Instructions For Filing The Declaration Of Estimated Gas And Sulfur Production Tax (Dr-144es) printable pdf download

Instructions for Filing the Declaration of Estimated Gas

DR-144ES

R. 02/00

and Sulfur Production Tax

Page 3

Who must file a declaration of estimated tax? Every producer subject to tax, severing gas or

sulfur must file a monthly declaration of estimated tax. “Producer” means any person who owns,

controls, manages, or leases oil or gas property, or oil or gas wells, or any person who produces in

any manner any taxable product. “Producer” also includes any person owning any royalty or other

interest in any taxable product or its value, whether the taxable product is produced by, or on behalf

of, such person under a lease contract or otherwise.

When is the declaration due? A declaration of estimated tax is required to be filed on or before the

25th day of the month following each month production occurred. If the due date falls on a Saturday,

Sunday, or state or federal holiday, the declaration will not be considered late if it is postmarked on

the next working day. [For example, the declaration for November 1998 (current applied month) is

due on or before December 28, 1998.] The date of receipt by the Department, or the postmark date if

mailed, determines the timeliness of payment or filing.

How do I calculate my estimated tax payment amounts? The estimated tax means the amount

the taxpayer estimates to be the tax for the current applied month. The estimate may be based upon

current production figures or upon the previous applied month’s production times the current applied

month’s rate if current production figures are unavailable. In order to avoid penalties for

underestimation, the taxpayer must make payment of estimated tax of at least 90 percent of the

actual tax finally determined for the current applied month or an amount equal to the previous applied

month’s production multiplied by the current applied month’s rate, whichever is less.

To calculate the estimate, complete the back of Form DR-144ES. Enter the tax due based on the

previous applied month’s production. Enter the tax due on the estimated production for the current

applied month. Calculate 90 percent of the current applied month’s estimated tax. Enter the amount

of the estimated payment.

For example, if you are calculating the estimate for the month of July 1998 (current applied month),

which is due on or before August 25, 1998, you should first look at June, 1998 (previous applied

month’s production). Enter on line 1, the previous applied month’s production for June 1998. Enter on

line 2, the current applied month’s tax rate. Multiply line 1 by line 2 and enter the total on line 3. On

line 5, enter 90 percent of the amount on line 4. If you do not have final figures and are unsure of the

amount of production in July 1998, you should enter on line 6 the total amount from line 3 to ensure

that a penalty is not assessed for underestimating. If you do have final figures and are sure of the

amount of production in July 1998, you may remit 90 percent of the current applied month’s tax,

and not incur a penalty for underestimating.

Filing of quarterly return: A quarterly return (Form DR-144) is due on or before the 25th of the

second month following the calendar quarter. Quarterly returns with current tax rates will be

mailed to you during the second month of each quarter.

Electronic funds transfer (EFT): Any taxpayer who paid more than $50,000 in severance

taxes between July 1 and June 30 (the state’s fiscal year) is required to remit taxes by EFT in the

following calendar year. For more information, contact the Electronic Funds Transfer Program,

P. O. Box 2096, Tallahassee, FL 32316-2096; or call 850-487-7972.

Instructions For Filing The Declaration Of Estimated Gas And Sulfur Production Tax (Dr-144es)