Dear Drebit: What is the new petroleum activity tax (PAT) rate for the second half of 2015? Sincerely, Wondering in Wooster
The PAT, for those unfamiliar with the tax, is one that impacts suppliers of motor fuel. These amount suppliers are expected to pay – the rate – is measured by the supplier’s gross receipts from the first sale, transfer, exchange or other disposition of the motor fuel in Ohio to a point outside of the distribution system. Currently, this rate is set at 0.65 percent and it will not be changing during the second half of the year.
That being said, there has been a change in the PAT that has been causing a bit of buzz (kind of like that fly that’s just close enough to be annoying, yet too far away for me to catch and enjoy for my dinner). This change is in regard to what gross receipts suppliers are expected to report. In the past, it was OK to use the supplier’s actual gross receipts. As of July 1, 2015, however, suppliers must adjust their calculation method to one that calculates gross receipts by multiplying the gallons of motor fuel sold by an average wholesale price.
Suppliers in need of help of calculating or reporting their PAT or need a second opinion to ensure that their reports are accurate and that they aren’t paying too much should reach out to one of Rea’s tax advisors for additional assistance. Those on the firm’s oil & gas team may be particularly suited to address your specific needs and concerns.
How Can Drebit Help You?
Do you have a question for Drebit? Don’t be shy! You can submit yours today by filling out the form on the top, right side on this page. You can also click here to contact one of our professionals directly.
Are you looking for more oil & gas industry advice? Check out the following articles for best practices and industry insights.
How Does Worker Classification Impact Companies In The Oil & Gas Industry?
How Can A Business Plan Prepare You For Your Future In The Oil & Gas Industry?
Looking To Stay Up-To-Date On Ohio Oil & Gas News?