N.C. Gen. Stat. § 105-187.77
Tax on severance of energy minerals
Redline — June 1, 2021 → current.View current text →
Current — June 1, 2022
As of June 1, 2021
(1) Purpose. - An excise tax is levied on the privilege of engaging in the severance of energy minerals from the soil or water of this State. The tax is imposed on the producer of the energy mineral. The purpose of the tax is to provide revenue to administer and enforce the provisions of this Article, to administer the State's natural gas and oil reclamation regulatory program, to meet the environmental and resource management needs of this State, and to reclaim land affected by exploration for, drilling for, and production of natural gas and oil. The severance tax is imposed upon all energy minerals severed when sold.
(1) Purpose. — An excise tax is levied on the privilege of engaging in the severance of energy minerals from the soil or water of this State. The tax is imposed on the producer of the energy mineral. The purpose of the tax is to provide revenue to administer and enforce the provisions of this Article, to administer the State’s natural gas and oil reclamation regulatory program, to meet the environmental and resource management needs of this State, and to reclaim land affected by exploration for, drilling for, and production of natural gas and oil. The severance tax is imposed upon all energy minerals severed when sold.
(2) Calculation of Tax. - The amount of the severance tax is calculated as follows: Condensates. - The applicable percentage rate of the gross price paid.
(2) Calculation of Tax. — The amount of the severance tax is calculated as follows: Condensates. — The applicable percentage rate of the gross price paid.
(3) Gas. - The applicable percentage rate of the market value as determined in G.S. 105-187.78.
(3) Gas. — The applicable percentage rate of the market value as determined in G.S. 105-187.78.
(4) Oil. - The applicable percentage rate of the gross price paid.
(4) Oil. — The applicable percentage rate of the gross price paid.
(5) (Effective until January 1, 2021) Oil and Condensates Rate. — The percentage rate for condensates and oil is three and one-half percent (3.5%).
(5) (Effective until January 1, 2021) Oil and Condensates Rate. — The percentage rate for condensates and oil is three and one-half percent (3.5%). (c) (Effective January 1, 2021) Oil and Condensates Rate. — The percentage rate for condensates and oil is five percent (5%).
(6) (Effective January 1, 2021) Oil and Condensates Rate. - The percentage rate for condensates and oil is five percent (5%).
(6) (Effective until January 1, 2021) Marginal Gas Rate. — The producer of a proposed or existing gas well may apply to the Commission for a determination that the well qualifies as a marginal gas well. The producer may elect to have the gas taxed at the marginal gas rate or the gas rate. For severance of gas from a marginal gas well the percentage rate is six-tenths of one percent (0.6%). (d) (Effective January 1, 2021) Marginal Gas Rate. — The producer of a proposed or existing gas well may apply to the Commission for a determination that the well qualifies as a marginal gas well. The producer may elect to have the gas taxed at the marginal gas rate or the gas rate. For severance of gas from a marginal gas well the percentage rate is eight-tenths of one percent (0.8%).
(8) (Effective January 1, 2021) Marginal Gas Rate. - The producer of a proposed or existing gas well may apply to the Commission for a determination that the well qualifies as a marginal gas well. The producer may elect to have the gas taxed at the marginal gas rate or the gas rate. For severance of gas from a marginal gas well the percentage rate is eight-tenths of one percent (0.8%).
(7) (Effective until January 1, 2021) Gas Rate. — The percentage rate for gas is set in the table below. The tax rate is applied to the delivered to market value of the gas sold. (e) (Effective January 1, 2021 until January 1, 2023) Gas Rate. — The percentage rate for gas is set in the table below. The tax rate is applied to the delivered to market value of the gas sold. (e) (Effective January 1, 2023) Gas Rate. — The percentage rate for gas is set in the table below. The tax rate is applied to the delivered to market value of the gas sold.
(10) (Effective January 1, 2021 until January 1, 2023) Gas Rate. - The percentage rate for gas is set in the table below. The tax rate is applied to the delivered to market value of the gas sold.
(11) (Effective January 1, 2023) Gas Rate. - The percentage rate for gas is set in the table below. The tax rate is applied to the delivered to market value of the gas sold.
Over Up to Rate -0- $3.00 per MCF 0.9% $3.01 per MCF $4.00 1.9% $4.01 N/A 2.9%
Over Up to Rate -0- $3.00 per MCF 0.9% $3.01 per MCF $4.00 1.9% $4.01 N/A 2.9%
Over Up to Rate -0- $3.00 per MCF 0.9% $3.01 per MCF $4.00 1.9% $4.01 $5.00 2.9% $5.01 $6.00 3.9% $6.01 $7.00 4.9% $7.01 N/A 5%
Over Up to Rate -0- $3.00 per MCF 0.9% $3.01 per MCF $4.00 1.9% $4.01 $5.00 2.9% $5.01 $6.00 3.9% $6.01 $7.00 4.9% $7.01 N/A 5%
Over Up to Rate -0- $3.00 per MCF 0.9% $3.01 per MCF $4.00 1.9% $4.01 $5.00 2.9% $5.01 $6.00 3.9% $6.01 $7.00 4.9% $7.01 $8.00 5.9% $8.01 $9.00 6.9% $9.01 $10.00 7.9% $10.01 N/A 9%
Over Up to Rate -0- $3.00 per MCF 0.9% $3.01 per MCF $4.00 1.9% $4.01 $5.00 2.9% $5.01 $6.00 3.9% $6.01 $7.00 4.9% $7.01 $8.00 5.9% $8.01 $9.00 6.9% $9.01 $10.00 7.9% $10.01 N/A 9%
History
(2014-4, s. 17(a), (d)-(f); 2016-5, s. 4.4(b); 2020-58, s. 2.8(b).)
Subsections (c) and (d) Set Out Twice. - The first versions of subsections (c) and (d) set out above are effective until January 1, 2021. The second versions of subsections (c) and (d) set out above are effective January 1, 2021.
Subsection (e) Set Out Three Times. - The first version of subsection (e) set out above is effective until January 1, 2021. The second version of subsection (e) set above is effective January 1, 2021 until January 1, 2023. The third version of subsection (e) set out above is effective January 1, 2023.
Official source: North Carolina General Assembly. Reproduced from public-domain North Carolina statutes; confirm against the official source for the current text. Not legal advice.