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A quantitative description of state-level taxation of oil and gas production in the continental U.S

Author:
Weber, Jeremy G., Wang, Yongsheng, Chomas, Maxwell
Source:
Energy Policy 2016 v.96 pp. 289-301
ISSN:
0301-4215
Subject:
carbon, income, issues and policy, oil fields, oils, property tax, United States
Abstract:
We provide a quantitative description of state-level taxation of oil and gas production in the continental U.S. for 2004–2013. Aggregate revenues from production taxes nearly doubled in real terms over the period, reaching $10.3 billion and accounting for 20% of tax receipts in the top ten revenue states. The average state had a tax rate of 3.6%; nationally, the average dollar of production was taxed at 4.2%. The oil-specific rate estimated for the study period is $2.4 per barrel or $5.5 per ton of carbon. Lastly, state-level tax rates are two-thirds higher in states excluding oil and gas wells from local property taxes, suggesting that the policies are substitutes for one another.
Agid:
5810956