The gross production tax (GPT) on oil and gas production in Oklahoma was raised to seven percent on 6,600 producing wells in Oklahoma during the special legislative session, which brings the total number of wells producing at seven percent to approximately 50,000. The increase, combined with the GPT increase achieved in May of 2017, will generate $200 million annually for the state’s budget. Only 1,000 producing wells, approximately, remain at a rate lower than seven percent, and the GPT rate on those wells will move to seven percent within 36 months.
The increase in GPT represents the only revenue increase passed in special session. The revenue generated from that increase will be utilized to stabilize healthcare programs and services for Oklahomans after the Oklahoma Supreme Court overturned a tobacco fee this past summer resulting in a loss $215 million that had been designated for three healthcare agencies.
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