Florida Statute 211.02 - Full Text and Legal Analysis

The 2025 Florida Statutes

Title XIV
TAXATION AND FINANCE

Chapter 211
TAX ON PRODUCTION OF OIL AND GAS AND SEVERANCE OF SOLID MINERALS

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211.02 Oil production tax; basis and rate of tax; tertiary oil and mature field recovery oil.—An excise tax is hereby levied upon every person who severs oil in the state for sale, transport, storage, profit, or commercial use. Except as otherwise provided in this part, the tax is levied on the basis of the entire production of oil in this state, including any royalty interest. Such tax shall accrue at the time the oil is severed and shall be a lien on production regardless of the place of sale, to whom sold, or by whom used, and regardless of the fact that delivery of the oil may be made outside the state.

(1) The amount of tax shall be measured by the value of the oil produced and saved or sold during a month. The value of oil shall be taxed at the following rates:

(a) Small well oil, 5 percent of gross value.

(b) Tertiary oil and mature field recovery oil:

1. One percent of the gross value of oil on the value of oil $60 and below;

2. Seven percent of the gross value of oil on the value of oil above $60 and below $80; and

3. Nine percent of the gross value of oil on the value of oil $80 and above.

(2)(a) For the purposes of this section, “value” means the sale price or market price of a barrel of oil at the mouth of the well in its natural, unrefined condition. If the oil is exchanged for something other than cash, if there is no sale at the mouth of the well, or if the sale price is not indicative of the true value or market price of the oil produced, value shall be determined by the sale price of oil of like kind and quality, considering any differences in the place of production or sale.

(b) Any charges prepaid by the producer or included in the invoice price for delivery of the oil shall be deducted from the gross proceeds of the sale which are used to determine the value of oil produced, provided the oil was sold at a delivered price.

(c) The value of oil produced shall not include any wellhead or other production taxes imposed by the United States on the producer, to the extent that such taxes do not provide a credit or deduction for the tax imposed under this part.

(3)(a) The term “tertiary oil” means the excess barrels of oil produced, or estimated to be produced, as a result of the actual use of a tertiary recovery method in a qualified enhanced oil recovery project, over the barrels of oil which could have been produced by continued maximum feasible production methods in use prior to the start of tertiary recovery. A “qualified enhanced oil recovery project” means a project for enhancing recovery of oil which meets the requirements of 26 U.S.C. s. 43(c)(2) or substantially similar requirements.

(b) The department may establish the method to be used by producers to determine the taxable production of tertiary oil and may require a producer or operator to furnish any information the department deems necessary for this purpose.

(4) As used in this section, the term “mature field recovery oil” means the barrels of oil recovered from new wells that begin production after July 1, 2012, in fields that were discovered prior to 1981.

(5) Oil production shall be measured or gauged. Mechanical metering systems using meters of a type generally approved for use in the industry may be used to measure oil production. If tank tables are used to determine oil production, tables compiled to show 100 percent of the full capacity of tanks, without deduction for overage or losses in handling, shall be used; or the oil production shall be adjusted to a basis of 100 percent of the full capacity of tanks if oil production is determined using tank tables compiled to show less than 100 percent of the full capacity of tanks. Oil production shall be expressed in barrels.

(6) The tax imposed under this section shall be administered, collected, and enforced by the department.

(7) As used in this section, the term “oil” does not include gas-phase hydrocarbons that are transported into the state, injected in the gaseous phase into a natural gas storage facility permitted under part I of chapter 377, and later recovered as a liquid hydrocarbon.

History.—s. 2, ch. 22784, 1945; s. 2, ch. 23883, 1947; s. 1, ch. 77-408; s. 6, ch. 79-255; s. 19, ch. 83-339; s. 2, ch. 86-178; s. 1, ch. 2009-139; s. 6, ch. 2012-32; s. 24, ch. 2013-15; s. 2, ch. 2013-205.

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Amendments to 211.02

Annotations, Discussions, Cases:

Cases Citing Statute 211.02

Total Results: 12 | Sort by: Relevance | Newest First

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Hughes v. United States, 110 F.3d 765 (11th Cir. 1997).

Cited 67 times | Published | Court of Appeals for the Eleventh Circuit | 1997 U.S. App. LEXIS 7794, 1997 WL 157261

as regulations of the Postal Service. 39 C.F.R. § 211.2(a)(2). At the time of Hughes’ shooting, the Postal

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Small v. Sun Oil Co., 222 So. 2d 196 (Fla. 1969).

Cited 28 times | Published | Supreme Court of Florida

...se of the state's general revenue fund, and the "second oil and gas tax" consisting of 20 percent of the total tax for the county in which the oil and gas is produced for the use of the general revenue fund of the board of county commissioners. Sec. 211.02(1) (a) and (b), Fla. Stat., F.S.A. Subsection (2) of Section 211.02 states the legislative intent in imposing "two separate taxes" as follows: "(2) It is the intention of the legislature to impose the first oil and gas tax as a state excise tax and to impose the second oil and gas tax as a county ex...

...As applied to the facts before the court this construction would not alter in any way the total taxes paid by Sun Oil Company to the state or the county, although it would necessitate a slightly different allocation of the funds in the hands of the county. Section 211.02 directs that all the county severance tax go into the general revenue fund of the county....

...ative intent even though to do this it is necessary to change the literal effect of some portions of the statute? We think it is under the circumstances here present. In the case under consideration we have this situation: The excise taxes levied by Section 211.02 in 1966 actually yielded and Sun Oil Company has paid the sum of $93,003.72, of which $18,600.74 was paid to Hendry County....

...lid legislative intent can and should be accomplished. Eliminating as constitutionally invalid so much of Chapter 211 as expressly exempts from ad valorem taxes personal property employed in producing natural oil and gas we come to subsection (2) of Section 211.02, which is as follows: "(2) It is the intention of the legislature to impose the first oil and gas tax as a state excise tax and to impose the second oil and gas tax as a county excise tax to compensate the county in which oil and gas i...

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In re Checking Account Overdraft Litig., 307 F.R.D. 630 (S.D. Fla. 2015).

Cited 15 times | Published | District Court, S.D. Florida | 2015 WL 3551527

the writing.” Restatement (Second) op Contracts § 211(2) (1981) (emphasis added). Hence, that some customers

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Hirsch v. Jupiter Golf Club LLC, 232 F. Supp. 3d 1243 (S.D. Fla. 2017).

Cited 6 times | Published | District Court, S.D. Florida | 2017 WL 448952, 2017 U.S. Dist. LEXIS 56798

2012) (quoting Restatement (Second) Contracts § 211(2)). Second, under Florida law, the parol evidence

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In re Checking Account Overdraft Litig., 286 F.R.D. 645 (S.D. Fla. 2012).

Cited 6 times | Published | District Court, S.D. Florida | 2012 WL 3265093

of the writing.” Restatement (Second) Contracts § 211(2). Plaintiffs’ claims can thus be established by

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Herman v. Seaworld Parks & Ent., Inc., 320 F.R.D. 271 (M.D. Fla. 2017).

Cited 4 times | Published | District Court, M.D. Florida | 2017 U.S. Dist. LEXIS 60693, 2017 WL 1304302

irrelevant”); see also Restatement (Second) Contracts § 211(2) (a standardized contract “is interpreted wherever

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Natalie Versiglio v. Bd. of Dental Examiners of Alabama, 686 F.3d 1290 (11th Cir. 2012).

Cited 3 times | Published | Court of Appeals for the Eleventh Circuit | 2012 WL 2866091, 2012 U.S. App. LEXIS 14437

...have allowed certain approved entities to retain a percentage of state income taxes withheld from the pay of eligible employees. In addressing this issue, this Court stated: "With regard to the disposition of the proceeds from state income taxes, § 211.02[, Ala....

...fund to be used for the payment of public school teachers salaries only.' 28 Case: 10-14282 Date Filed: 07/13/2012 Page: 29 of 45 1100993 "(Emphasis added.) Section 211.02 clearly and unequivocally provides that all net proceeds of the state income tax must be used only for the two specific purposes designated therein....

...ed for the payment of public school teachers salaries only.' (Emphasis added.) "S.B. 373 permits certain approved entities to retain a percentage of state income taxes withheld from the pay of eligible employees. However, § 211.02 requires that 'all net proceeds of [the state income] tax' be used for the specific purposes set forth in § 211.02. Therefore, for S.B. 373 not to be violative of § 211.02, the percentage withheld by the approved entities must not constitute 'net proceeds of [the state income] tax.' "The Constitution of Alabama of 1901 does not define the phrase 'all net proceeds of such tax' as used in § 211.02....

...es not remit those taxes in their entirety to the State, is it possible that such retained amounts would constitute 'charges which may be rightly deducted,' rather than 'net proceeds of the tax,' so that the Act would not run afoul of § 211.02? The answer to that question is 'no.' "In Opinion of the Justices No....

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Fisher v. Sun Oil Co., 330 So. 2d 76 (Fla. 1st DCA 1976).

Cited 1 times | Published | Florida 1st District Court of Appeal | 54 Oil & Gas Rep. 420, 1976 Fla. App. LEXIS 14119

...ent Corp. v. Florida Ranchettes, Inc., Fla.App. (1st), 220 So.2d 451 (1969), and Kirk v. Smith, Fla.App. (1st), 253 So.2d 492 (1971). This becomes even more definite when we consider in para materia certain sections of Chapter 211, Florida Statutes. § 211.02, Florida Statutes, levies an excise tax upon the severing of oil or gas from the ground....

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In re Checking Account Overdraft Litig., 307 F.R.D. 656 (S.D. Fla. 2015).

Cited 1 times | Published | District Court, S.D. Florida | 2015 WL 3551555

the writing.” Restatement (Second) op Contracts § 211(2) (1981) (emphasis added). Hence, that some customers

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Ago (Fla. Att'y Gen. 1984).

Published | Florida Attorney General Reports

UNDER PART I OF CH. 211, F.S., AS IMPOSED IN SECTION 211.02, FLORIDA STATUTES? 2. IS HYDROGEN SULFIDE

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Louisiana Land & Expl. Co. v. Gibbs, 354 So. 2d 393 (Fla. Dist. Ct. App. 1978).

Published | District Court of Appeal of Florida | 1978 Fla. App. LEXIS 15134

to Section 211.13, Florida Statutes (1971). Section 211.02, Florida Statutes (1967), when Small v. Sun

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Sun Oil Co. v. Fisher, 370 So. 2d 413 (Fla. Dist. Ct. App. 1979).

Published | District Court of Appeal of Florida | 63 Oil & Gas Rep. 581, 1979 Fla. App. LEXIS 14935

an offsetting credit in the amount of their Section 211.02 excise taxes paid. The Santa Rosa County property

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