2012 Note: Please double check with the Arkansas state website for current tax rates. Arkansas have a bill working its way through the state legislature that may end up on the 2012 ballot for voters.
Here are the current Arkansas severance tax rates:
Oil: 4% of market value for wells that produce 10 barrels or less per day. 5% of market value for wells that produce more than 10 barrels per day.
Natural Gas: 1.25% on marginal gas, which is defined as wells producing 250mcf or less per day. 1.5% for new discovery gas for the first 24 months of production and 1.5% for high cost gas for the first 36 months of production. 5% on all other gas production.
Coal, lignite, and iron ore – $0.02 per ton plus an additional $0.08 per ton on coal.
Gypsum – $0.015 per ton
Salt water – $2.45 per 1000 barrels from bromide extraction (additional brine)
Stone & crushed stone – $0.04 cents per ton of 2,000 lbs.
Timber (Pine) – $0.178 per ton
Timber (all other) – $0.125 per ton