Vote Smart's Synopsis:

Vote to pass a bill that imposes a six percent tax on the extraction of oil and a two percent tax on the income of taxpayers and corporations engaged in petroleum business activities for the purpose of funding public education.

Highlights:

- Limits the two percent tax levied on taxpayers and corporations engaged in petroleum business activity to portions of taxable income in excess of $10 million [sec. 1 (a) & sec. 2 (a)]. - Establishes that a taxpayer is engaged in petroleum business activities, for the purposes of the Act, if more than 50 percent of their gross business receipts are derived from this industry [sec. 1 (b) (3)]. - Exempts oil produced by a stripper well with an average value of $50 or less per barrel from the imposition of the oil extraction tax. A "stripper well" is defined as a certified oil well incapable of producing an average of more than 10 barrels of oil per day [sec. 3 (g) & (42015)]. - Exempts oil owned and produced by a political subdivision of the state from the oil extraction tax [sec. 3 (42016)]. - Appropriates the revenue derived from these taxes to the Superintendent of Public Instruction to be allocated to school districts and county offices of education with the approval of the Director of Finance (Sec. 4).

Full Bill Text