The expense side of oil and gas production can entail significant recurring costs for manpower and equipment for the maintenance and upkeep of the equipment at a lease site. Oftentimes the sales taxes charged on the sale of equipment or services are assessed in error by the seller or service providers. This is not necessarily intentional; many equipment or service providers do not have a firm grasp of the complex sales tax rules, regulations, exemptions and policies that pertain to oilfield services and equipment.
Sales Tax
Sales Tax and the Upstream Petroleum Industry
The upstream sector of the Petroleum industry involves companies that search for potential underground crude oil and natural gas fields, drill exploratory wells, and subsequently drill and operate the wells that recover and bring the crude oil and/or raw natural gas...
COMPTROLLER PROPOSES SIGNIFICANT CHANGES TO TAX RULE 3.334 ‘LOCAL SALES AND USE TAX’ –
RELATED TO CERTAIN ONLINE RETAILERS
Note: The Comptroller will hold public hearings on this matter on October 17, 2022 at 9:00am in Room 170 of the Stephen F. Austin Building, 1700 Congress Ave., Austin, Texas 78701. The Background. The Comptroller of Public Accounts has proposed significant additions /...
Wayfair – Texas’ Tax Responsibilities for Remote Sellers
The Texas Comptroller’s office has issued preliminary guidelines setting out the obligation of remote sellers to collect and report Texas sales taxes on sales made into Texas. A remote seller is a seller that does not have a physical presence in this state, but who sells products or services for delivery into this state.
Texas Local Tax vs. “Place of Business”
Keep in mind that this article will not cover every scenario, but it will describe the basics of selling tangible personal property when you have more than one ‘place of business’ or you drop ship the item.
South Dakota vs. Wayfair Inc.
On January 12, 2018 the U.S. Supreme Court agreed to hear the State Court case of South Dakota vs. Wayfair Inc. For many years the Supreme Court has basically punt on this white elephant issue (i.e., Federal law for the taxation of internet sales).
Sales Tax and Midstream Oil and Gas Companies
In Texas oil and gas is primarily moved by pipeline. Texas has over 425,000 miles of pipelines within its borders that represent about 1/6 of the total pipeline structure in the United States. The Pipeline safety department of the Texas Railroad Commission is charged with the responsibility of enforcing compliance with federal and state laws and regulation by the more than 1,485 pipeline operators in Texas of intrastate gathering, transmission, distribution and master-metered systems.