New oil and gas tax proposed

The Senate Finance Committee is calling to get rid of the progressivity tax in their new oil and gas tax plan.

The recently unveiled proposal calls for a progressive severance tax rather than a progressive surcharge.

That means that, under the new plan, a severance tax would be levied on gross production after royalties.

Also, the tax would only affect oil, thereby decoupling oil and gas.

One thing that would remain the same is the base tax rate, which sits at 25 percent.

The Committee's handling of the issue is meant to provide a more balanced profit split between the state and the oil and gas industries.