Environment, Education, Energy: Policy to People

“State Should Reconsider Drilling Tax Breaks, Doerflinger Says”

Lawmakers should examine tax breaks for oil and gas drilling, which have helped smother Oklahoma’s economic growth, Secretary of Finance and Revenue Preston Doerflinger said Wednesday.

Doerflinger said that the drop in gross production tax revenue is from the effect a 2010 law on how horizontal and deep wells are taxed. In 2010, a state law dropped the gross production tax rate on horizontal wells from 7 percent to 1 percent for 48 months after the start of production. Even then, the 1 percent goes to counties and school programs, not the state’s general revenue fund. The tax credits, rebates and refunds for oil and natural gas drilling totaled $321 million in the last fiscal year.

Read more at: www.tulsaworld.com

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