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Bill Detail: HB22-1391

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Title Modifications To Severance Tax
Status Governor Signed (06/07/2022)
Bill Subjects
  • Fiscal Policy & Taxes
  • State Revenue & Budget
House Sponsors J. McCluskie (D)
Senate Sponsors B. Rankin (R)
C. Hansen (D)
House Committee Finance
Senate Committee Finance
Date Introduced 04/19/2022

Joint Budget Committee. The bill changes the calculation of the
ad valorem credit allowed against the state severance tax on oil and gas.
In tax years beginning on and after January 1, 2024, the credit for ad
valorem taxes is calculated on a per-well basis for wells that are not
exempt from taxation by applying the prior year's mill levy to the current
year's gross income multiplied by an assessment rate of 87.5%, and taking
87.5% of that amount for the credit. This calculation is simplified to
multiplying 76.56% of the gross income of the well by the mill levy fixed

in the prior calendar year.
A working group consisting of the director of the office of state
planning and budgeting and the executive directors of the departments of
revenue, natural resources, education, and local affairs, or their designees,
is required to develop an implementation plan for making additional
changes to the state severance tax on oil and gas. The implementation
plan must make recommendations concerning the steps necessary to
change the legal incidence of tax from interest owners to operators while
maintaining revenue neutrality, require electronic filing of returns for
severance taxes, and require additional electronic data collection to the

Committee Reports
with Amendments
Full Text
Full Text of Bill (pdf) (most recent)
Fiscal Notes Fiscal Notes (05/02/2022) (most recent)  
Additional Bill Documents Bill Documents
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  • Past fiscal notes
  • Committee activity and documents
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