2005 Idaho Code - 47-331 — ADDITIONAL TAX ON OIL AND GAS PRODUCED

                                  TITLE  47
                               MINES AND MINING
                                  CHAPTER 3
                        OIL AND GAS WELLS -- GEOLOGIC
                     INFORMATION, AND PREVENTION OF WASTE
    47-331.  ADDITIONAL TAX ON OIL AND GAS PRODUCED. (1) In addition to the
tax imposed by section 47-330, Idaho Code, there is hereby levied and imposed
on all oil or gas produced, saved and sold, or transported from the premises
in Idaho where produced, a tax equal to two percent (2%) of the market value
of the oil or gas produced at the site of production. All moneys collected
from the tax shall be remitted to the state treasurer for deposit in the oil
and gas conservation account in the dedicated fund.
    (2)  The persons owning an interest (working interest, royalty interest,
payments out of production, or any other interest), in the oil or gas, or in
the proceeds thereof, subject to the charge hereinabove provided for, shall be
liable for such tax in proportion to their ownership at the time of
production.  The tax so assessed and fixed shall be payable quarterly, and the
sum so due shall be remitted to the commission, on or before the 25th of the
next month following the preceding quarter in which the tax accrued, by the
producer on behalf of himself and all other interested persons; provided,
however, in the event of a sale of oil or gas within this state said tax may
be payable by the purchaser thereof.  Any tax not paid within the time herein
specified shall bear interest at the rate of one percent (1%) per month from
the date of delinquency until paid, and the tax, together with the interest,
shall be a lien upon all the property and rights to property, whether real or
personal, belonging to the persons responsible for paying the tax.  The person
remitting the tax, as herein provided, is hereby empowered and required to
deduct from any amounts due the persons owning an interest in the oil or gas,
or in the proceeds thereof, at the time of production a proportionate amount
of the tax before making payment to such persons.
    (3)  The tax imposed by this section shall apply to oil or gas produced
from any lands in the state of Idaho; but the tax shall not be imposed upon or
collected from oil or gas used in producing operations or for repressuring or
recycling purposes.
    (4)  To the extent that such sections are not in conflict with the
provisions of this act, the deficiency in tax and notice of deficiency as well
as the collection and enforcement procedures provided by the Idaho income tax
act, sections 63-3038, 63-3039, 63-3040, 63-3042 through 63-3065A, 63-3068,
63-3071 and 63-3075 through 63-3078, Idaho Code, shall apply and be available
to the state tax commission for enforcement of the provisions of this act and
the assessment and collection of any amounts due. Said sections shall for this
purpose be considered a part of this act and wherever liens or any other
proceedings are defined as income tax liens or proceedings they shall, when
applied in enforcement or collection under this act, be described as an oil
and gas tax lien or proceeding.
    The state tax commission may be made a party defendant in an action at law
or in equity by any person aggrieved by the unlawful seizure or sale of his
property, or in any suit for refund or to recover an overpayment, but only the
state of Idaho shall be responsible for any final judgment secured against the
state tax commission, and said judgment or any other amount erroneously or
illegally collected shall be paid or satisfied out of the state refund account
created by section 63-3067, Idaho Code.