§ 26-58-208 - Amounts of credits or tax -- Maximum annual credits allowed. - Arkansas Statutes

26-58-208. Amounts of credits or tax -- Maximum annual credits allowed.

(a) The oil producer shall be entitled to a credit on the severance tax due during the reporting period in the amount of the cost, as defined in 26-58-209, of the oil producer in maintaining, during such reporting period, an approved underground salt water disposal system.

(b) (1) If the cost of maintaining such approved underground salt water disposal system during the reporting period is less than the total severance tax due for the reporting period, the oil producer shall pay to the Director of the Department of Finance and Administration the amount that the total tax exceeds the cost.

(2) (A) In the event the cost of maintaining the approved underground salt water disposal system during the tax reporting period exceeds the total severance tax due during such period, the oil producer shall be given a credit for the total severance tax due for such reporting period.

(B) However, in no event shall such oil producer be permitted to credit such excess of cost over the total severance tax due for such reporting period to any oil severance tax that may have been paid, or that may become due, during any previous or subsequent tax reporting period.

(c) (1) The total severance tax credits allowed all oil producers during any calendar year by the director shall not exceed three hundred seventy thousand dollars ($370,000).

(2) If during any calendar year the total severance tax credits of all oil producers operating approved underground salt water disposal systems exceed the total maximum allowable severance tax credits mentioned above, the director shall prorate the allowable credits among the respective oil producers in the proportion that the credits due each producer bear to the total of all severance tax credits due all oil producers.