Form Dr-144es - Declaration Of Estimated Gas And Sulfur Production Tax (Page 3 of 4) in pdf

DR-144ES

R. 08/08

Page 9

Instructions for Filing the Declaration of Estimated Gas

and Sulfur Production Tax

Who must file a declaration of estimated tax?

Complete the back of Form DR-144ES to calculate the

estimated payment amount due. Enter the tax due

Every producer severing gas or sulfur and subject to

based on the previous month’s production. Enter the

tax must file a monthly declaration of estimated tax.

“Producer” means “any person who owns, controls,

tax due on the estimated production for the current

manages, or leases oil or gas property, or oil or gas

month. Calculate 90 percent of the current month’s

estimated tax. Enter the amount of the estimated

wells; or any person who produces in any manner any

taxable product.” “Producer” also includes “any person

payment.

owning any royalty or other interest in any taxable

For example, if you are calculating the estimate for

product (consistent with gas and sulfur production) or

its value, whether the taxable product is produced by,

the month of July 2008 (current month), which is due

or on behalf of, such person under a lease contract or

on or before August 25, 2008, you should first look at

June 2008 (previous month’s production). On Line 1,

otherwise.”

enter the previous month’s production for June 2008.

When is the declaration due? A declaration of

On Line 2, enter the current month’s tax rate. multiply

estimated tax must be filed on or before the 25th day of

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

the month following each month production occurred.

If the due date falls on a Saturday, Sunday, or state or

do not have final figures and are unsure of the amount

federal holiday, the declaration will not be late if it is

of production in July 2008, you should enter on Line 6

the total amount from Line 3 to ensure that a penalty

postmarked on the next business day. [For example,

the declaration for January 2008 (current applied month)

is not assessed for underestimating. If you do have

is due on or before February 25, 2008.] The day we

final figures and are sure of the amount of production

in July 2008, you may send in 90 percent of the current

receive your payment or filing (or the postmark date if

mailed), determines the timeliness of payment or filing.

month’s tax due and you will not incur a penalty for

underestimating.

how do I calculate my estimated tax payment

amounts? Estimated tax means the amount the

Filing of quarterly return: A quarterly return (Form

taxpayer estimates to be the tax due for the current

DR-144) is due on or before the 25th of the second

month. The estimate may be based on current

month following the calendar quarter. We will mail

quarterly returns with current tax rates to you during the

production figures or on the previous month’s

production multiplied by the current month’s rate (if

second month of each quarter.

current production figures are unavailable). To avoid

Electronic Funds Transfer (EFT): Any taxpayer who

penalties for underestimating tax due, the taxpayer

must pay at least 90 percent of the actual tax due for

paid more than $20,000 in severance taxes between

the current month or an amount equal to the previous

July 1 and June 30 (the state’s fiscal year) must send

in their taxes by EFT in the following calendar year.

month’s production multiplied by the current month’s

For more information about EFT requirements and

rate, whichever is less.

procedures, visit our Internet site or contact Taxpayer

Services (see “For Information and Forms” on reverse).

Form Dr-144es - Declaration Of Estimated Gas And Sulfur Production Tax Page 3

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