在二叠纪盆地任何有风的日子, 鹰滩页岩, 或者巴尼特页岩地区, the unmistakable smell of 石油 和天然气 is clearly evident in the air. When money is flowing in hand over fist, it is easy to overlook the expense side of 石油 production, 租约的发展, 修建公路, 建立一个垫, 钻井井, 油井套管, and completing the well site with 流行, 加工设备, and storage tanks for produced water and 石油. 然而, this equipment on the lease site is subject to exposure to the elements along with exposure to the corrosive nature of the produced water, 石油, 和天然气, thus requiring ongoing maintenance and detection of leaks in the wellbore, 套管, 流行, 等.
The expense side of 石油 和天然气 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, 规定, 豁免, and policies that pertain to 石油field services and equipment. These 规定 and 豁免 are primarily contained in the following rules:
- 规则324 – 石油, 气体, and Related Well Service
- 规则3.300 – Manufacturing; Custom Manufacturing; Fabricating; Processing
- 规则3.356 -房地产服务
- 规则3.357 – Nonresidential Real Property Repair, Remodeling, and Restoration; Real Property Maintenance
然而, these rules and related tax code sections are supplemented by policy letters and hearings decisions that interpret or seek to explain the application of the 豁免 and taxability of services for the 石油 和天然气 industry. 不幸的是, in 2012, the Comptroller’s office severely restricted the issuance of private letter rulings and the number of rulings that are placed on STAR (the Comptroller’s State Tax Automated Research system), 离开从业者, 运营商, and the Comptroller’s own auditors to rely on dated policy rulings and hearings.
一些监管措施似乎是明智的, 例如, cutting weeds; cleaning up 石油 spills, and mowing the grass at a well site is nontaxable. 然而, controlling the same weeds at the well site by spraying them with a weed killer is a taxable service. Labor to install a 500 barrel tank is taxable, but labor to install a 501 barrel storage tank is nontaxable new construction labor. 地下或地上的, gathering lines are treated as real property, but buried 流行 are treated as tangible personal property. Many sellers and service providers elect to err on the side of caution and impose sales tax on all of their services or sales. I recently completed a tax review for a Permian Basin operator and found vendors and service providers over collecting sales taxes. Some of the more significant errors that I run across when doing these reviews include sales taxes charged on:
- The sale of 加工设备 such as heater treaters and separators
- Running 套管 or installing a 套管 liner
- Electricity used at the lease site to power pump jacks
- 石油-soluble chemicals that become part of the product sold and are used to prevent paraffin buildup in the wellbore or used to demulsify
While many sellers of equipment and services charge sales taxes in excess, I also find in doing reviews of well operator’s records that many service providers, 特别是石油钻台公司, do not charge sales taxes correctly on their services or in many cases do not charge sales tax on services that are clearly taxable. These companies will be in for a rude awakening in the event they are audited by the Comptroller’s office.
If you are one of these companies that not sure of the taxability of the services that you provide and are over collecting sales taxes, 或者更糟, 不征收销售税, you should seek consultation with a sales tax professional that can provide you with guidance on the taxability of those services. 如果你没有征收销售税, it may be prudent to seek out a Voluntary Disclosure Agreement with the Comptroller in order to get a waiver of penalties and interest.
For a free consultation on how sales taxes apply to the services that you provide and/or to discuss seeking a Voluntary Disclosure Agreement with the Comptroller’s office feel free to contact 尊龙d88登陆. We will also provide a free consultation to discuss your upcoming Texas sales tax audit or sales tax reporting responsibilities.