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26-58-111. Rate of tax — Definition.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-58-111. Rate of tax — Definition.
The severance tax is to be predicated upon the quantity severed and at the following rates:
(1) On barite, bauxite, titanium ore, manganese and manganiferous ores, zinc ore, and cinnabar, fifteen cents (15¢) per ton of two thousand pounds (2,000 lbs.);
(2) On coal, lignite, and iron ore, two cents (2¢) per ton of two thousand pounds (2,000 lbs.);
(3) On gypsum not used for manufacturing within Arkansas into ultimate consumer's goods, or sold for manufacturing within Arkansas into ultimate consumer's goods, and chemical grade limestone, silica sand, and dimension stone, one and one-half cents (1½¢) per ton of two thousand pounds (2,000 lbs.);
(4) On crushed stone including, but not limited to, chert, granite, slate, novaculite, and limestone, and on construction sand, gravel, clay, chalk, shale, and marl, one cent (1¢) per ton of two thousand pounds (2,000 lbs.);
(5) On natural gas, the following percent of the market value of the natural gas severed within the State of Arkansas:
(A) On new discovery gas, as defined in § 26-58-101, the severance tax rate shall be one and one-half percent (1.5%) for the time period provided in § 26-58-127(a);
(B) On high-cost gas, as defined in § 26-58-101, the severance tax rate shall be one and one-half percent (1.5%) for the time periods provided in § 26-58-127(b);
(C) On marginal gas, as defined in § 26-58-101, the severance tax rate shall be one and one-quarter percent (1.25%); and
(D) On all natural gas that is not defined as new discovery gas, high-cost gas, or marginal gas, the severance tax rate shall be five percent (5%);
(6)(A) On oil, five percent (5%) of the market value at time and point of severance.
(B) However, whenever the production of oil from a well which is
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-58-111
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-58-111
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 9ca06a6c728bd751d0c6631d223e2d5e16a2a7a373ee90c9895694f912b907ae
Source location: content.xml paragraph 29602
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26-58-111. Rate of tax — Definition.
The severance tax is to be predicated upon the quantity severed and at the following rates:
(1) On barite, bauxite, titanium ore, manganese and manganiferous ores, zinc ore, and cinnabar, fifteen cents (15¢) per ton of two thousand pounds (2,000 lbs.);
(2) On coal, lignite, and iron ore, two cents (2¢) per ton of two thousand pounds (2,000 lbs.);
(3) On gypsum not used for manufacturing within Arkansas into ultimate consumer's goods, or sold for manufacturing within Arkansas into ultimate consumer's goods, and chemical grade limestone, silica sand, and dimension stone, one and one-half cents (1½¢) per ton of two thousand pounds (2,000 lbs.);
(4) On crushed stone including, but not limited to, chert, granite, slate, novaculite, and limestone, and on construction sand, gravel, clay, chalk, shale, and marl, one cent (1¢) per ton of two thousand pounds (2,000 lbs.);
(5) On natural gas, the following percent of the market value of the natural gas severed within the State of Arkansas:
(A) On new discovery gas, as defined in § 26-58-101, the severance tax rate shall be one and one-half percent (1.5%) for the time period provided in § 26-58-127(a);
(B) On high-cost gas, as defined in § 26-58-101, the severance tax rate shall be one and one-half percent (1.5%) for the time periods provided in § 26-58-127(b);
(C) On marginal gas, as defined in § 26-58-101, the severance tax rate shall be one and one-quarter percent (1.25%); and
(D) On all natural gas that is not defined as new discovery gas, high-cost gas, or marginal gas, the severance tax rate shall be five percent (5%);
(6)(A) On oil, five percent (5%) of the market value at time and point of severance.
(B) However, whenever the production of oil from a well which is measured separately or from a group of wells which is measured separately, including any well or wells that are utilized for the injection of salt water or other effluents for pressure maintenance or secondary recovery purposes, averages ten (10) barrels or less per well per day during any calendar month, the privilege or license tax on oil produced from that well or group of wells during that month shall be computed at the rate of four percent (4%) of the market value at time and point of severance.
(C) The Secretary of the Department of Finance and Administration shall have the power to promulgate such reasonable rules as shall be necessary to effectively enforce the foregoing provisions;
(7) On timber, the tax shall be collected, reported, and remitted by each primary processor and shall be computed on the weight of such timber as determined at the last time the timber is weighed prior to undergoing the first processing after severance thereof and shall be at the following rates:
(A) On all pine timber, seventeen and eight-tenths cents (17.8¢) per ton of two thousand pounds (2,000 lbs.);
(B) On all other timber, twelve and five-tenths cents (12.5¢) per ton of two thousand pounds (2,000 lbs.); and
(C)(i) If any primary processor of timber is unable to weigh the timber as required herein because an approved weight scale is not available, the primary processor shall use the following conversion factors to convert other measurements of timber to weight:
PRODUCT CONVERSION FACTORS SAWTIMBER: Pine 16,000 Lbs./MBF Doyle All Other 16,000 Lbs./MBF Doyle PULPWOOD: Pine 5,000 Lbs./Cord-128 Cu. Ft. All Other 6,000 Lbs./Cord-128 Cu. Ft. POSTS OR POLES: Less than 10' in length 30 Posts/Ton POSTS OR POLES: 10'—16' in length 15 Posts/Ton POLES OR PILING: Greater than 16' in length 40 Lineal Ft./Ton SPLIT CORDS 6,000 Lbs./Cord-128 Cu. Ft. VENEER CORDS 5,000 Lbs./Cord-128 Cu. Ft. HANDLE AND OTHER CORDS 6,000 Lbs./Cord-128 Cu. Ft. CHEMICAL CORDS 6,000 Lbs./Cord-128 Cu. Ft. WHOLE TREE CHIPS: Pine 5,000 Lbs./Cord-128 Cu. Ft. All Other 6,000 Lbs./Cord-128 Cu. Ft.
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(ii) If the above conversion factors are not appropriate for conversion of any particular measurement of timber to weight, the secretary, with the advice and approval of the Arkansas Forestry Commission, shall develop an appropriate conversion procedure to produce equivalent rates;
(8) On diamonds, fuller's earth, ochre, natural asphalt, native sulphur, salt, pearls and other precious stones, whetstone, novaculite, and on all other natural resources, except gypsum, not otherwise specifically identified under the severance tax laws of this state, except mussel shells, five percent (5%) of the fair market value at the time of severance;
(9) On salt water whose naturally dissolved components, or solutes, are used as source raw materials for bromine and other products derived from the same salt water used in the bromine production, two dollars and forty-five cents ($2.45) per one thousand (1,000) barrels, forty-two thousand United States gallons (42,000 U.S. gals.); and
(10)(A) Except as provided in subdivision (10)(B) of this section, on all other natural resources not otherwise specifically identified under the severance tax laws of this state, five percent (5%) of the market value at time and point of severance.
(B)(i) Biomass used primarily for the purpose of biofuel production is not subject to a severance tax.
(ii) As used in subdivision (10)(B)(i) of this section, “biomass” means any woody biomass that is grown for use in biofuels and is not grown for the production of other timber products.
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Arkansas Code — all titles (historical 2020) · legal_authorities
26-58-101. Definitions.
As used in this subchapter:
(1) “Acquired”, when used in reference to the severance tax on timber, means the time when timber is first weighed or measured by a primary processor after severance;
(2) “Completion” or “completed” means the act of making a well capable of producing gas;
(3) “Conventional gas well” means any gas well that is not classified as a high-cost gas well;
(4) “Date of first production”, when used in reference to a particular gas well, means the first day in the month that the gas well produces natural gas for sale;
(5) “High-cost gas” means natural gas that is:
(A) Produced from any gas well completed within a shale formation, including, but not limited to, the Fayetteville Shale, the Woodford Shale, the Moorefield Shale, and the Chattanooga Shale formations, or their stratigraphic equivalents, as described in published stratigraphic nomenclature recognized by the Arkansas Geological Survey;
(B) Produced from any gas well in which the production is from a completion that is located at a depth of more than twelve thousand five hundred feet (12,500') below the surface of the earth, where the term “depth” means the length of the maximum continuous drilling string of drill pipe used between the drill bit face and the drilling rig's kelly bushing;
(C) Produced from a tight gas formation;
(D) Produced from geopressured brine; or
(E) Occluded natural gas produced from coal seams;
(6) “High-cost gas well” means any gas well that is completed as a well capable of producing high-cost gas;
(7)(A) “Marginal gas”, when used in reference to a conventional gas well, means all natural gas produced from the conventional gas well beginning on the date the conventional gas well is incapable of producing more than two hu
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-58-101
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-58-101. This identifies an authority to review, not proof of applicability.
Arkansas Code — all titles (historical 2020) · legal_authorities
26-58-127. Cost recovery periods for new discovery gas and high-cost gas.
(a)(1) The one-and-one-half-percent severance tax rate on new discovery gas shall apply to the first twenty-four (24) consecutive calendar months beginning on the date of first production from the new discovery gas well, regardless of whether production commenced prior to January 1, 2009; provided, however, that all production attributable to the period prior to January 1, 2009, shall be taxed at the rate in effect prior to January 1, 2009.
(2) At the end of the twenty-four-month period, the severance tax rate under § 26-58-111(5)(C) or § 26-58-111(5)(D), as applicable, shall apply.
(b)(1) The one-and-one-half-percent severance tax rate on high-cost gas shall apply to the first thirty-six (36) consecutive calendar months beginning on the date of first production from the high-cost gas well, regardless of whether production commenced prior to January 1, 2009; provided, however, that all production attributable to the period prior to January 1, 2009, shall be taxed at the rate in effect prior to January 1, 2009.
(2) If a high-cost gas well has not achieved payout by the end of the thirty-six-month period, the one-and-one-half-percent severance tax rate shall be extended until the earlier to occur of:
(A) Payout of the high-cost gas well; or
(B) Twelve (12) months following the expiration of the original thirty-six-month period.
(3) The severance tax rate under § 26-58-111(5)(C) or § 26-58-111(5)(D), as applicable, shall apply to high-cost gas at the later of the expiration of the thirty-six-month period or any allowed extension.
Source: Arkansas Code — historical release 78 (November 6, 2020) · 26-58-127
Stored review status: Historical 2020-11-06 source release; later amendments not reconciled; machine-extracted, not independently legally reviewed; source heading status: text_in_historical_source. The source passage cites 26-58-127. This identifies an authority to review, not proof of applicability.