Browse Arkansas Code titles and sections
26-58-127. Cost recovery periods for new discovery gas and high-cost gas.
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. A text match is a research starting point; applicability is not established.
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Stable record: arkansas_code:legal_authorities:26-58-127
Source file: gov.ar.code.title.26.odt
Pages: Not recorded – Not recorded
Passage SHA-256: 8eba7b1d566efea089ea17adc6d62ddd49a51260a890383f2d11bff961920bb4
Source location: content.xml paragraph 29914
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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.
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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. The source passage cites 26-58-111. This identifies an authority to review, not proof of applicability.