The bill amends K.S.A. 79-4217 to introduce a three-year exemption from severance tax for new oil and gas wells, allowing for tax relief to encourage production in the state. The existing language regarding exemptions for the severance and production of gas and oil has been modified, with specific provisions being updated to clarify eligibility criteria. Notably, the term "which" has been replaced with "that" in several instances to enhance clarity. Additionally, the bill repeals the previous version of K.S.A. 79-4217, effectively replacing it with the new provisions outlined in this act.

The bill outlines various exemptions from the severance tax, including those for gas and oil produced under specific conditions, such as low production rates or from newly established wells. It also specifies that any taxpayer seeking an exemption must hold a valid operator's license issued by the state corporation commission. The act is set to take effect upon publication in the statute book, signaling a significant change in the state's approach to taxing oil and gas production.

Statutes affected:
As introduced: 79-4217