Alaska Administrative Code — Title 15 (Revenue)

15 AAC 55.514

Installment payments of estimated tax for oil and gas produced after

Official textakleg.govlast amended Jan 11, 202220 subsections

December 31, 2021.

# (a)

For purposes of the calculations described in AS 43.55.020(a)(7)(A)(ii) for oil produced after December 31, 2021,

# (1)

the gross value at the point of production of the oil produced is calculated only for oil taxable under AS 43.55.011(e) and subject to AS 43.55.011(f)(2);

# (2)

the applicable percentage of the gross value at the point of production is determined under AS 43.55.011(f)(2) but substituting the phrase "the month for which the installment payment is calculated" for the phrase "the calendar year for which the tax is due."

# (b)

For purposes of the calculations described in AS 43.55.020(a)(7)(A)(iii) for oil produced after December 31, 2021, if the gross value at the point of production of the oil produced during the month for which the installment payment is calculated is reduced under AS 43.55.160(f) or under AS 43.55.160(f) and (g) in the calculation of an annual production tax value under AS 43.55.160(h), the gross value at the point of production is also reduced in the calculation of the installment payment.

# (c)

For purposes of the calculations described in AS 43.55.020(a)(7)(B) for oil produced after December 31, 2021, the gross value at the point of production of the oil and the deductible adjusted lease expenditures for determining production tax value as provided in AS 43.55.160(h)(2) are calculated only for oil taxable under AS 43.55.011(e) other than leases or properties subject to AS 43.55.011(p).

# (d)

For purposes of the calculations described in AS 43.55.020(a)(7)(C) for leases or properties subject to AS 43.55.011(p), and as limited by AS 43.55.020(a)(8), for oil and gas produced after December 31, 2021, the amount of the monthly installment payment is equal to the lesser of

# (1)

35 percent of the production tax value of oil for the month plus 13 percent of the gross value at the point of production for gas produced during the month; or

# (2)

four percent of the gross value at the point of production of oil and gas produced during the month.

# (e)

For purposes of the calculations described in AS 43.55.020(a)(7)(D) for oil produced from leases or properties no part of which is north of 68 degrees North latitude after December 31, 2021, the gross value at the point of production of the oil produced and the deductible adjusted lease expenditures as provided in AS 43.55.160(h)(4)(B) are calculated only for oil taxable under AS 43.55.011(e)(3) and not subject to AS 43.55.011(k) or (p).

# (f)

For purposes of the calculations described in AS 43.55.020(a)(7)(E) for gas produced from leases or properties outside the Cook Inlet sedimentary basin, other than a lease or property subject to AS 43.55.011 (o) or (p), 13 percent of the gross value at the point of production of the gas produced from each lease or property.

# (g)

For purposes of the calculations described in AS 43.55.020(a)(7)(F) for oil produced from leases or properties in the Cook Inlet sedimentary basin subject to AS 43.55.011(k), and as limited by AS 43.55.020(a)(10), after December 31, 2021, the gross value at the point of production of the oil produced and the deductible adjusted lease expenditures as provided in AS 43.55.160(h)(4)(A) are calculated only for oil taxable under AS 43.55.011(e)(3).

# (h)

For purposes of the calculations described AS 43.55.020(a)(7)(G) for gas produced from leases or properties in the Cook Inlet sedimen- tary basin subject to AS 43.55.011(j), and gas subject to AS 43.55.011(o), as limited by AS 43.55.020(a)(10), after December 31, 2021, the gross value at the point of production of the gas produced is calculated only for gas taxable under AS 43.55.011(e)(3).

# (i)

Where the calculation of an installment payment of estimated tax under AS 43.55.020(a) calls for subtracting 1/12 of the producer's adjusted lease expenditures for the calendar year of production under AS 43.55.165 and 43.55.170 that are deductible for specified oil or gas, those lease expenditures include lease expenditures that are described in AS 43.55.165(a)(3), but only the following portion of those lease expenditures described in AS 43.55.165(a)(3) is subtracted:
1/12 of the adjusted lease expenditures described in AS 43.55.165(a)(3) that are actually deducted in calculating the annual production tax value for the calendar year for the oil under AS 43.55.160(h).

# (j)

For the purposes of calculating the installment payment required under AS
43.55.020(a)(3), the amount under

# (1)

AS 43.55.020(a)(3)(A) is calculated separately for each lease or property and may not be less than zero;

# (2)

AS 43.55.020(a)(3)(B) is calculated separately for each lease or property and may not be less than zero.

# (k)

For oil or gas produced by a municipal entity,

# (1)

an installment payment under AS 43.55.020(a) is calculated only for oil or gas that the municipal entity sells to another party;

# (2)

where the calculation of an installment payment under AS 43.55.020(a) calls for deducting 1/12 of the producer's adjusted lease expenditures for a calendar year that are deductible under AS 43.55.160, the amount of deductible adjusted lease expenditures for the calendar year is subject to 15 AAC 55.208(b).
(Eff. 1/11/2022, Register 240)
Statutory Authority:
Authority:
AS 43.05.080 AS 43.55.110 AS 43.55.895
AS 43.55.011 AS 43.55.160
AS 43.55.020 AS 43.55.165

Amendment history

Eff. 1/11/2022, Register 240

Source: official source document (full AAC Title 15 PDF)

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