(A) In addition to all other taxes provided by law, there is hereby levied a tax on oil produced within the city of $.02 per barrel of 42 standard gallons. The tax shall be computed upon the total barrels of oil produced or salvage through the earth within the city and shall be based upon tank tables showing 100% of production and exact measurements of contents. Provided, however, that the tax herein levied on oil shall be 2% of the market value of the oil whenever the market value thereof is below $1 per barrel of 42 standard gallons. The market value of oil, as that term is used herein, shall be the actual market value thereof, plus any bonus or premiums or any other things of value paid therefor or which the oil will reasonably bring if produced in accordance with the laws of the United States, the state, and the city.
(B) The tax hereby levied shall be a liability of the producer of oil and it shall be the duty of the producer to keep accurate records of all oil produced, making semi-annual reports as hereinafter provided.
(C) The purchaser of oil shall pay the tax on all oil purchased and deduct tax so paid from payment due producer or other interest holder, making the payments due deducted to the City Secretary by legal tender or cashier's check payable to the City Secretary. If the oil produced is not sold during the semi-annual period in which produced, then the producer shall pay the tax at the same rate and in the manner as if the oil were sold.
(D) The tax levied herein shall be paid semi-annually on or before August 31 on oil produced during the preceding first six months of the calendar year and on or before January 31 on oil produced during the preceding last six months of the preceding calendar year by the purchaser or producer as the case may be, but in no event shall a producer be relieved of responsibility for the tax until same shall have been paid, and provided, in event the amount of the tax herein levied shall be withheld by a purchaser from payments due a producer and the purchaser fails to make payment of the tax to the city as provided herein, the producer upon paying the tax shall be subrogated to the right of the city to collect from the purchaser the tax, penalties, and interest which may have otherwise accrued by failure to make payments as hereinafter stated.
(E) It is further provided that unless the payment of tax on all oil produced during any six months period shall be made on or before the dates specified above, the payment shall become delinquent and a penalty of 5% of the amount of the tax shall be added, whereupon the tax and penalty shall bear interest at the rate of 3% per annum from the date due until date paid.
(F) The tax herein levied shall be borne ratably by all interested parties, including royalty interests, and producers and/or purchasers of oil are hereby authorized and required to withhold from any payment due interested parties the proportionate tax due.
(G) The city shall have a lien in and upon each oil well and the equipment incident thereto, together with the respective interests of all parties therein, to secure the payment to the city of all taxes due hereunder on oil produced from the oil well; and this lien shall be in addition to any other liens and methods provided herein or by law for the collections of taxes.
(Ord. 59-311, passed 3-11-1959)