Kansas Oil and Gas Resources Fund, Inc.

In Kansas, the Kansas Oil and Gas Resources Fund, Inc. ("Fund") is a tax on Working Interest revenue to provide better public understanding of the current energy challenges.

If the "Fund" is deducted by the purchaser on the check you receive:
1) On the Division of Interest window give each owner with a "Working Interest" an interest in Oil and Gas Tax 2, or any of the Tax classes that you have not been using. Make sure that only Working Interest owners have a percentage in the tax class that you use. Also, make sure that all of the interests in the tax class you use add up to 100% in each well.
2) You will enter the assessment when you enter the check that the purchaser sent you. Just make an additional detail line using the tax class that you chose and enter it as a positive amount.

If you are responsible to remit the Fund to the state:
You will have to set up the Division of Interest for a currently unused tax class. We will use Tax Class 2 for this example also. Then you can either manually enter the amount of tax to withhold each month or set up a tax table so that it automatically calculates the amount each month.

Manually Entering the taxes:
1) Set up the Division of Interest for the Working Interest owners in tax class 2. Be sure that the total interest for all the Working Interest owners in tax class 2 is equal to 100%.
2) Make sure that the taxes tab of the well information window has the option marked that "Purchaser withholds gas tax 2." (This is necessary to keep the system from automatically calculating the tax also, and for proper posting during the run closing.)
3) Manually enter the tax that needs to be withheld for each well on the Well Revenue by Well (8/8ths) window.
NOTE: You can use whichever tax class you wish, as long as you don't already use it for something else. Just make sure the corresponding check box is marked on the well information window.

Automatically calculating the taxes:
1) Set up a tax table (or add to a current tax table) under tax class 2 to be withheld from the well.
2) Set up the Division of Interest window with each owner's percentage in the same class that you use on the tax table. Since this will automatically calculate based on the total revenue instead of just the Working Interest owners share, you will have to assign an interest to a "Dummy" owner for the Royalty interest owners share.
3) The taxes will automatically be calculated based on the revenue entered so after it is set up you will not need to do anything else.