Every person who engages in the business of producing oil from any well or wells located within this city shall pay an annual license tax for each well operated by such person for the purpose of producing crude oil, gas, or other petroleum substances, computed as follows:
A. One hundred fifty dollars, which amount is referred to in this chapter as "the base tax"; plus
B. Fifteen cents times the number of barrels of oil produced and shipped from the well during each calendar quarter of the calendar year, except as adjusted herein, which amount is referred to in this chapter as the "per-barrel tax." The per-barrel tax shall be adjusted on July 1, 1984, and on each July 1st thereafter. The adjustment shall be to increase or decrease the per-barrel tax by an amount equal to the percentage increase or decrease during the previous fiscal year (July 1 st through June 30th) in the Producers Price Index for Crude Petroleum (OS-61) as printed in the Monthly Labor Review, published by the United States Department of Labor, Bureau of Labor Statistics. In no case, however, shall the "per barrel tax" be decreased to a rate below 12.5 cents per barrel of oil produced. Such adjustment shall be determined by the tax collector.
(Ord. 83-06-908 § l; Ord. 78-6-798 § 3; Ord. 76-12-757 § 1; Ord. 70-11-667 § 1 (part): prior code § 5.08.040(A) (Ord. 64-10-569 § 1; Ord. 533 § 2 (part), 1962; Ord. 494 § 42.5(a), 1960))
The annual license tax shall be due and payable and, if not paid shall become delinquent, as follows:
B. The amount of the per-barrel tax shall be due and payable on the first day of the month next succeeding each calendar quarter, and shall become delinquent if not paid on or before the last day of said month.
(Ord. 70-11-667 § 1 (part): prior code § 5.08.040(B) (Ord. 533 § 2 (part), 1962; Ord. 494 § 42.5(b), 1960))
For the purpose of determining the per-barrel tax, the following provisions shall apply:
A. A well is located within this city if any portion of the wellhead is located within the city, irrespective of the subsurface location of the well or the producing interval thereof.
B. The calendar quarters of each year shall consist of the following: first quarter, January, February, and March; second quarter, April, May, and June; third quarter, July, August, and September; and fourth quarter, October, November, and December.
C. A barrel of oil shall consist of forty-two U.S. gallons of crude petroleum substances corrected for temperature variations in accordance with methods generally approved in the petroleum industry. "Petroleum substances" means crude oil remaining after the removal therefrom of water and other impurities by preliminary processing in the vicinity of the well site preparatory to the shipment thereof.
D. If oil produced from two or more wells is commingled without the production of the respective wells being separately measured, each well whose production has been so commingled shall be considered as having produced an equal part of the total.
E. Oil produced and shipped during a calendar quarter shall mean oil produced from a well either before or during said calendar quarter which either has been sold to another or shipped from the well site during said calendar quarter.
(Prior code § 5.08.040(C) (Ord. 533 § 2 (part), 1962: Ord. 494 § 42.5(c), 1960))
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