Due to recent conversations around increasing the gross production tax, the State Chamber of Oklahoma President and CEO, Fred Morgan, released the following statement:
Oklahoma’s GPT is already 7% on all wells after year three of production. Increasing the rate to 7% for new wells will dramatically reduce, if not eliminate drilling activity in our state. This will cost the state jobs, hurting Oklahoma families and reducing the total income tax and sales tax revenue at the state and local levels. It’s a dangerous risk to the Oklahoma economy to presume businesses will continue to drill here regardless of continually diminishing returns and punitive tax policy. That assumes drilling in Oklahoma is the only option for the industry, which is inaccurate. Seven percent of zero production is zero dollars.