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For the purpose of this chapter, the following definitions shall apply unless the context clearly indicates or requires a different meaning.
BUSINESS OF GAS PRODUCTION. Applies to any person in the business of producing gas for sale.
CASINGHEAD GAS. Any gas and/or vapor indigenous to an oil stratum and produced from such stratum with oil.
CUBIC FOOT OF GAS. The volume of gas expressed in cubic feet and computed at a base pressure of 6.28 ounces per square inch above the average barometric pressure of 14.4 pounds per square inch and a standard base and flowing temperature of 60°F, corrections to be made for pressure according to Boyle's law and for specific gravity according to tests made by the balance method.
GAS. Natural and casinghead gas or other gas taken from the earth or waters, regardless of whether produced from a gas well or from a well also productive of oil, distillate and/or condensate or other product.
PERSON. Includes any person, firm, concern, receiver, trustee, executor, administrator, agent, institution, association, partnership, company, corporation, and persons acting under declarations of trust, as well as the trustees acting under such declarations of trust.
PRODUCER. Any person owning, controlling, managing or leasing any gas well and/or any person who produces in any manner any gas by taking it from the earth or waters in Garrett County.
PRODUCTION or TOTAL GAS PRODUCED. The total gross amount of gas produced. The amount for the purpose of the tax imposed by this chapter shall be measured or determined by meter readings showing 100% of the full volume expressed in cubic feet.
REPORT. Any report required to be furnished by this chapter or that may be required by the County Commissioners in the administration of this chapter.
TAXPAYER. Any person subject to the tax herein levied.
(1986 Code, § 74-1) (1957 Code, § 429: 1951, Ch. 265, § 302B; 1978, Ch. 400; Md. S.B. 651, passed 5-19-2009)
(A) Levy; rate established; exclusions. There is levied a production tax on the business or occupation of producing natural gas or other gases taken from the earth in Garrett County, computed as follows:
(1) A tax shall be paid on the gas produced within Garrett County, accounting from January 1, 1951, equivalent to 5.5% of the wholesale market value when produced at the wellhead;
(2) Money received pursuant to the tax shall be distributed as follows:
(a) Ten-elevenths to the county; and
(b) One-eleventh to municipalities in the county distributed on a per capita basis, based on population records as updated by the State Planning Commission.
(B) The market value of gas produced in Garrett County shall be the value thereof at the mouth of the well.
(C) The producer of gas shall pay the total tax on all gas produced, making the payments of tax to the County Commissioners of Garrett County by legal tender or cashier's check payable to the County Commissioners. It shall be the duty of each such producer to keep accurate records of all such gas produced.
(D) The tax herein levied shall be due and payable at the office of the County Commissioners of Garrett County by the 15th day of each month of each calendar year, based on the amount of gas produced in the preceding month. On or before such date each producer shall make and deliver to the County Commissioners a verified report, on forms prescribed by the county, showing the gross amount of gas produced, upon which the tax herein levied accrues, together with details as to the amount of gas, from what leases the gas was produced, the correct names and addresses of the producer of the gas and such other information as the County Commissioners may require. In no event shall a producer be relieved of responsibility for the tax until same shall have been paid.
(E) Unless the payment of tax on all gas produced during any month or fractional part thereof shall be made on or before the date due as hereinabove specified, such payment shall become delinquent and a penalty of 10% of the amount of the tax shall be added, and the tax and penalty shall bear interest at the rate of 6% per annum from the date due until the date paid.
(1986 Code, § 74-1) (1957 Code, § 428; 1951, Ch. 265, § 302A; Md. S.B. 651, passed 5-19-2009)
When it shall appear that a taxpayer to whom the provisions of this chapter shall apply has erroneously paid more taxes than were due during any taxpaying period on account of a mistake either of fact or of law, it shall be the duty of the Director of Finance, upon order of the County Commissioners, to credit the total amount of taxes due by the taxpayer for the current period with the total amount of taxes so erroneously paid or to make refund in a proper case.
(1986 Code, § 74-3) (1957 Code, § 430; 1951, Ch. 265, § 302C; Md. S.B. 651, passed 5-19-2009
)
The County Commissioners may, through the County Auditors or other auditors and/or other technical assistants employed for the purpose of verifying reports and investigating the affairs of producers, determine whether the tax is being properly reported and paid. They shall have the power to enter upon the premises necessary in determining the correct tax liability and to examine or cause to be examined any books or records of any person subject to a tax under this chapter and to secure any other information directly or indirectly concerned in the enforcement of this chapter and to promulgate and enforce, according to law, rules and regulations pertinent to the enforcement of this chapter, which shall have full force and effect of law.
(1986 Code, § 74-4) (1957 Code, § 431; 1951. Ch. 265, § 302D; Md. S.B. 651, passed 5-19-2009)
If the County Commissioners are satisfied that the values used in computing the tax do not represent the wholesale market value of the gas at the mouth of the well, they shall forthwith so notify the taxpayers concerned, and it shall be the duty of the County Commissioners to set a date for a hearing thereon, giving each taxpayer concerned not less than 10 days written notice thereof, and to call before them by proper process such persons as in their judgment may know the wholesale market value of the gas at the mouth of the well, who shall testify under oath as to the wholesale market value thereof. Each taxpayer shall have the right to be heard and present evidence. The County Commissioners, after hearing the evidence, shall fix the wholesale market value of the gas at the mouth of the well by written findings in accordance with the evidence so introduced, and their findings in such case or cases shall be final, unless the taxpayer concerned shall pay the tax herein levied upon the wholesale market value so fixed by the County Commissioners under protest within 60 days after the taxpayer has been notified in writing of the findings, or in the event the taxpayer does not pay the tax based on the values so determined by the County Commissioners within 60 days after having been notified of the findings. The findings of the County Commissioners shall be final, unless the taxpayer shall, within 60 days, appeal to the Circuit Court of Garrett County. Upon the appeal, the trial shall be de novo, but the findings of the County Commissioners shall be taken as prima facie evidence of the wholesale market value of the gas at the mouth of the well, and the burden of proof shall rest upon the taxpayer to establish a lower wholesale market value.
(1986 Code, § 74-5) (1957 Code, § 432; 1951, Ch. 265, § 302E; Md. S.B. 651, passed 5-19-2009)
In the event of any person engaged in the business of producing any gas in Garrett County shall become delinquent in the payment of the proper taxes herein imposed or fails to file required reports with the County Commissioners, the County Commissioners shall have the right to enjoin any such person who is at fault from producing gas until the delinquent tax is paid or the reports are filed.
(1986 Code, § 74-6) (1957 Code, § 433; 1951, Ch. 265, § 302F; Md. S.B. 651, passed 5-19-2009)
(A) On notice from the County Commissioners, it shall be unlawful for any person to produce or remove any natural gas from any lease in Garrett County whenever the producer has failed to file reports as required under the provisions of this chapter.
(B) Whenever any lease producing natural gas changes hands, it shall be the duty of the producer to note on his or her last report that the lease or interest has been sold or transferred, showing the effective date of the change and the name and address of the individual, firm, association, joint-stock company, syndicate, copartnership, corporation, agency or receiver who will operate the lease or who bought the interest and will be responsible for the filing of reports provided for in this chapter. It further shall be the duty of the new producer to note on his or her first report that the lease or interest has been acquired, showing the effective date of the change and the name and address of the individual, firm, association, joint-stock company, syndicate, copartnership, corporation, agency or receiver formerly owning and/or operating the lease or interest.
(1986 Code, § 74-8) (1957 Code, § 435; 1951, Ch. 265, § 302H; Md. S.B. 651, passed 5-19-2009)
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