Instructions For Form Dr-144es - The Declaration Of Estimated Gas And Sulfur Production Tax


Instructions for Filing the Declaration of Estimated Gas
R. 04/03
and Sulfur Production Tax
Page 3
To calculate the estimate, complete the back of
Who must file a declaration of estimated
tax? Every producer subject to tax, severing
Form DR-144ES. Enter the tax due based on
gas or sulfur must file a monthly declaration of
the previous applied month’s production. Enter
estimated tax. “Producer” means any person
the tax due on the estimated production for the
who owns, controls, manages, or leases oil or
current applied month. Calculate 90 percent of
gas property, or oil or gas wells; or any person
the current applied month’s estimated tax.
who produces in any manner any taxable
Enter the amount of the estimated payment.
product. “Producer” also includes any person
owning any royalty or other interest in any
For example, if you are calculating the estimate
taxable product or its value, whether the
for the month of July 2003 (current applied
taxable product is produced by, or on behalf of,
month), which is due on or before August 25,
such person under a lease contract or
2003, you should first look at June 2003
(previous applied month’s production). On
line 1, enter the previous applied month’s
When is the declaration due? A declaration
production for June 2003. On line 2, enter the
of estimated tax is required to be filed on or
current applied month’s tax rate. Multiply line 1
before the 25th day of the month following
by line 2 and enter the total on line 3. On
each month production occurred. If the due
line 5, enter 90 percent of the amount on line 4.
date falls on a Saturday, Sunday, or state or
If you do not have final figures and are unsure
federal holiday, the declaration will not be
of the amount of production in July 2003, you
considered late if it is postmarked on the next
should enter on line 6 the total amount from
working day. [For example, the declaration for
line 3 to ensure that a penalty is not assessed
January 2003 (current applied month) is due
for underestimating. If you do have final
on or before Febuary 25, 2003.] The date of
figures and are sure of the amount of
receipt by the Department, or the postmark
production in July 2003, you may remit
date if mailed, determines the timeliness of
90 percent of the current applied month’s tax
payment or filing.
and you will not incur a penalty for
How do I calculate my estimated tax
payment amounts? The estimated tax means
Filing of quarterly return: A quarterly return
the amount the taxpayer estimates to be the
(Form DR-144) is due on or before the 25th of
tax for the current applied month. The estimate
the second month following the calendar
may be based upon current production figures
quarter. Quarterly returns with current tax rates
or upon the previous applied month’s
will be mailed to you during the second month
production times the current applied
of each quarter.
month’s rate if current production figures
are unavailable. In order to avoid
Electronic Funds Transfer (EFT): Any
penalties for underestimation, the
taxpayer who paid more than $30,000 in
taxpayer must make payment of estimated
severance taxes between July 1 and June 30
tax of at least 90 percent of the actual tax
(the state’s fiscal year) is required to remit
finally determined for the current applied
taxes by EFT in the following calendar year.
month or an amount equal to the previous
For additional information regarding EFT
applied month’s production multiplied by
requirements and procedures, visit the
the current applied month’s rate,
Department’s Internet site or contact Taxpayer
whichever is less.
Services (see “For Information and Forms” on


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