Companies need certainty, so lawmakers should act before the end of session
Oklahoma City (May 6, 2014) – The State Chamber of Oklahoma supports an industry proposal that would set the state’s gross production tax at two-percent for all wells for the first 48-months of production, rising to seven-percent thereafter. Lawmakers should make sure the issue is addressed this year to provide certainty for one of the state’s leading job producing industries.
“Oil and gas companies need certainty about tax rates as they prepare their drilling budgets this summer,” said Fred Morgan, president and CEO of the State Chamber. “We hope lawmakers will address the issue this session with a tax rate that continues to promote investment and drilling in Oklahoma.”
A recent report, which is available online, finds the oil and gas industry to be the largest single contributor to state revenue. The industry also paid out $2.5-billion in royalties and made purchases of $10.2-billion from Oklahoma companies.
“Oil and gas companies invest over $11-billion in drilling alone in Oklahoma,” said Morgan. “Add to that the billions in royalty payments and purchases from Oklahoma companies and the effect on rural Oklahoma is staggering.”