Well Products Tax Table

If the states where your wells are located charge taxes on the production from those wells and the tax is calculated based upon the well production, you can set up a record for that state in the Well Product Tax Table. Once a table is added for a particular state and associated with the well, taxes will automatically be calculated and withheld from the owner's checks. These records are entered into the Well Products Tax Table window by choosing Maintain> Disbursement and JIB Files> Well Products Tax Tables from the menu. The Well Products Tax Table should only be used if the operator is responsible for withholding the tax and remitting it to the state. If the purchaser is withholding the tax on your well production, it is not necessary to use the Well Product Tax Table.

Any well that has a valid tax table code in its Well Information record and is not exempt from taxes will have taxes calculated at the given rate specified in the Well Product Tax Table. These taxes will be withheld during the run closing and will post to the Product Tax 1-4 Payable accounts chosen in the Rev Dist/JIB Posting Preferences.

Table Code
Enter the two-character code used to define these tax rates. This is the table that will be selected in each well record. You can assign any code you wish that is easy to remember.

Description
Enter a description for this table.

Oil Tax
Enter the amount of tax to be calculated on oil revenue. If the tax is to be calculated as an amount, enter the amount per BBL that should be withheld. If the tax is to be calculated as a percentage, enter the percentage of gross Oil revenue that should be withheld. Percentages should be entered as a whole percentage. For example, 5% would be entered as 5.00000.

Gas Tax
Enter the amount of tax to be calculated on gas revenue. If the tax is to be calculated as an amount, enter the amount per MCF that should be withheld. If the tax is to be calculated as a percentage, enter the percentage of gross Gas revenue that should be withheld. Percentages should be entered as a whole percentage. For example, 5% would be entered as 5.00000.

Oth Product Tax
Enter the amount of tax to be calculated on other product revenue. If the tax is to be calculated as an amount, enter the amount per OTH that should be withheld. If the tax is to be calculated as a percentage, enter the percentage of gross Other Product revenue that should be withheld. Percentages should be entered as a whole percentage. For example, 5% would be entered as 5.00000.

Tax Name
Enter the name of the tax as you wish it to appear on the Owner Distribution Statement and other various reports.

Calculate As
Severance taxes can be calculated as a dollar amount per unit or as a percentage of gross revenue.

If Amount is chosen, the rate entered is multiplied by the number of BBL, MCF or OTH in order to calculate the tax. Amounts are entered as dollar and cent amounts per BBL or MCF. For example: if oil were taxed at 10 cents a BBL, then the amount entered would be 0.100000.

If Percentage is chosen, the rate entered is multiplied by the gross dollar amount of oil, gas, or other product in order to calculate the severance tax. The tax rate should be entered as a whole percentage. For example, 5% would be entered as 5.00000.

Tax Calculation 1-4
You may specify up to four separate tax calculations for each Well Products Tax Table. These taxes can be calculated for Oil, Gas, and Other Product Revenue. Each calculation (1-4) will post to the corresponding Product Tax Payable account (1-4) set up in the Rev Dist/JIB Posting preferences.