Every producer of oil in Florida must file a monthly tax return. Producer means any person who:

• Owns, controls, manages, or leases oil property
• Owns, controls, manages, or leases oil wells
• Produces any taxable oil products
• Owns any royalty or other interest in any taxable product (consistent with oil production) or its value, whether the taxable product is produced by or on behalf of someone under a lease contract or otherwise

The tax is based on the value of the oil produced and saved or sold during a month. Oil is taxed at the following rates:

• Escaped oil: 12.5% of gross value
• Ordinary oil production: 8% of gross value
• Small well oil: 5% of gross value
• Tertiary oil: excise tax rate based on tiered formula

Reference: Chapter 211, Part I, Florida Statutes

File and Pay Tax

Oil production excise tax is filed monthly using the Oil Production Monthly Tax Return (Form DR-145 ), which includes instructions.

Returns and payments are due on or before the 25th day of the month following the month production occurred. If the 25th falls on a Saturday, Sunday, or state or federal holiday, returns are timely if filed electronically, postmarked or hand-delivered on the first business day following the 25th. For example, if the transaction took place during January, your tax return is due on or before February 25. A return must be filed for each month, even if no tax is due.

Taxpayers who paid $5,000 or more in severance taxes during the most recent state fiscal year (July 1 - June 30) are required to pay electronically during the next calendar year.

When you electronically pay, you must initiate your electronic payment and receive a confirmation number no later than 5:00 p.m., ET, on the business day prior to the 25th to avoid penalty and interest. For a list of the electronic payment deadlines, visit the Department's Forms and Publications webpage and select the current year Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

If you file your return or pay tax late, a late penalty of 10% of any tax due will be added for each month, or portion of a month, the return is late. The maximum late penalty cannot exceed 50% of the tax due. A minimum penalty of $50 per month, or portion of a month, applies even if no tax is due. The penalty cannot exceed $300. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on the Department's Tax and Interest Rates webpage.

Gas Production - Every producer who severs gas in Florida for sale, transport, profit, or commercial use must pay an excise tax.

The tax is based on the volume in "mcf" of gas produced and sold or used by a producer during the month. "Mcf" means 1,000 cubic feet and is the unit of measurement in the production of gas. The volume is measured at the point where the kind and quality of gas is identifiable and it is able to be transported for further use or processing.

Sulfur Production - Every producer who severs sulfur in Florida for sale, transport, storage, profit, or commercial use must pay an excise tax.

The tax is based on the long tons of sulfur produced or recovered by a producer from the hydrogen sulfide gas contained in oil or gas production from a well, measured at the point where the sulfur is in its molten, elemental state, and is capable of being sold, delivered, transported, or stored.

Every producer of gas and sulfur in Florida must file a quarterly tax return. Producer means any person who:

• Owns, controls, manages, or leases oil or gas property.
• Owns, controls, manages, or leases oil or gas wells.
• Produces any taxable gas or sulfur products.
• Owns any royalty or other interest in any taxable product (consistent with gas and sulfur production) or its value, whether the taxable product is produced by or on behalf of someone under a lease contract or otherwise.

The gas and sulfur excise tax rates are updated yearly.

Reference: Chapter 211, Part I, Florida Statutes

File and Pay Tax

Gas and sulfur production excise tax is filed quarterly using the Gas and Sulfur Production Quarterly Tax Return (Form DR-144 ), which includes instructions.

A declaration of estimated tax must be paid in monthly installments using the Declaration of Estimated Gas and Sulfur Production Tax (Form DR-144ES), which is included with Form DR-144. You must pay any balance due on your quarterly return on or before the due date on the return.

The return and any remaining balance are due on or before the 25th day of the second month following the end of each calendar quarter. If the 25th falls on a Saturday, Sunday, or state or federal holiday, returns are timely if postmarked on the first business day following the 25th. For example, the return for the first quarter, ending March 31, would be due on or before May 25. A return must be filed for each quarter, even if no tax is due.

Taxpayers who paid $5,000 or more in severance taxes during the most recent state fiscal year (July 1 - June 30) are required to pay electronically during the next calendar year.

When you electronically pay, you must initiate your electronic payment and receive a confirmation number no later than 5:00 p.m., ET, on the business day prior to the 25th to avoid penalty and interest. For a list of the electronic payment deadlines, visit the Department's Forms and Publications webpage and select the current year Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

If you file your return or pay tax late, a late penalty of 10% of any tax due will be added for each month, or portion of a month, the return is late. The maximum late penalty cannot exceed 50% of the tax due. A minimum penalty of $50 per month, or portion of a month, applies even if no tax is due. The penalty cannot exceed $300. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on the Department's Tax and Interest Rates webpage.

Every producer severing solid minerals from the soil or waters of Florida must pay an excise tax. Solid mineral means all solid minerals including, but not limited to, clay, gravel, phosphate rock, lime, shells (excluding live shellfish), stone, sand, heavy minerals, and any rare earths that have been discovered or may be discovered in the future, which are contained in the soils and waters of this state.

The tax levied on solid minerals is calculated on the value at the point of severance.

The tax levied on phosphate rock and heavy minerals applies to the total yearly production, based on bone-dry tons produced at the point of severance.

The solid mineral tax rates are updated yearly.

Reference: Chapter 211, Part II, Florida Statutes

File and Pay Tax

Solid mineral severance tax is filed annually using the Solid Mineral Severance Tax Return (Form DR-142 ), which includes instructions.

A declaration of estimated tax must be paid in installments using the Declaration/Installment Payment of Estimated Solid Mineral Severance Tax (Form DR-142ES), which is included with Form DR-142 . You must pay any balance due with your annual return on or before April 1st of the year following the taxable year.

The return and any remaining balance are due on or before April 1st of the year following the taxable year. If the 1st falls on a Saturday, Sunday, or state or federal holiday, returns and payments are timely if postmarked on the first business day following the 1st. A return must be filed annually, even if no tax is due.

Taxpayers who paid $5,000 or more in severance taxes during the most recent state fiscal year (July 1 - June 30) are required to pay electronically during the next calendar year.

When you electronically pay, you must initiate your electronic payment and receive a confirmation number no later than 5:00 p.m., ET, on the business day prior to the 20th to avoid penalty and interest. For a list of the electronic payment deadlines, visit the Department's Forms and Publications webpage and select the current year Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

If you file your return or pay tax late, a late penalty of 10% of any tax due will be added for each month, or portion of a month, the return is late. The penalty cannot exceed 50% of the total tax due. A floating rate of interest applies to underpayments and late payments of tax. Interest rates can be found on the Department's Tax and Interest Rates webpage.

The Miami-Dade County Lake Belt mitigation fee is imposed on each ton of limerock and sand, extracted in raw, processed, or manufactured form, by any person who engages in the business of extracting limerock or sand from within the Miami-Dade County Lake Belt Area and Township sections. See Section 373.4149, Florida Statutes (F.S.), for boundary description.

Beginning January 1, 2018, the Miami-Dade County Lake Belt Mitigation Fee Rates should be used indefinitely until a statutory change is enacted by law.

Reference: Section 373.41492, F.S.

File and Pay Fee

Miami-Dade County Lake Belt mitigation fee is filed monthly using the Miami-Dade County Lake Belt Mitigation Fees Return (Form DR-146 ), which includes instructions.

Returns and payments are due on the 1st and late after the 20th day of the month following each collection period. If the 20th falls on a Saturday, Sunday, or state or federal holiday, returns and payments are timely if postmarked or hand-delivered on the first business day following the 20th. A return must be filed for each collection period, even if no tax is due.

Taxpayers who paid $5,000 or more in severance taxes during the most recent state fiscal year (July 1 - June 30) are required to pay electronically during the next calendar year.

When you electronically pay, you must initiate your electronic payment and receive a confirmation number no later than 5:00 p.m., ET, on the business day prior to the 20th to avoid penalty and interest. For a list of the electronic payment deadlines, visit the Department's Forms and Publications webpage and select the current year Florida eServices Calendar of Electronic Payment Deadlines (Form DR-659) under the eServices section.

Businesses that extract oil, gas, sulfur, solid minerals, phosphate rock, or heavy minerals from the soils or waters of Florida must register to report and pay severance taxes and fees. You can register using the online registration system or complete a paper Florida Business Tax Application (Form DR-1 ).

When to Notify the Department

You must notify the Florida Department of Revenue if you:

• Change your business name;
• Change your mailing address; or
• Close or sell your business.

The quickest way to notify the Department of these changes is to update your account online.

When to Submit a New Tax Application

You must submit a new registration using the online registration or complete a paper Florida Business Tax Application (Form DR-1 ) if you:

• Change your legal entity; or
• Change the ownership of your business.

Scholarship-Funding Organizations ─ Tax Credits for Contributions

Taxpayers may make private, voluntary contributions to eligible nonprofit scholarship-funding organizations. One hundred percent of the contributions may be used as a credit to offset the tax on oil and gas production. However, the total amount of credit claimed on each return must not exceed 50% of the tax due. For more information, visit the Department's Scholarship-Funding Organizations - Tax Credits for Contributions webpage.

References: Sections 211.0251 and 1002.395, F.S.

New Worlds Reading Initiative Tax Credit

Taxpayers may make contributions to an administrator and receive a dollar-for-dollar credit against specific Florida taxes, including Florida severance taxes on oil and gas production. However, the total amount of credit claimed on each return must not exceed 50% of the tax due. For more information, visit the Department's New World Reading Initiative – Tax Credit webpage.

References: Sections 211.0252 and 1003.485, F.S.

Strong Families Tax Credit

Taxpayers may make contributions to eligible charitable organizations and receive a dollar-for-dollar credit against specific Florida taxes, including the severance taxes on oil and gas production. However, the total amount of credit claimed on each return must not exceed 50% of the tax due. For more information, visit the Department's Strong Families Tax Credit webpage.

References: Sections 211.0253 and 402.62, F.S.