Oklahoma § 68-1101 - Excise tax on oil - Additional tax

§ 68-1101. Excise tax on oil - Additional tax

A. Prior to July 1, 2026, and as provided in Section 1103.1 of

this title, there is hereby levied, in addition to the gross

production tax, an excise tax equal to ninety-five one thousandths

of one percent (.095 of 1%) of the gross value on each barrel of

petroleum oil produced in this state which is subject to gross

production tax in this state. Such excise tax of ninety-five one

thousandths of one percent (.095 of 1%) of the gross value shall be

reported to and collected by the Tax Commission at the same time and

in the same manner as is provided by law for the collection of gross

production tax on petroleum oil. On petroleum oil sold at the time

of production, the excise tax thereon shall be paid by the

purchaser, who is hereby authorized to deduct in making settlement

with the producer and/or royalty owner the amount of tax so paid;

provided, that in the event oil on which such tax becomes due is not

sold at the time of production, but is retained by the producer, the

tax on such oil not so sold shall be paid by the producer including

the tax due on royalty oil not sold; and provided, further, that in

settlement with royalty owner, such producer shall have the right to

deduct the amount of tax so paid on royalty oil, or to deduct

therefrom royalty oil equivalent in value at the time such tax

becomes due with the amount of tax paid.

The provisions of this subsection shall terminate on June 30,

2026.

B. Beginning on July 1, 2026, there is hereby levied, in

addition to the gross production tax, an excise tax equal to eightyfive one thousandths of one percent (.085 of 1%) of the gross value

on each barrel of petroleum oil produced in this state which is

subject to gross production tax in this state. Such excise tax of

eighty-five one thousandths of one percent (.085 of 1%) of the gross

value shall be reported to and collected by the Tax Commission at

the same time and in the same manner as is provided by law for the

collection of gross production tax on petroleum oil. On petroleum

oil sold at the time of production, the excise tax thereon shall be

paid by the purchaser, who is hereby authorized to deduct in making

settlement with the producer and/or royalty owner the amount of tax

so paid; provided, that in the event oil on which such tax becomes

due is not sold at the time of production, but is retained by the

producer, the tax on such oil not so sold shall be paid by the

Oklahoma Statutes - Title 68. Revenue and Taxation

producer including the tax due on royalty oil not sold; and

provided, further, that in settlement with royalty owner, such

producer shall have the right to deduct the amount of tax so paid on

royalty oil, or to deduct therefrom royalty oil equivalent in value

at the time such tax becomes due with the amount of tax paid.

Added by Laws 1965, c. 442, § 2. Amended by Laws 1974, c. 63, § 1,

operative July 1, 1974; Laws 1976, c. 100, § 1, operative July 1,

1976; Laws 1990, c. 107, § 5, eff. Oct. 1, 1990; Laws 1995, c. 328,

§ 9, eff. July 1, 1995; Laws 2001, c. 249, § 5, eff. July 1, 2001;

Laws 2006, c. 252, § 2, eff. July 1, 2006; Laws 2011, c. 154, § 2;

Laws 2016, c. 153, § 2, emerg. eff. April 25, 2016; Laws 2021, c.

497, § 2, eff. July 1, 2021.