This bill proposes revisions to the taxation of stripper oil wells in Montana, establishing a uniform tax rate for both pre-1999 and post-1999 stripper wells. It increases the average price threshold for a barrel of oil from $30 to $54, which determines when a reduced tax rate applies. The definitions of "pre-1999 stripper well" and "post-1999 stripper well" are amended to reflect this new price threshold, and the production criteria for these wells are updated accordingly. Additionally, the bill clarifies the computation of average prices and production for tax purposes.

The bill also amends the tax rates imposed on oil production, specifically addressing the taxation of stripper wells. It eliminates previous tax exemptions and bonuses for pre-1999 and post-1999 stripper wells, instead instituting a flat tax rate of 5% for production between 3 to 10 barrels a day and 9% for production exceeding 10 barrels a day. The legislation includes provisions for the effective date of the act upon passage and approval, with applicability set for oil production occurring on or after July 1, 2025.

Statutes affected:
LC Text: 15-36-303, 15-36-304