Alabama § 40-20-21 Computation of Privilege Tax

Alabama Statutes

§ 40-20-21 — Computation of Privilege Tax

Alabama § 40-20-21

Title 40Revenue and Taxation

Ch. 20Oil and Gas

Art. 1APrivilege Tax on Certain Offshore Production

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Bluebook

Ala. Code § 40-20-21 (2026).

Text

The privilege tax levied by this chapter as it applies to offshore production from depths greater than 8,000 feet below mean sea level shall not be computed as a percentage of gross value at the point of production, as provided in Article 1, but shall be computed as a percentage of gross proceeds. The amount of the tax shall be computed at the rate of three and sixty-five one hundredths percent (3.65%) of the gross proceeds attributable to the offshore production.

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The privilege tax levied by this chapter as it applies to offshore production from depths greater than 8,000 feet below mean sea level shall not be computed as a percentage of gross value at the point of production, as provided in Article 1, but shall be computed as a percentage of gross proceeds. The amount of the tax shall be computed at the rate of three and sixty-five one hundredths percent (3.65%) of the gross proceeds attributable to the offshore production.