CHAPTER 1. PETROLEUM SEVERANCE TAX
IC 6-8
ARTICLE 8. MISCELLANEOUS
IC 6-8-1
Chapter 1. Petroleum Severance Tax
IC 6-8-1-1
"Person" defined
Sec. 1. As used in this chapter, "person" means any individual,assignee, receiver, commissioner, fiduciary, trustee, executor,administrator, firm, partnership, joint venture, pool, syndicate,association, corporation, limited liability company, estate, trust, orany other group or combination acting as a unit.
(Formerly: Acts 1947, c.278, s.1.) As amended by P.L.2-1988,SEC.33; P.L.109-1988, SEC.5; P.L.8-1993, SEC.102.
IC 6-8-1-2
"Department" defined
Sec. 2. As used in this chapter, "department" refers to thedepartment of state revenue.
(Formerly: Acts 1947, c.278, s.2.) As amended by P.L.2-1988,SEC.34; P.L.109-1988, SEC.6.
IC 6-8-1-3
"Taxpayer" defined
Sec. 3. As used in this chapter, "taxpayer" means any person bywhom a tax is payable under this article.
(Formerly: Acts 1947, c.278, s.3.) As amended by P.L.2-1988,SEC.35; P.L.109-1988, SEC.7.
IC 6-8-1-4
"Value" defined
Sec. 4. As used in this chapter, "value" means the price paid oroffered to be paid for petroleum of a like grade or gravity in the fieldor pool in which such well is located, and, if no such price be paid oroffered, then as determined pursuant to the rules of the department.
(Formerly: Acts 1947, c.278, s.4.) As amended by P.L.109-1988,SEC.8.
IC 6-8-1-5
"Petroleum", "natural gas", "oil", and "barrel of oil" defined
Sec. 5. (a) As used in this chapter, "petroleum" means allhydrocarbons produced at a well in a liquid or gaseous state.
(b) As used in this chapter, "natural gas" means petroleum thatmaintains a gaseous state at atmospheric conditions.
(c) As used in this chapter, "oil" means petroleum that maintainsa liquid state at atmospheric conditions.
(d) As used in this chapter, "barrel of oil" means forty-two (42)U.S. gallons of oil at sixty degrees Fahrenheit (60° F).
(Formerly: Acts 1947, c.278, s.5.) As amended by P.L.109-1988,
SEC.9.
IC 6-8-1-6
"Producer" defined
Sec. 6. As used in this chapter, "producer" means a personengaged in severing petroleum from the land direct.
(Formerly: Acts 1947, c.278, s.6.) As amended by P.L.109-1988,SEC.10.
IC 6-8-1-7
"Owner" defined
Sec. 7. As used in this chapter, "owner" means a person receivingor entitled to receive a proportionate share of petroleum or aproportionate share of the proceeds of the sale of petroleum afterproduction by an operator, and without limitation of the foregoing,includes the owners of royalties, excess royalty, overriding royalty,mineral rights, or working interest.
(Formerly: Acts 1947, c.278, s.7.) As amended by P.L.109-1988,SEC.11.
IC 6-8-1-8
Rate of taxation
Sec. 8. A tax at a rate equal to the greater of:
(1) one percent (1%) of the value of the petroleum; or
(2) three cents ($0.03) per one thousand (1,000) cubic feet(MCF) for natural gas and twenty-four cents ($0.24) per barrelfor oil;
is hereby imposed as of the time of the severance of such petroleumfrom the land, upon all producers and owners thereof as an excise forthe privilege of severing the same from the land and producing thesame from the well, except when the gas from any well is used topump or treat the same or when such gas is piped to a landowner'sprivate buildings for the landowner's own use.
(Formerly: Acts 1947, c.278, s.8.) As amended by P.L.109-1988,SEC.12.
IC 6-8-1-9
Tax liens
Sec. 9. The tax imposed by section 8 of this chapter is a lien uponsuch petroleum from the time of its severance from the land untilsuch tax and all penalties and interest accruing by reason ofnonpayment of the tax are fully paid.
(Formerly: Acts 1947, c.278, s.9.) As amended by P.L.109-1988,SEC.13.
IC 6-8-1-10
Liability for tax
Sec. 10. Any person purchasing or receiving possession of suchpetroleum prior to the discharge of such lien shall then and there be,become and remain personally liable to report and pay the amount of
such lien until the same be paid.
(Formerly: Acts 1947, c.278, s.10.)
IC 6-8-1-11
Payment of tax; right of reimbursement
Sec. 11. A person reporting and paying a tax levied under thischapter is entitled to be reimbursed by the owner or ownersimmediately upon such payment and shall deduct the amount of thepayment from anything due to the owners. A person paying anddeducting such tax is not subject to any suit or action for recovery byany person, but the remedy of such person shall be exclusively byclaim or suit for refund under the terms of this chapter.
(Formerly: Acts 1947, c.278, s.11.) As amended by P.L.2-1988,SEC.36; P.L.109-1988, SEC.14.
IC 6-8-1-12
Duties of department
Sec. 12. The department shall administer and collect the taximposed under this chapter, and shall adopt rules fixing the time andmanner of reporting, and paying, at monthly intervals the taximposed under this chapter.
(Formerly: Acts 1947, c.278, s.12.) As amended by Acts 1980,P.L.61, SEC.14; P.L.109-1988, SEC.15.
IC 6-8-1-13
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-14
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-15
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-16
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-17
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-18
Tax additional to all other taxes
Sec. 18. The tax imposed by this chapter shall be in addition to allother taxes, excises, and fees levied under any other statute.
(Formerly: Acts 1947, c.278, s.18.) As amended by P.L.2-1988,SEC.37; P.L.109-1988, SEC.16.
IC 6-8-1-19
Amount collected from tax; failure of collecting trustee to pay;offense
Sec. 19. Any person charging against or deducting from anypayment due to any other person any amount being or represented asbeing a tax levied by this chapter or receiving money or credits as orpurporting to be such a tax is a trustee of the amounts so charged,deducted, or received. A trustee who fails to pay any of thoseamounts to the department when due, with intent to evade paymentof the tax, commits a Class D felony.
(Formerly: Acts 1947, c.278, s.19.) As amended by Acts 1978, P.L.2,SEC.650.
IC 6-8-1-20
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-21
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-22
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-23
Record keeping violations; offenses
Sec. 23. (a) It is a Class C infraction for a person subject totaxation under this chapter to fail to keep and preserve such records,books, or accounts as may be necessary to determine the amount forwhich he is liable. It is a Class C infraction for such a person to failto keep and preserve such records for a period of three (3) years, orto fail to keep them open for examination at any time by thedepartment or its authorized agents.
(b) It is a Class B misdemeanor for a person to make false entriesin his books, or to keep more than one (1) set of books, with intentto defraud the state or evade the payment of the tax, or any partthereof, imposed by this chapter.
(Formerly: Acts 1947, c.278, s.23.) As amended by Acts 1978, P.L.2,SEC.651.
IC 6-8-1-24
Evasion of tax; offenses
Sec. 24. It is a Class B misdemeanor for a person to fail to makeany return required to be made under this chapter, or to make anyfalse return, with intent to defraud the state or to evade the paymentof the tax, or any part thereof, imposed by this chapter. It is a ClassB misdemeanor for a person to recklessly fail to permit theexamination of any book, paper, account, record, or other data by thedepartment or its authorized agents, as required by this chapter, to
recklessly fail to permit the inspection or appraisal of any propertyby the department or its authorized agents, or to knowingly fail tooffer testimony or produce any record as required in this chapter. Aperson who makes a false statement, with intent to defraud the stateor to evade the payment of the tax imposed under this chapter,commits a Class D felony.
(Formerly: Acts 1947, c.278, s.24.) As amended by Acts 1978, P.L.2,SEC.652.
IC 6-8-1-25
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-26
Repealed
(Repealed by Acts 1980, P.L.61, SEC.15.)
IC 6-8-1-27
Disposition of revenues
Sec. 27. (a) Money received under this chapter shall be paid bythe department into a fund to be kept by the treasurer of state andknown as the oil and gas fund.
(b) Money paid into this fund shall be devoted to the followingpurposes upon appropriation:
(1) To the expenses of administering this chapter.
(2) To the oil and gas division of the department of naturalresources for the purpose of administering IC 14-37.
(3) To research pertaining to exploration for, development of,and wise use of petroleum resources in Indiana.
(Formerly: Acts 1947, c.278, s.27.) As amended by Acts 1982,P.L.63, SEC.1; P.L.109-1988, SEC.17; P.L.1-1995, SEC.53.
IC 6-8-1-28
Reversion of oil and gas fund
Sec. 28. No part of the oil and gas fund reverts to the general fundof the state at the close of any fiscal year.
As added by P.L.109-1988, SEC.18.