Wednesday, March 26, 2008

Majority of gas wells qualify for exemption under Beebe's tax plan

Majority of [Gas] wells qualify for exemptions under Beebe's tax plan

Last Update: 3/25 8:29 am

LITTLE ROCK (AP) - The vast majority of the Arkansas' natural gas wells qualify for exemptions reducing their tax rates under a severance tax proposal to be considered at a special session later this month, according to state data.
Only 5 percent of the state's wells are classified as wells that would pay the full tax rate that has been proposed by Gov. Mike Beebe as a way to fund additional highway improvements, according to numbers provided by the Arkansas Department of Finance and Administration and the state Oil and Gas Commission.
Beebe last week announced that he would call a special session beginning March 31 to consider raising the tax for the first time since 1957, saying he has more than enough votes necessary in both chambers to pass the tax hike. Beebe's proposal would place a 5 percent base tax on gas-sale proceeds received by producers with lowered rates for some wells. Passing the tax hike requires 27 votes in the Senate and 75 in the House.

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