Tiny Tax Info
Tiny Tax Info is concise, current and relevant tax info for the upstream service company, vendor or supplier. Tiny Tax Info is two parts:
- New Tax info
- Current Tax Info
Current tax info is has not be amended, modified or repealed by law. New tax info is a new tax based on a new enactment, modification of current law or overturning by a judicial decision of a current tax law.
New Tax Info
Flowback services and water transfer services
Ruling December 13, 2023
Flowback services and water transfer services with vendor personnel continuously onsite to regulate or control the operation (not just monitor, maintain, repair, or activate and deactivate) the equipment as needed are nontaxable services. Possession of equipment does not transfer to the operator. https://star.comptroller.texas.gov/view/202312010M?q1=202312010M
Current Tax Info
Texas Tiny Tax Info
Texas Sales & Use and Well Service Tax
Pumping brine
Pumping brine water down tubing to test for tubing leaks is not taxable. Texas Comptroller of Public Accounts STAR System 8502L0638E03
Pumping brine
Pumping brine down the casing, or both to kill well to repair casing is taxable as repair or maintenance to real property in the field. Texas Comptroller of Public Accounts STAR System 8502L0638E03
Pumping brine
Pumping brine water into an oil tank before heating the oil in the tank to remove impurities sot the oil can be sold. Texas Comptroller of Public Accounts STAR System 8502L0638E03
Natural brine water
f) Water. The sales tax law specifically exempts the sale of water, including spring water, sparkling water, or mineral water, from sales or use tax. The exemption includes the sale of bottled water and water that a restaurant or any other food service provider sells. An exemption certificate is not required. Flavored water (carbonated or non-carbonated) is a soft drink and is taxable. See sec. 3.293 of this title (relating to Food; Food Products; Meals; Food Service) for further information on soft drinks. The sale of brine water, other than naturally occurring brine water, is taxable. Texas Tax Code Sections 151.314, 151.315, and 151.355; TAC Rule 3.318.
New Mexico Gross Receipts Tiny Tax Info
Casing
Casing is deductible from gross receipts. New Mexico Administrative Code: NMAC 3.2.209.9; New Mexico Tax Code: 7-9-52 NMSA 1978NTTC: Type 6; Deduction Code: 7-9-51
Wellhead
A wellhead purchase is deductible from gross receipts. New Mexico Administrative Code: NMAC 3.2.209.9; New Mexico Tax Code: 7-9-52 NMSA 1978 NTTC: Type 6; Deduction Code: 7-9-51
Drill stem testing
Drill stem testing during drilling is deductible from gross receipts. New Mexico Administrative Code NMAC 3.2.1.11D(1)(i) 7-9-3.4; NMSA 1978 NTTC: Type 6; Deduction Code: 7-9-51
Inspecting drill collars and drill stems
Inspection services that are related to oil and gas construction are deductible from gross receipts. New Mexico Administrative Code NMA 3.2.210.24 7-9-52; NMSA 1978 NTTC: Type 6; Deduction Code: 7-9-51