, as provided in Article 1, but shall be computed as a percentage of gross proceeds. The amount of the tax shall be computed at the rate of three and sixty-five one hundredths percent (3.65%) of the gross proceeds attributable to the offshore production.
Source: official Alabama text · Last verified 2026-08-27
Frequently Asked Questions About Alabama § 40-20-21
What does Code of Alabama § 40-20-21 cover?
Section 40-20-21 ("Computation of Privilege Tax.") is part of the Code of Alabama, the codified statutory law of Alabama. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Alabama § 40-20-21?
A common citation format is "Code of Alabama § 40-20-21" (Alabama). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Alabama law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Alabama official source linked on this page or consult a licensed Alabama attorney.
How does Alabama § 40-20-21 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Alabama can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Alabama.