Tax imposed; rate of taxation; responsibility to report tax; contents of report; certain events nontaxable

Sec. 8. (a) Except as provided in subsection (f), a tax is imposed on the privilege of severing petroleum from the land and producing petroleum from a well. (b) The tax described in subsection (a) is imposed at a rate equal to the greater of: (1) one percent (1%) of the value of the petroleum; (2) three cents ($0.03) per one thousand (1,000) cubic feet (MCF) for natural gas; or (3) twenty-four cents ($0.24) per barrel for oil; at the time of the severance of petroleum from the land upon all producers and owners of such petroleum. (c) The person purchasing petroleum products or having petroleum products in the person's possession is responsible for reporting and remitting the tax at the time of sale or delivery from the place of production. The responsibility is imposed upon all purchasers and those having possession of petroleum products after severance from the ground, including petroleum gatherers. (d) Each purchaser or petroleum gatherer shall file a report on or before the last day of the month immediately following the preceding monthly period. The person shall remit the tax due under this section in conjunction with the filing of the monthly report. The reporting and remittance is to be made upon forms prescribed by the department. (e) The purchaser or petroleum gatherer must report the severance of petroleum products from the land and the payment of the tax. The report must show: (1) the total monthly amount of petroleum products severed from the land; (2) the amount and computation of the tax; (3) the names and addresses of all owners or producers or interest holders participating in the production of petroleum products; (4) the amounts paid to the various owners or producers as their interest may be; and (5) any other information the department may reasonably require. (f) The following shall not be considered taxable events under this section: (1) Petroleum produced from any well that is used to pump or treat petroleum. (2) Petroleum piped to a landowner's private buildings for the landowner's own use.