Mineral lands; local property and license taxes. (SB338)

Introduced By


Passed Committee
Passed House
Passed Senate
Signed by Governor
Became Law


Local license tax; severance of gases. Defines gross receipts for purposes of the local license tax on the severance of gases as the average price received by the licensee per thousand cubic feet (MCF) of sales of gas, adjusted for production and transportation costs, multiplied by the volume of gas per MCF severed by the licensee in the locality. However, if more than 50 percent of the volume of gas sold by the licensee during the tax reporting period is sold in other than an arm's-length transaction, then the average price received would be the New York Mercantile Exchange average price of gas per MCF for the reporting period. The bill also provides two adjustments to the average price, a deduction of $0.75 per MCF for production costs and a deduction for transportation costs equal to the lesser of $0.25 per MCF or the actual transportation costs per MCF charged to the licensee for transporting gas through Federal Energy Regulatory Commission regulated pipelines. Under current law, gross receipts are measured by the fair market value of the gas at the time of sale, use, or shipment. Read the Bill »


Bill Has Passed


01/07/2014Prefiled and ordered printed; offered 01/08/14 14101929D
01/07/2014Referred to Committee on Finance
01/17/2014Impact statement from TAX (SB338)
01/28/2014Reported from Finance with substitute (14-Y 0-N) (see vote tally)
01/28/2014Committee substitute printed 14104452D-S1
01/29/2014Constitutional reading dispensed (40-Y 0-N)
01/30/2014Read second time
01/30/2014Reading of substitute waived
01/30/2014Committee substitute agreed to 14104452D-S1
01/30/2014Engrossed by Senate - committee substitute SB338S1
01/31/2014Read third time and passed Senate (40-Y 0-N)
02/07/2014Placed on Calendar
02/07/2014Read first time
02/07/2014Referred to Committee on Finance
02/12/2014Impact statement from TAX (SB338S1)
02/17/2014Reported from Finance (21-Y 0-N) (see vote tally)
02/18/2014Read second time
02/19/2014Read third time
02/19/2014Passed House BLOCK VOTE (99-Y 0-N)
02/19/2014VOTE: BLOCK VOTE PASSAGE (99-Y 0-N) (see vote tally)
02/21/2014Bill text as passed Senate and House (SB338ER)
02/21/2014Signed by Speaker
02/23/2014Signed by President
02/24/2014Impact statement from TAX (SB338ER)
03/05/2014G Approved by Governor-Chapter 179 (effective 7/1/14)
03/05/2014G Acts of Assembly Chapter text (CHAP0179)


This bill was discussed on the floor of the General Assembly. Below is all of the video that we have of that discussion, 1 clip in all, totaling 45 seconds.