{ "meta": { "title": "State tax on royalty income", "release": "2026.10.1", "release_date": "2026-10-06", "url": "https://americanmineralregistry.com/research/oil-and-gas-severance-tax-by-state", "note": "Rows checked against the cited source on the access date; not tax advice. Severance rates only where reviewed." }, "income_tax": [ { "id": "AL", "state": "Alabama", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Alabama tax on income from property owned in Alabama, residents are taxed on income from sources within and outside Alabama, and the 2025 Form 40NR instructions report royalties from mineral leases on Schedule E with royalties from property located in Alabama listed separately.", "source_url": "https://alison.legislature.state.al.us/code-of-alabama?section=40-18-2", "source_pinpoint": "Code of Alabama s. 40-18-2(a)(1) and (a)(6)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "AK", "state": "Alaska", "broad_personal_income_tax": "no", "note": "Alaska has no individual income tax, because the state net income tax in AS 43.20 does not apply to an individual, so an individual's royalty income is not taxed by the state.", "source_url": "https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.20.011&secEnd=43.20.013", "source_pinpoint": "AS 43.20.012(a)(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "AZ", "state": "Arizona", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Arizona tax on all income derived from Arizona sources and the 2025 Form 140NR instructions put rent or royalty income earned on Arizona properties in the Arizona column, while the tax reaches the entire taxable income of every resident.", "source_url": "https://www.azleg.gov/ars/43/01091.htm", "source_pinpoint": "A.R.S. 43-1091(A)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "AR", "state": "Arkansas", "broad_personal_income_tax": "yes", "note": "Nonresidents who earn income from real or tangible personal property located in Arkansas owe Arkansas income tax while their income from intangible property is not taxed, and residents report income received as Arkansas residents no matter where it was earned.", "source_url": "https://www.dfa.arkansas.gov/wp-content/uploads/it1997_4.pdf", "source_pinpoint": "Regulation 1997-4, rules 1.26-51-202(a), 2.26-51-202(a) and 1.26-51-202(d) (PDF page 38)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "CA", "state": "California", "broad_personal_income_tax": "yes", "note": "Residents are taxed on all income from all sources and nonresidents only on California source income, including rents and royalties related to property located in California, and the Form 592 instructions list royalties among payments subject to withholding at 7%, or a reduced amount the FTB authorizes, once California source payments exceed $1,500 in a calendar year.", "source_url": "https://www.ftb.ca.gov/forms/2025/2025-540nr-ca-instructions.html", "source_pinpoint": "2025 Schedule CA (540NR) instructions, Column E California Amounts, introduction and Section B, Line 5", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "CO", "state": "Colorado", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Colorado tax on income derived from Colorado sources, the Department lists rents and royalties from real and tangible personal property located in Colorado as Colorado source income, and part-year residents are taxed on all income from their period of Colorado residency.", "source_url": "https://tax.colorado.gov/sites/tax/files/documents/ITT_Part-Year_Residents_&_Nonresidents_Feb_2024.pdf", "source_pinpoint": "Income Tax Topics: Part-Year Residents and Nonresidents (revised February 2024), introduction (page 1) and Colorado-Source Income table (page 3)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "CT", "state": "Connecticut", "broad_personal_income_tax": "yes", "note": "Nonresidents report rents and royalties from real property located in Connecticut as Connecticut source income whether or not the property is used in a business, and part-year residents report income from all sources earned while they were Connecticut residents.", "source_url": "https://portal.ct.gov/-/media/drs/forms/2025/income/2025-ct-1040-nrpy-instructions_1225.pdf", "source_pinpoint": "2025 Form CT-1040NR/PY instructions, Line 10 Rental Real Estate, Royalties, Partnerships, S Corporations, Trusts, Etc. (PDF page 15) and Schedule CT-SI guidance (PDF page 12)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "DE", "state": "Delaware", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Delaware tax on income attributable to the ownership of any interest in real or tangible personal property in Delaware, the 2025 PIT-NON instructions put rents and royalties from property located in Delaware in the Delaware source column, and part-year residents include all income from any source during Delaware residency.", "source_url": "https://delcode.delaware.gov/title30/c011/sc03/index.html", "source_pinpoint": "30 Del. C. s. 1121 and s. 1124(b)(2)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "DC", "state": "District of Columbia", "broad_personal_income_tax": "yes", "note": "DC imposes its income tax on the taxable income of every resident, and the Home Rule Act bars the DC Council from imposing any tax on any portion of the personal income of an individual who is not a DC resident.", "source_url": "https://code.dccouncil.gov/us/dc/council/code/sections/47-1806.03", "source_pinpoint": "D.C. Code s. 47-1806.03(a)(11)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "FL", "state": "Florida", "broad_personal_income_tax": "no", "note": "Florida does not impose a personal income tax, and its constitution bars a state tax on the income of natural persons who are residents or citizens beyond amounts creditable against a similar federal or state tax, so an individual's royalty income is not taxed by the state.", "source_url": "https://floridarevenue.com/Forms_library/current/brochure/gt800025.pdf", "source_pinpoint": "Page 2, Other Taxes and Fees", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "GA", "state": "Georgia", "broad_personal_income_tax": "yes", "note": "Full-year residents are taxed on all income regardless of source, nonresidents owe Georgia tax on income from Georgia sources, and the Department rule says a nonresident's gross income from rents includes all rents from real or personal property located in Georgia.", "source_url": "https://rules.sos.ga.gov/gac/560-7-8", "source_pinpoint": "Ga. Comp. R. and Regs. 560-7-8-.01(1)(b) and (1)(b)6, Rents", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "HI", "state": "Hawaii", "broad_personal_income_tax": "yes", "note": "Residents are taxed on income from all sources, while nonresidents are taxed on Hawaii source income only and report rents and royalties with situs in Hawaii, where income from real or tangible personal property is sourced to the place the property has its situs.", "source_url": "https://files.hawaii.gov/tax/forms/2025/n15ins.pdf", "source_pinpoint": "2025 Form N-15 instructions, Residency Status (PDF pages 4 and 5), Hawaii source rules (PDF page 12) and Line 17 Rents, Royalties, Partnerships, Estates or Trusts (PDF page 17)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "ID", "state": "Idaho", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Idaho tax on income attributable to the ownership of any interest in real or tangible personal property located in Idaho, and the 2025 instructions report rents and royalties in the Idaho column when received while a resident or related to Idaho business or property.", "source_url": "https://legislature.idaho.gov/statutesrules/idstat/Title63/T63CH30/SECT63-3026A/", "source_pinpoint": "Idaho Code s. 63-3026A(1) and (3)(a)(ii)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "IL", "state": "Illinois", "broad_personal_income_tax": "yes", "note": "Rents and royalties from real property are allocated to Illinois for nonresidents if the property is located in Illinois, and the tax is imposed on the privilege of earning or receiving income in Illinois or as an Illinois resident.", "source_url": "https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003500050K303", "source_pinpoint": "35 ILCS 5/303(a) and (c)(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "IN", "state": "Indiana", "broad_personal_income_tax": "yes", "note": "The 2025 IT-40PNR instructions count a nonresident's royalties as Indiana income only when they result from a trade or business conducted in Indiana while listing income from real or personal property located in Indiana as Indiana income, and residents report all income including income from outside Indiana.", "source_url": "https://forms.in.gov/Download.aspx?id=16921", "source_pinpoint": "2025 IT-40PNR booklet, Nonresidency and Income Taxable to Indiana (PDF page 8) and Line 12 Net Rent or Royalty Income or Loss (PDF page 14)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "IA", "state": "Iowa", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Iowa tax on net income from any property, trust, estate, or other source within Iowa, the Department rule says all income of nonresidents derived from sources within Iowa is subject to Iowa income tax, and residents are taxed on their entire taxable income.", "source_url": "https://www.legis.iowa.gov/docs/code/422.8.pdf", "source_pinpoint": "Iowa Code 2026 s. 422.8(2)(a)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "KS", "state": "Kansas", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Kansas tax on Kansas source income, which includes income from real or tangible personal property located in Kansas, and residents count all income earned while a Kansas resident.", "source_url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_032_0110.html", "source_pinpoint": "K.S.A. 79-32,110(a) and (b)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "KY", "state": "Kentucky", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Kentucky tax on income from tangible property located in Kentucky and must report income from property located in Kentucky, while residents are taxed on their entire net income.", "source_url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56339", "source_pinpoint": "KRS 141.020(1), (2)(f) and (4)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "LA", "state": "Louisiana", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Louisiana tax on income earned within or derived from Louisiana sources, which the 2025 IT-540B instructions say includes rents and royalties, and residents are taxed on income from whatever sources derived.", "source_url": "https://legis.la.gov/Legis/Law.aspx?d=101762", "source_pinpoint": "R.S. 47:295(A)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "ME", "state": "Maine", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Maine tax on income derived from or connected with Maine sources, which includes items attributable to the ownership or disposition of any interest in real or tangible personal property in Maine, and residents are taxed on their Maine taxable income.", "source_url": "https://legislature.maine.gov/statutes/36/title36sec5142.html", "source_pinpoint": "36 M.R.S. s. 5142(1) and (2)(A)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "MD", "state": "Maryland", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Maryland tax on income derived from real or tangible personal property located in Maryland, whether derived directly or from a fiduciary, because that income is excluded from the nonresident subtraction.", "source_url": "https://mgaleg.maryland.gov/2026RS/Statute_Web/gtg/10-210.pdf", "source_pinpoint": "Tax-General s. 10-210(a) and (b)(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "MA", "state": "Massachusetts", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Massachusetts tax on gross income derived from or effectively connected with the ownership of any interest in real or tangible personal property located in Massachusetts, and residents are taxed on their taxable income.", "source_url": "https://malegislature.gov/Laws/GeneralLaws/PartI/TitleIX/Chapter62/Section5A", "source_pinpoint": "G.L. c. 62, s. 5A(a)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "MI", "state": "Michigan", "broad_personal_income_tax": "yes", "note": "Under the Income Tax Act, net rents and royalties from real property located in Michigan are allocable to Michigan, nonresident taxable income is computed subject to these allocation rules, and a resident allocates all taxable income to Michigan except income attributable to another state under sections 111 to 115.", "source_url": "https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-206-111", "source_pinpoint": "MCL 206.111(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "MN", "state": "Minnesota", "broad_personal_income_tax": "yes", "note": "Nonresidents are taxed on income or gains from tangible property located in Minnesota that is not employed in their business and on rents and royalties from Minnesota sources, while resident income is not subject to allocation outside Minnesota.", "source_url": "https://www.revisor.mn.gov/statutes/cite/290.17", "source_pinpoint": "Minn. Stat. 290.17, subd. 1(a) and subd. 2(b)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "MS", "state": "Mississippi", "broad_personal_income_tax": "yes", "note": "Mississippi taxes the entire net income of residents, Department of Revenue rules require part-year residents to include income from sources within Mississippi received while a nonresident, and a multistate allocation rule says royalty income from mineral production must be allocated to the state where production occurred.", "source_url": "https://billstatus.ls.state.ms.us/documents/2025/pdf/HB/0001-0099/HB0001SG.pdf", "source_pinpoint": "House Bill 1 (2025 Regular Session), Section 1 amending s. 27-7-5(1)(a), and Section 2", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "MO", "state": "Missouri", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Missouri tax on income derived from Missouri sources, which includes items attributable to the ownership or disposition of any interest in real or tangible personal property in Missouri, and the MO-NRI worksheet lists rents and royalties as a line of Missouri source income.", "source_url": "https://revisor.mo.gov/main/OneSection.aspx?section=143.181", "source_pinpoint": "RSMo 143.181.1 and 143.181.2(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "MT", "state": "Montana", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Montana tax on Montana source income, which includes net royalties from real property to the extent the property is used in Montana, and, subject to statutory exceptions, remitters must withhold tax from royalty payments to royalty owners, including owners of nonworking interests in oil or gas production.", "source_url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0300/part_0210/section_0010/0150-0300-0210-0010.html", "source_pinpoint": "MCA 15-30-2101(21)(a)(ix) (2025)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "NE", "state": "Nebraska", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Nebraska tax on income derived from sources within Nebraska, which includes items attributable to the ownership or disposition of any interest in real or tangible personal property in Nebraska, and residents are taxed on their entire income.", "source_url": "https://www.nebraskalegislature.gov/laws/statutes.php?statute=77-2733", "source_pinpoint": "Neb. Rev. Stat. 77-2733(1) and (2)(a)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "NV", "state": "Nevada", "broad_personal_income_tax": "no", "note": "Nevada does not impose a state income tax on individuals, so an individual's royalty income is not taxed by the state.", "source_url": "https://tax.nv.gov/about-nevada-department-of-taxation/income-tax-in-nevada/", "source_pinpoint": "Income Tax in Nevada", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "NH", "state": "New Hampshire", "broad_personal_income_tax": "no", "note": "New Hampshire repealed its interest and dividends tax, which reached only residents' interest and dividend income, for taxable periods beginning after December 31, 2024, and no other New Hampshire tax on individual income was found, so an individual's royalty income is not taxed by the state.", "source_url": "https://www.revenue.nh.gov/sites/g/files/ehbemt736/files/documents/2025-001-technical-information-release-repeal.pdf", "source_pinpoint": "TIR 2025-001, Interest and Dividends Tax Repealed Effective January 1, 2025, and footnote 1 (Laws of 2023, ch. 79, ss. 86 to 88)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "NJ", "state": "New Jersey", "broad_personal_income_tax": "yes", "note": "Nonresidents report on Form NJ-1040NR the part of their net income from rents and royalties that is from New Jersey sources, and their tax is based on the percentage of their income that is from New Jersey sources.", "source_url": "https://www.nj.gov/treasury/taxation/pdf/current/1040nri.pdf", "source_pinpoint": "2025 Form NJ-1040NR instructions, Income columns A and B (PDF page 6) and Schedule NJ-BUS-1 Part II (PDF pages 16 and 17)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "NM", "state": "New Mexico", "broad_personal_income_tax": "yes", "note": "All taxpayers allocate to New Mexico income from royalties and working interests in oil and gas producing properties located in New Mexico, nonresidents with royalties from New Mexico sources must file if they also have a federal filing requirement, and remitters must withhold tax from oil and gas proceeds paid to nonresidents, subject to exceptions.", "source_url": "https://realfile.tax.newmexico.gov/2025pit-b-ins.pdf", "source_pinpoint": "2025 PIT-B instructions, Line 4 Rents and royalties (PDF pages 5 and 6)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "NY", "state": "New York", "broad_personal_income_tax": "yes", "note": "Nonresidents owe New York State tax on rents and royalties from real property located in New York State, whether or not the property is used in a business, and part-year residents also pay tax on all income received while resident.", "source_url": "https://www.tax.ny.gov/pdf/current_forms/it/it203i.pdf", "source_pinpoint": "Instructions for Form IT-203 (2025): How are you taxed as a nonresident or as a part-year resident; Nonresidents: New York source income; Line 11, Rent from real property (PDF pages 3, 12 and 13)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "NC", "state": "North Carolina", "broad_personal_income_tax": "yes", "note": "A nonresident's North Carolina taxable income is the share of income derived from North Carolina sources, including income attributable to the ownership of any interest in real or tangible personal property in North Carolina, while a resident's taxable income starts from full adjusted gross income.", "source_url": "https://www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_105/GS_105-153.4.html", "source_pinpoint": "G.S. 105-153.4(a) and (b)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "ND", "state": "North Dakota", "broad_personal_income_tax": "yes", "note": "North Dakota imposes its income tax on every resident and nonresident individual, and remitters must withhold 1.75%, the highest individual rate of 2.50% reduced by 0.75%, from the gross amount of oil or gas royalty payments made to nonresident royalty owners.", "source_url": "https://ndlegis.gov/cencode/t57c38.pdf", "source_pinpoint": "N.D.C.C. s. 57-38-30.3(1) and s. 57-38-59.4(1) and (2) (chapter PDF created December 31, 2025)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "OH", "state": "Ohio", "broad_personal_income_tax": "yes", "note": "Ohio allocates a nonresident's nonbusiness rents and royalties from real property to Ohio when the property is physically located in Ohio, allocates all nonbusiness income of residents to Ohio, and its 2025 instructions treat income from letting a company extract minerals from one's land as nonbusiness income when the owner is not in a related trade or business.", "source_url": "https://codes.ohio.gov/ohio-revised-code/section-5747.20", "source_pinpoint": "R.C. 5747.20(A) and (B)(3)(a), version effective March 23, 2022", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "OK", "state": "Oklahoma", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Oklahoma tax on net rents and royalties from real and tangible personal property located in Oklahoma, and remitters must withhold an amount equal to the highest Oklahoma marginal individual income tax rate from the gross oil and gas royalty payments made to royalty owners who are not Oklahoma residents.", "source_url": "https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.rtf", "source_pinpoint": "68 O.S. s. 2355(D) and (E), s. 2362(F)(1), s. 2385.26(A) and (B)(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "OR", "state": "Oregon", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Oregon tax on income from Oregon sources, which the Department of Revenue says includes rents and royalties for use of Oregon property, and full-year residents are taxed on income from all sources, including royalty income reported on federal Schedule E.", "source_url": "https://www.oregonlegislature.gov/bills_laws/ors/ors316.html", "source_pinpoint": "ORS 316.037(1)(a) and (3), ORS 316.127(1) and (2)(a)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "PA", "state": "Pennsylvania", "broad_personal_income_tax": "yes", "note": "Nonresidents owe Pennsylvania tax on net income from rents and royalties from property located in Pennsylvania, with royalties from the extraction of minerals allocable to Pennsylvania when the property is located there and the income is not derived from operating a business, residents are taxed on all classes of income regardless of source, and a lessee paying lease payments for Pennsylvania real estate to a nonresident lessor in the course of a trade or business, where lease payments include royalties, must withhold at the 3.07% rate, with withholding optional below $5,000 a year.", "source_url": "https://www.pa.gov/agencies/revenue/forms-and-publications/pa-personal-income-tax-guide/net-income-loss-from-rents,-royalties,-copyrights-and-patents.html", "source_pinpoint": "PA Personal Income Tax Guide, Net Income (Loss) from Rents, Royalties, Copyrights and Patents: Royalty Income; Allocation of Royalties from Extraction of Minerals; Nonresidents", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "RI", "state": "Rhode Island", "broad_personal_income_tax": "yes", "note": "Nonresidents include in Rhode Island income the rents and royalties from real property situated in Rhode Island, whether or not used in a business, and income from real property is fully included if the property is in Rhode Island and fully excluded if it is outside.", "source_url": "https://tax.ri.gov/sites/g/files/xkgbur541/files/2025-12/2025%201040NR%20Instructions%20122025.pdf", "source_pinpoint": "2025 Instructions for Filing RI-1040NR: Income of a Nonresident Subject to Tax (PDF page 1) and Line 5, Column A (PDF page 7)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "SC", "state": "South Carolina", "broad_personal_income_tax": "yes", "note": "Nonresidents are taxed on South Carolina income attributable to the ownership of any interest in real or tangible personal property located in South Carolina, and a person paying a nonresident individual rent or royalties of $1,200 or more a year for the use of property in South Carolina must withhold a percentage equal to the maximum individual tax rate.", "source_url": "https://www.scstatehouse.gov/code/t12c006.php", "source_pinpoint": "S.C. Code s. 12-6-510(B)(1) and s. 12-6-1720(1)(a)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "SD", "state": "South Dakota", "broad_personal_income_tax": "no", "note": "South Dakota does not have a personal income tax, so an individual's royalty income is not taxed by the state.", "source_url": "https://dor.sd.gov/media/avyep2sr/2026-7_sales-use-tax-guide.pdf", "source_pinpoint": "Tax Basics, page 3", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "TN", "state": "Tennessee", "broad_personal_income_tax": "no", "note": "Tennessee's Hall income tax, which applied only to interest from bonds and notes and dividends from stock, was repealed for tax periods beginning on or after January 1, 2021, so an individual's royalty income is not taxed by the state.", "source_url": "https://www.tn.gov/revenue/taxes/hall-income-tax.html", "source_pinpoint": "Hall Income Tax page", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "TX", "state": "Texas", "broad_personal_income_tax": "no", "note": "Texas levies no individual income tax, because Article 8, Section 24-a of the state constitution, added November 5, 2019, bars the legislature from taxing the net incomes of individuals, so an individual's royalty income is not taxed by the state.", "source_url": "https://statutes.capitol.texas.gov/Docs/CN/htm/CN.8.htm", "source_pinpoint": "Art. 8, Sec. 24-a and its history note (Added Nov. 5, 2019)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "UT", "state": "Utah", "broad_personal_income_tax": "yes", "note": "Utah taxes a nonresident on state taxable income derived from Utah sources, which includes income from the ownership in Utah of any interest in real or tangible personal property, including real property or property rights from which gross income from mining is derived, and residents are taxed on all income received while resident unless specifically exempted.", "source_url": "https://le.utah.gov/xcode/Title59/Chapter10/C59-10_1800010118000101.pdf", "source_pinpoint": "Utah Code s. 59-10-116(1) and s. 59-10-117(1)(a), version amended by Chapter 252, 2022 General Session (chapter PDF created August 23, 2024)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "partial" }, { "id": "VT", "state": "Vermont", "broad_personal_income_tax": "yes", "note": "The Vermont income of a nonresident includes rents and royalties derived from the ownership of property located in Vermont, while the Vermont income of a resident starts from the resident's full adjusted gross income.", "source_url": "https://legislature.vermont.gov/statutes/section/32/151/05823", "source_pinpoint": "32 V.S.A. s. 5823(a) and (b)(1)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "VA", "state": "Virginia", "broad_personal_income_tax": "yes", "note": "A nonresident is taxed on the share of income from Virginia sources, which include items attributable to the ownership of any interest in real or tangible personal property in Virginia.", "source_url": "https://law.lis.virginia.gov/vacode/title58.1/chapter3/section58.1-302/", "source_pinpoint": "Va. Code s. 58.1-302, definition of Income and deductions from Virginia sources, item 1 a", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "WA", "state": "Washington", "broad_personal_income_tax": "no", "note": "Washington has no individual income tax in 2026 and its capital gains excise applies only to sales or exchanges of long-term capital assets, but from January 1, 2028 a 9.9% tax applies to Washington taxable income, which for residents starts from federal adjusted gross income, excludes long-term capital gains, and allows a $1,000,000 standard deduction.", "source_url": "https://dor.wa.gov/taxes-rates/income-tax", "source_pinpoint": "Income tax page", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "WV", "state": "West Virginia", "broad_personal_income_tax": "yes", "note": "Nonresidents report as West Virginia source income any rents and royalties from real property located in West Virginia, whether or not the property is used in a business, and taxable income received from all sources while a resident is taxable.", "source_url": "https://tax.wv.gov/Documents/PIT/2025/it140.PersonalIncomeTaxFormsAndInstructions.2025.pdf", "source_pinpoint": "2025 IT-140 instructions: Who Must File (PDF page 19), Nonresident/Part-Year Resident and West Virginia Source Income (PDF page 20), Rent and Royalty Income (PDF page 33)", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "WI", "state": "Wisconsin", "broad_personal_income_tax": "yes", "note": "Income of nonresidents from rentals and royalties from real estate, or from operating any farm, mine or quarry, follows the situs of the property, so royalties from Wisconsin property are taxable to nonresidents, while all income of residents follows the residence of the individual.", "source_url": "https://docs.legis.wisconsin.gov/statutes/statutes/71/i/04", "source_pinpoint": "Wis. Stat. s. 71.04(1)(a)", "source_type": "official_statute", "accessed": "2026-10-01", "evidence": "primary" }, { "id": "WY", "state": "Wyoming", "broad_personal_income_tax": "no", "note": "Wyoming levies no personal state income tax, so an individual's royalty income is not taxed by the state.", "source_url": "https://wyomingbusiness.org/why-wyoming/business-resources/", "source_pinpoint": "Business Resources, tax list", "source_type": "official_agency", "accessed": "2026-10-01", "evidence": "primary" } ], "severance": [ { "abbr": "TX", "state": "Texas", "levy_name": "Oil Production Tax (Tax Code ch. 202); Gas Production Tax (Tax Code ch. 201), which also taxes condensate (s. 201.055) and other liquid hydrocarbons recovered from gas (s. 201.054); Oil Field Clean-Up Fee on taxable barrels of oil; Oil-Field Cleanup Regulatory Fee on Natural Gas", "oil_rate": "4.6% of market value, or 4.6 cents per barrel of 42 standard gallons, whichever results in the greater tax (s. 202.052(a)). Condensate is taxed at the oil rate (s. 201.055). The Comptroller also lists an Oil Field Clean-Up Fee of $0.00625 per taxable barrel for report periods September 2015 and later.", "gas_rate": "7.5% of market value of gas produced and saved (s. 201.052(a)); liquid hydrocarbons other than condensate are taxed at the same rate (s. 201.054). The Comptroller also lists an Oil-Field Cleanup Regulatory Fee on Natural Gas of $.000667 per 1,000 cubic feet of taxable gas.", "base": "Oil: market value, meaning the actual market value plus any bonus, premium or other thing of value paid for the oil (s. 202.053). Gas: value at the mouth of the well, computed as the producer's gross cash receipts minus its actual marketing costs (s. 201.101(a)).", "key_exemptions_or_reduced_rates": [ "Oil from a new or expanded enhanced recovery project is taxed at 2.3% instead of 4.6% (s. 202.052(b)), with an additional 50% reduction for qualifying projects that use captured anthropogenic carbon dioxide (s. 202.0545).", "Oil and gas from wells the Railroad Commission designates as two-year inactive wells qualify for a five-year severance tax exemption (s. 202.056).", "High-cost gas from wells spudded or completed after August 31, 1996 gets a reduced rate for up to 120 months or until the reduction equals 50% of drilling and completion costs (s. 201.057(c)).", "Low-producing oil leases (under 15 barrels per well per day) and gas wells (90 mcf per day or less) get credits of 25%, 50% or 100% of the tax as the certified three month average taxable price in 2005 dollars falls: 25% when over $25 but not over $30 per barrel or over $3 but not over $3.50 per mcf, and 100% at $22 per barrel or $2.50 per mcf or less (s. 202.058, s. 201.059).", "Oil and gas from certified restimulation wells is exempt for up to 36 months, ending earlier once exempted tax reaches the lesser of restimulation costs or $750,000 (s. 202.062, effective January 1, 2026).", "Oil and gas from reactivated orphaned wells qualify for a severance tax exemption for the certified operator (s. 202.060)." ], "ad_valorem_note": "Yes, separately. The Property Tax Code defines real property to include a mineral in place (s. 1.04), and s. 23.175 governs how appraisal offices value a real property interest in oil or gas in place from projected income. The state production taxes are classified as occupation taxes (s. 202.351, s. 201.401); no source read makes them a substitute for local property tax.", "royalty_owner_note": "Royalty owners bear the tax ratably, and producers or purchasers are authorized and required to withhold the proportionate tax from payments to them (s. 202.156, s. 201.205).", "effective_or_as_of": "s. 202.052 as amended effective January 1, 2006 and s. 201.052 as amended effective October 1, 2001, read in archive snapshots of November 18, 2025 and December 8, 2025; Comptroller rate pages as captured August 13, 2026.", "source": { "url": "https://statutes.capitol.texas.gov/Docs/TX/htm/TX.202.htm", "publisher": "Texas Legislature, Texas Constitution and Statutes", "type": "official_statute", "pinpoint": "Tax Code s. 202.052, 202.053, 202.156, 202.351", "accessed": "2026-10-01", "local_copy": "sources/sev-tx-tax-code-202.md", "via": "Internet Archive snapshot November 18, 2025" }, "additional_sources": [ { "url": "https://statutes.capitol.texas.gov/Docs/TX/htm/TX.201.htm", "publisher": "Texas Legislature, Texas Constitution and Statutes", "type": "official_statute", "pinpoint": "Tax Code s. 201.052 to 201.059, 201.101, 201.205", "accessed": "2026-10-01", "local_copy": "sources/sev-tx-tax-code-201.md", "via": "Internet Archive snapshot December 8, 2025" }, { "url": "https://comptroller.texas.gov/taxes/crude-oil/", "publisher": "Texas Comptroller of Public Accounts", "type": "official_agency", "pinpoint": "Crude Oil Production Tax, Rates", "accessed": "2026-10-01", "local_copy": "sources/sev-tx-cpa-crude-oil.md", "via": "Internet Archive snapshot August 13, 2026" }, { "url": "https://comptroller.texas.gov/taxes/natural-gas/", "publisher": "Texas Comptroller of Public Accounts", "type": "official_agency", "pinpoint": "Natural Gas Production Tax, Rates and Exemptions", "accessed": "2026-10-01", "local_copy": "sources/sev-tx-cpa-natural-gas.md", "via": "Internet Archive snapshot August 13, 2026" }, { "url": "https://statutes.capitol.texas.gov/Docs/TX/htm/TX.1.htm", "publisher": "Texas Legislature, Texas Constitution and Statutes", "type": "official_statute", "pinpoint": "Tax Code s. 1.04(2)", "accessed": "2026-10-01", "local_copy": "sources/sev-tx-tax-code-1.md", "via": "Internet Archive snapshot December 5, 2025" }, { "url": "https://statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm", "publisher": "Texas Legislature, Texas Constitution and Statutes", "type": "official_statute", "pinpoint": "Tax Code s. 23.175", "accessed": "2026-10-01", "local_copy": "sources/sev-tx-tax-code-23.md", "via": "Internet Archive snapshot December 3, 2025" } ], "confidence": "high", "open_questions": [ "Tax Code chapters 202, 201, 1 and 23 were read from Internet Archive snapshots dated November 18, 2025, December 8, 2025, December 5, 2025 and December 3, 2025 because statutes.capitol.texas.gov was not available when AMR checked, so any later amendment was not checked.", "Whether low value mineral interests are exempt from local property tax was not read." ], "evidence": [ { "file": "sources/sev-tx-tax-code-202.md", "quote": "TAX CODE CHAPTER 202. OIL PRODUCTION TAX", "supports": "levy_name" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "TAX CODE CHAPTER 201. GAS PRODUCTION TAX", "supports": "levy_name" }, { "file": "sources/sev-tx-cpa-crude-oil.md", "quote": "For report periods September 2015 and later, the taxable barrels are subject to the Oil Field Clean-Up Fee of $0.00625 (5/8 of a cent) per barrel", "supports": "levy_name, oil_rate" }, { "file": "sources/sev-tx-cpa-natural-gas.md", "quote": "Taxable gas produced and saved is subject to the Oil-Field Cleanup Regulatory Fee on Natural Gas of $.000667 (one fifteenth of a cent) per 1,000 cubic feet of gas.", "supports": "levy_name, gas_rate" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "at the rate of 4.6 percent of the market value of oil produced in this state or 4.6 cents for each barrel of 42 standard gallons", "supports": "oil_rate" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "whichever rate results in the greater amount of tax", "supports": "oil_rate" }, { "file": "sources/sev-tx-cpa-crude-oil.md", "quote": "Oil production tax: 4.6 percent (.046) of market value of oil", "supports": "oil_rate" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "The tax imposed by this section is at the same rate as the rate of the tax imposed on oil by Section 202.052 of this code.", "supports": "oil_rate, levy_name" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "The tax imposed by this chapter is at the rate of 7.5 percent of the market value of gas produced and saved in this state by the producer.", "supports": "gas_rate" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "The rate of the tax imposed by this section is the same as the rate of the tax imposed by Section 201.052 of this code.", "supports": "gas_rate, levy_name" }, { "file": "sources/sev-tx-cpa-natural-gas.md", "quote": "Gas: 7.5 percent (.075) of market value of gas.", "supports": "gas_rate" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "The market value of oil is the actual market value plus any bonus, premium, or other thing of value paid for the oil", "supports": "base" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "The market value of gas is its value at the mouth of the well from which it is produced.", "supports": "base" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "determined by ascertaining the producer's actual marketing costs and subtracting those costs from the producer's gross cash receipts from the sale of the gas", "supports": "base" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "the rate of the tax imposed by this chapter is 2.3 percent of the market value of the oil.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "is entitled to an additional 50 percent reduction in that tax rate if in the recovery of the oil the enhanced oil recovery project uses carbon dioxide", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Hydrocarbons produced from a well qualify for a five-year severance tax exemption if the commission designates the well as a two-year inactive well.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "High-cost gas produced from a well that is spudded or completed after August 31, 1996, is entitled to a reduction of the tax imposed by this chapter for the first 120 consecutive calendar months", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "or until the cumulative value of the tax reduction equals 50 percent of the drilling and completion costs incurred for the well, whichever occurs first", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "for the previous three-month period is more than $25 per barrel but not more than $30 per barrel.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "is entitled to a 100 percent credit on the tax otherwise due on oil produced from that lease during a month", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "a gas well whose production during a three-month period is no more than 90 mcf per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "for the previous three-month period is more than $3 per mcf but not more than $3.50 per mcf.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "for the previous three-month period is not more than $22 per barrel.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "for the previous three-month period is not more than $2.50 per mcf.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Each month, the comptroller shall certify the average taxable price of oil, adjusted to 2005 dollars, during the previous three months", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "a well classified as an oil well that is part of a lease whose production during a 90-day period is less than: (A) 15 barrels of oil per day of production; or", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Hydrocarbons produced from a qualifying well are exempt from the taxes imposed by Chapter 201 and this chapter until the earlier of:", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "the last day of the 36th consecutive month following the month in which the well first produces hydrocarbons after a restimulation treatment is completed", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-cpa-natural-gas.md", "quote": "Exemption no longer applies once the exempted taxes for the well reach the lesser of the well's restimulation costs or $750,000.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Added by Acts 2025, 89th Leg., R.S., Ch. 615 (H.B. 3159), Sec. 1, eff. January 1, 2026.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Hydrocarbons produced from the well identified in the certificate qualify for a severance tax exemption.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-tx-tax-code-1.md", "quote": "\"Real property\" means: (A) land; (B) an improvement; (C) a mine or quarry; (D) a mineral in place;", "supports": "ad_valorem_note" }, { "file": "sources/sev-tx-tax-code-23.md", "quote": "If a real property interest in oil or gas in place is appraised by a method that takes into account the future income from the sale of oil or gas to be produced from the interest", "supports": "ad_valorem_note" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "OCCUPATION TAX. The tax imposed by this chapter is an occupation tax.", "supports": "ad_valorem_note" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "The tax shall be borne ratably by all interested parties, including royalty interests.", "supports": "royalty_owner_note" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Producers or purchasers of oil, or both, are authorized and required to withhold from any payment due interested parties the proportionate amount of tax due.", "supports": "royalty_owner_note" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "Producers or purchasers of gas, or both, are authorized and required to withhold from any payment due interested parties the proportionate tax due and remit it to the comptroller.", "supports": "royalty_owner_note" }, { "file": "sources/sev-tx-tax-code-202.md", "quote": "Acts 2005, 79th Leg., Ch. 267 (H.B. 2161), Sec. 11, eff. January 1, 2006.", "supports": "effective_or_as_of" }, { "file": "sources/sev-tx-tax-code-201.md", "quote": "Amended by Acts 2001, 77th Leg., ch. 1263, Sec. 84(3), eff. Oct. 1, 2001.", "supports": "effective_or_as_of" } ] }, { "abbr": "OK", "state": "Oklahoma", "levy_name": "Gross production tax (68 O.S. s. 1001); petroleum excise tax, an additional excise tax on oil and on natural gas and casinghead gas (68 O.S. s. 1101 and 1102); Oklahoma Energy Resources Board fee and Sustaining Oklahoma's Energy Resources fee, both reported on OTC Form 341", "oil_rate": "Gross production tax 7% of gross value, or 5% for the first 36 months from the month of first production (68 O.S. s. 1001(B)). Petroleum excise tax .095 of 1% of gross value (68 O.S. s. 1101); 2026 SB 1280, effective July 1, 2026, keeps this rate through June 30, 2031, after which it becomes .085 of 1%. OTC Form 341 (created 2022-06) also lists an Oklahoma Energy Resources Board fee of taxable value times 0.001 and a Sustaining Oklahoma's Energy Resources fee of $0.0035 per barrel of taxable volume.", "gas_rate": "Gross production tax 7% of gross value, or 5% for the first 36 months from the month of first production (68 O.S. s. 1001(B)). Petroleum excise tax .095 of 1% of gross value (68 O.S. s. 1102), kept through June 30, 2031 by 2026 SB 1280. OTC Form 341 (created 2022-06) also lists the Oklahoma Energy Resources Board fee of taxable value times 0.001 and a Sustaining Oklahoma's Energy Resources fee of $0.00015 per mcf of taxable volume.", "base": "Gross value of the production (68 O.S. s. 1001(B)). OTC Form 341 describes gross value as the gross proceeds realized from the first sale, including premiums, without any deduction for costs. Producers may deduct qualifying natural gas marketing costs from gross value (68 O.S. s. 1001.4).", "key_exemptions_or_reduced_rates": [ "New wells: 5% instead of 7% for the first 36 months from the month of first production (s. 1001(B)(3)).", "Secondary and tertiary recovery projects approved or starting on or after July 1, 2022: production exempt for up to 5 years, paid as refunds capped at $15 million per fiscal year (s. 1001(D), (F)).", "Recovery projects on wells from the Corporation Commission orphaned well list: 50% reduction of the 5% rate for 36 months, with a $25,000 surety per well (s. 1001(D)(5)).", "Wells drilled but not completed as of July 1, 2021 and completed with recycled water on or after July 1, 2022: exemption for 24 months from first sales in proportion to recycled water used (s. 1001(E)); the OTC says 2026 HB 3986 removes the date requirement effective January 1, 2027.", "Economically at-risk leases (wells averaging 10 barrels of oil or 60 mcf of gas or less per day that run at a loss or at a profit below the gross production tax paid, or oil leases under $50 per barrel and gas leases under $3.50 per MMBtu on a monthly average): refund of 6/7 of a 7% tax or 4/5 of a 5% tax for the prior calendar year, capped at $10 million per year (s. 1001.3a).", "Producers may deduct natural gas marketing costs, such as compressing, dehydrating, sweetening and delivering the gas, from gross value (s. 1001.4)." ], "ad_valorem_note": "In lieu. Payment of the gross production tax is in full and in lieu of all state and local taxes on property rights in the minerals, on producing oil and gas leases, on machinery and equipment used in and around producing wells, and on the oil and gas during the tax year produced (68 O.S. s. 1001(K)). Other interests in the land, and oil in storage on the assessment date, are taxed as other property.", "royalty_owner_note": "The tax attaches to the royalty interest (68 O.S. s. 1001(C)), and on oil and gas sold at the time of production the purchaser pays it and deducts it in settlement with the producer or royalty owner (68 O.S. s. 1009(D)).", "effective_or_as_of": "Gross production tax rates per 68 O.S. s. 1001 as last amended by Laws 2025, c. 51, effective July 1, 2025; petroleum excise rate per 2026 SB 1280, effective July 1, 2026, approved by the Governor May 1, 2026.", "source": { "url": "https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os68.rtf", "publisher": "Oklahoma Legislature", "type": "official_statute", "pinpoint": "68 O.S. s. 1001(B), (C), (D), (E), (F), (K); s. 1001.3a; s. 1001.4; s. 1009(D); s. 1101; s. 1102", "accessed": "2026-10-01", "local_copy": "sources/sev-ok-title-68-os68.md" }, "additional_sources": [ { "url": "https://www.oklegislature.gov/cf_pdf/2025-26%20ENR/SB/SB1280%20ENR.PDF", "publisher": "Oklahoma Legislature", "type": "official_statute", "pinpoint": "Enrolled SB 1280, Sections 1, 2 and 4", "accessed": "2026-10-01", "local_copy": "sources/sev-ok-sb1280-enrolled-2026.md" }, { "url": "https://www.oklegislature.gov/BillInfo.aspx?Bill=SB1280&Session=2600", "publisher": "Oklahoma Legislature", "type": "official_statute", "pinpoint": "SB 1280 bill history, Approved by Governor 05/01/2026", "accessed": "2026-10-01", "local_copy": "sources/sev-ok-sb1280-bill-history.md" }, { "url": "https://oklahoma.gov/content/dam/ok/en/tax/documents/resources/publications/legislation/2026LegislativeUpdate.pdf", "publisher": "Oklahoma Tax Commission", "type": "official_agency", "pinpoint": "2026 Tax Legislation Summary, pages 5 to 6, SB 1280 and HB 3986", "accessed": "2026-10-01", "local_copy": "sources/sev-ok-otc-2026-legislation-summary.md" }, { "url": "https://www.oklahoma.gov/content/dam/ok/en/tax/documents/forms/businesses/gross-production/341.pdf", "publisher": "Oklahoma Tax Commission", "type": "official_agency", "pinpoint": "Form 341 instructions, items 10, 11 and 24 to 28", "accessed": "2026-10-01", "local_copy": "sources/sev-ok-otc-form-341.md" } ], "confidence": "high", "open_questions": [ "The compiled Title 68 file on oklegislature.gov was last modified December 31, 2025, so it does not show 2026 session changes; the 2026 changes found (SB 1280, HB 3986, SB 227) come from enrolled SB 1280 and the OTC 2026 summary, and the enrolled texts of HB 3986 and SB 227 were not read.", "68 O.S. s. 1001(B)(4) would cut the first 36 month rate to 2% only if State Question No. 795 is approved; whether that ever occurred was not read.", "The OERB and SOER fee amounts come only from OTC Form 341, created 2022-06; their statutes and any later change were not read." ], "evidence": [ { "file": "sources/sev-ok-title-68-os68.md", "quote": "§68-1001. Gross production tax on asphalt, ores, oil and gas, and royalty interests - Exemptions.", "supports": "levy_name" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "§68-1101. Excise tax on oil - Additional tax.", "supports": "levy_name" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "26. Enter the total Petroleum Excise Tax for this period (Multiplying factor 0.00095).", "supports": "levy_name, oil_rate, gas_rate" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "27. Enter the total Oklahoma Energy Resources Board Fee paid for (Taxable Value multiplied by 0.001).", "supports": "levy_name, oil_rate, gas_rate" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "28. Enter the total Sustaining Oklahoma's Energy Resources Fee paid. For Oil (Taxable Volume multiplied by $0.0035). For Natural Gas (Taxable Volume multiplied by $0.00015).", "supports": "levy_name, oil_rate, gas_rate" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "Gross Volume (Gas to the nearest MCF at 14.65 pressure base; Oil to the nearest hundredth barrel).", "supports": "gas_rate, oil_rate" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "Form 341 Created 6-2022 Oklahoma Tax Commission", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Upon the production of oil a tax equal to seven percent (7%) of the gross value of the production of oil based on a per barrel measurement", "supports": "oil_rate" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Upon the production of gas a tax equal to seven percent (7%) of the gross value of the production of gas;", "supports": "gas_rate" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "shall be taxed at a rate of five percent (5%) commencing with the month of first production for a period of thirty-six (36) months.", "supports": "oil_rate, gas_rate, key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "24. Tax Rate: 5% for the first thirty-six months of production from a new well. 7% for all other production.", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-ok-sb1280-enrolled-2026.md", "quote": "Section 1101. A. Prior to July 1, 2026 2031, and as provided in Section 1103.1 of this title, there is hereby levied, in addition to the gross production tax", "supports": "oil_rate" }, { "file": "sources/sev-ok-sb1280-enrolled-2026.md", "quote": "an excise tax equal to ninety-five one thousandths of one percent (.095 of 1%) of the gross value on each barrel of petroleum oil produced in this state", "supports": "oil_rate" }, { "file": "sources/sev-ok-sb1280-enrolled-2026.md", "quote": "five one thousandths of one percent (.085 of 1%) of the gross value on each barrel of petroleum oil", "supports": "oil_rate" }, { "file": "sources/sev-ok-sb1280-enrolled-2026.md", "quote": "Beginning on July 1, 2026 2031, there is hereby levied, in addition to the gross production tax", "supports": "oil_rate" }, { "file": "sources/sev-ok-sb1280-enrolled-2026.md", "quote": "an excise tax equal to ninety-five one thousandths of one percent (.095 of 1%) of the gross value of all natural gas and/or casinghead gas produced in this state", "supports": "gas_rate" }, { "file": "sources/sev-ok-otc-2026-legislation-summary.md", "quote": "SB 1280 amends 68 O.S. §§ 1101, 1102, and 1103 by extending the current oil and gas petroleum excise tax rate, apportionment structure and termination dates from July 1, 2026 to July 1, 2031.", "supports": "oil_rate, gas_rate, effective_or_as_of" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "The gross proceeds realized from the first sale of such production, including the actual cash value and all premiums", "supports": "base" }, { "file": "sources/sev-ok-otc-form-341.md", "quote": "without any deduction for costs whatsoever", "supports": "base" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Producers of natural gas and casinghead gas who incur marketing costs of the gas produced may deduct such costs from the gross value when computing the gross value subject to the taxes levied", "supports": "base, key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Marketing costs are nonproduction costs incurred by the producer to enable the transport of gas from the well to the market, including:", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "for secondary and tertiary recovery projects approved or having an initial project start date on or after July 1, 2022, all production which results from such secondary and tertiary recovery projects shall be exempt from the gross production tax", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "for a period not to exceed five (5) years from the initial project start date", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Fifteen Million Dollars ($15,000,000.00) pursuant to the exemption provided in subsection D of this section", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "any production which results from a recovery project from a well on the Corporation Commission's orphaned well list shall receive a fifty-percent reduction from the gross production tax levied pursuant to paragraph 3 of subsection B of this section", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "from the project beginning date for a period of thirty-six (36) months", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "in the sum of Twenty-five Thousand Dollars ($25,000.00), per well transferred from the Corporation Commission's orphaned well list", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "from wells drilled but not completed as of July 1, 2021, which are completed with the use of recycled water on or after July 1, 2022, shall earn an exemption from the gross production tax", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "levied from the date of first sales for a period of twenty-four (24) months", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "The exemption provided in this subsection shall be proportional to the percentage of the total amount of water used to complete the well that is recycled water.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-otc-2026-legislation-summary.md", "quote": "HB 3986 amends 68 O.S. § 1001 to remove the date-based qualification requirement for the recycled water gross production tax exemption", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-otc-2026-legislation-summary.md", "quote": "HB 3986 Effective January 1, 2027", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "with one or more producing wells with an average production volume per well of ten (10) barrels of oil or sixty (60) MCF or less of natural gas per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "any oil lease operating while the gross value of the production of oil is less than Fifty Dollars ($50.00), on an average monthly basis", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "gas lease operating while the gross value of the production of gas is less than Three Dollars and fifty cents ($3.50), on an average monthly basis", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "operated at a net loss or at a net profit which is less than the total gross production tax remitted for such lease during the previous calendar year", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "If the gross production tax rate levied pursuant to subsection B of Section 1001 of this title was seven percent (7%), then the exemption shall equal six-sevenths (6/7) of the gross production tax levied", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "was five percent (5%), then the exemption shall equal four-fifths (4/5) of the gross production tax levied.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "the total amount of refunds authorized in this section for each calendar year shall not exceed Ten Million Dollars ($10,000,000.00) for all products combined", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "shall be in full, and in lieu of all taxes by the state, counties, cities, towns, school districts and other municipalities upon any property rights attached to or inherent in the right to the minerals", "supports": "ad_valorem_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "upon producing leases for the mining of asphalt and ores bearing lead, zinc, jack or copper, or for oil, or for gas", "supports": "ad_valorem_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "upon the machinery, appliances and equipment used in and around any well producing oil, or gas", "supports": "ad_valorem_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "The payment of gross production tax shall also be in lieu of all taxes upon the oil, gas, asphalt or ores bearing minerals hereinbefore mentioned during the tax year in which the same is produced", "supports": "ad_valorem_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Any interest in the land, other than that herein enumerated, and oil in storage", "supports": "ad_valorem_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "The taxes hereby levied shall also attach to, and are levied on, what is known as the royalty interest, and the amount of such tax shall be a lien on such interest.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "the gross production tax shall be paid by the purchaser of such products, and such purchaser shall, and is hereby authorized to deduct in making settlements with the producer and/or royalty owner", "supports": "royalty_owner_note" }, { "file": "sources/sev-ok-title-68-os68.md", "quote": "Laws 2025, c. 51, § 1, eff. July 1, 2025.", "supports": "effective_or_as_of" }, { "file": "sources/sev-ok-sb1280-enrolled-2026.md", "quote": "SECTION 4. This act shall become effective July 1, 2026.", "supports": "effective_or_as_of" }, { "file": "sources/sev-ok-sb1280-bill-history.md", "quote": "Sent to Governor 1046 04/29/2026 S Approved by Governor 05/01/2026", "supports": "effective_or_as_of" } ] }, { "abbr": "NM", "state": "New Mexico", "levy_name": "Oil and Gas Severance Tax (NMSA 1978 s. 7-29-4); Oil and Gas Conservation Tax (s. 7-30-4); Oil and Gas Emergency School Tax, a privilege tax (s. 7-31-4); Oil and Gas Ad Valorem Production Tax (s. 7-32-4); Oil and Gas Production Equipment Ad Valorem Tax (s. 7-34-4)", "oil_rate": "Severance tax 3.75% of taxable value (s. 7-29-4(A)(2)); emergency school tax 3.15% (s. 7-31-4(A)(1)); conservation tax 0.19%, raised to a total of 0.24% on oil sold in a quarter that follows a quarter in which the average West Texas Intermediate price exceeded $70 per barrel (s. 7-30-4). The TRD rate table for April 1, 2026 through August 31, 2026 applies 0.24% to kind O rows. Plus the ad valorem production tax at county and district rates, for example 1.0423% in the table's AD /2 column for Chaves County district 01, a total rate of 8.1823% for kind O.", "gas_rate": "Severance tax 3.75% of taxable value (s. 7-29-4(A)(1)); emergency school tax 4% (s. 7-31-4(A)(3)); conservation tax 0.19% (s. 7-30-4(A)); plus the ad valorem production tax at county and district rates, for example 1.0423% for Chaves County district 01, a total rate of 8.9823% for kind G in the TRD rate table for April 1, 2026 through August 31, 2026.", "base": "Taxable value: the value, meaning the actual price received for products at the production unit, less royalties paid or due the United States, New Mexico or an Indian tribe, pueblo or Indian, and less the reasonable expense of trucking to the first place of market (s. 7-29-2(D), s. 7-29-4.1). For the ad valorem production tax, taxable value is 150% of that net value and assessed value applies the uniform assessment ratio (s. 7-32-5).", "key_exemptions_or_reduced_rates": [ "Stripper well property oil: severance tax 1.875% if the prior calendar year average taxable value of oil was $15 per barrel or less, or 2.8125% if over $15 but not over $18; emergency school tax 1.58% or 2.36% at the same levels (s. 7-29-4(A)(8), (9); s. 7-31-4(A)(4), (5)).", "Stripper well property gas: severance tax 1.875% if the prior calendar year average taxable value of gas was $1.15 per mcf or less, or 2.8125% if over $1.15 but not over $1.35; emergency school tax 2% or 3% at the same levels (s. 7-29-4(A)(6), (7); s. 7-31-4(A)(6), (7)).", "Oil from a qualified enhanced recovery project: severance tax 1.875% when the annual average West Texas Intermediate price for the 12 months ending May 31 before the fiscal year was under $28 per barrel (s. 7-29-4(A)(3)).", "Production from a certified well workover project: severance tax 2.45% when that average price was under $24 per barrel (s. 7-29-4(A)(4), (5)).", "Production restoration projects: no severance tax for the first ten years of restored production when that average price was under $24 per barrel (s. 7-29-4(B))." ], "ad_valorem_note": "Yes, through state collected ad valorem taxes on production and equipment. The oil and gas ad valorem production tax is levied on the assessed value of products at the rate certified by the Department of Finance and Administration (s. 7-32-4). It and the oil and gas production equipment ad valorem tax are the full and exclusive measure of ad valorem tax on all interests in the production unit, and any other ad valorem tax on the production unit or its products is void (s. 7-32-5(B), s. 7-34-5).", "royalty_owner_note": "Every interest owner is liable for each tax to the extent of its interest, and an operator or purchaser paying an interest owner its share must withhold the owner's severance tax from the payment (s. 7-29-4(C), s. 7-29-6).", "effective_or_as_of": "Statutory rates as compiled in the NMOneSource NMSA chapter 7 file, whose annotations note 2025 amendments effective July 1, 2025; TRD rate table effective with the April 1, 2026 period, through August 31, 2026.", "source": { "url": "https://nmonesource.com/nmos/nmsa/en/4340/1/document.do", "publisher": "New Mexico Compilation Commission, NMOneSource", "type": "official_statute", "pinpoint": "NMSA 1978 s. 7-29-2, 7-29-4, 7-29-4.1, 7-29-6, 7-30-4, 7-31-4, 7-32-4, 7-32-5, 7-34-4, 7-34-5", "accessed": "2026-10-01", "local_copy": "sources/sev-nm-nmsa-chapter-7.md" }, "additional_sources": [ { "url": "https://www.tax.newmexico.gov/businesses/wp-content/uploads/sites/4/2026/04/2025-2026-OG-Ad-ValoremTRT-Effective-04-01-2026-08-31-2026-Revised.xlsx", "publisher": "New Mexico Taxation and Revenue Department", "type": "official_agency", "pinpoint": "Rate table for 04/01/2026 through 08/31/2026, header and Chaves County rows", "accessed": "2026-10-01", "local_copy": "sources/sev-nm-trd-oil-gas-tax-rates-2026-04.md" }, { "url": "https://www.tax.newmexico.gov/businesses/2020/10/22/oil-gas-production-taxes/", "publisher": "New Mexico Taxation and Revenue Department", "type": "official_agency", "pinpoint": "Oil and Gas Production Taxes page", "accessed": "2026-10-01", "local_copy": "sources/sev-nm-trd-oil-gas-production-taxes.md" } ], "confidence": "high", "open_questions": [ "The TRD rate table read covers April 1, 2026 through August 31, 2026; no table for periods from September 1, 2026 was posted on the filing page when read, so the current ad valorem production rates and the oil conservation rate for the quarter that includes October 1, 2026 were not confirmed.", "The TRD rate table does not define its product kinds O, H, G and C; this record reads O as oil and G as natural gas only because their school tax rates match the statutory oil and gas rates.", "Whether any price triggered reduced rate (stripper, enhanced recovery, workover, restoration) applies in fiscal year 2026-27 was not read from a TRD notice." ], "evidence": [ { "file": "sources/sev-nm-trd-oil-gas-production-taxes.md", "quote": "There are five taxes that are imposed based on the taxable value of oil, natural gas, liquid hydrocarbons, carbon dioxide, helium and other non-hydrocarbon gases", "supports": "levy_name" }, { "file": "sources/sev-nm-trd-oil-gas-production-taxes.md", "quote": "Oil and Gas Production Equipment Ad Valorem Tax This is an ad valorem tax on equipment used in production of oil, natural gas, carbon dioxide and non-hydrocarbon gas.", "supports": "levy_name" }, { "file": "sources/sev-nm-trd-oil-gas-production-taxes.md", "quote": "Oil and Gas Emergency School Tax This is a privilege tax on the business of every person severing oil and other liquid hydrocarbons", "supports": "levy_name" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "The tax imposed by this section may be referred to as the \"oil and gas severance tax\".", "supports": "levy_name" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on natural gas severed and sold, except as provided in Paragraphs (4), (6) and (7) of this subsection, three and three-fourths percent of the taxable value", "supports": "gas_rate" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on oil and on other liquid hydrocarbons removed from natural gas at or near the wellhead, except as provided in Paragraphs (3), (5), (8) and (9) of this subsection, three and three-fourths percent of taxable value", "supports": "oil_rate" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on oil and on oil and other liquid hydrocarbons removed from natural gas at or near the wellhead, except as provided in Paragraphs (4) and (5) of this subsection, three and fifteen-hundredths percent of the taxable value", "supports": "oil_rate" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on natural gas, except as provided in Paragraphs (6) and (7) of this subsection, four percent of the taxable value determined pursuant to Section 7-31-5 NMSA 1978", "supports": "gas_rate" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "The measure and rate of the tax shall be nineteen-hundredths percent of the taxable value of sold products.", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "When the average price of west Texas intermediate crude in the previous quarter exceeds seventy dollars ($70.00) per barrel, an additional tax", "supports": "oil_rate" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "The measure and rate of the total tax on oil shall be twenty-four hundredths percent of the taxable value of the sold product.", "supports": "oil_rate" }, { "file": "sources/sev-nm-trd-oil-gas-tax-rates-2026-04.md", "quote": "COUNTY | MUNI | DIST | SFX | FROM | TO | KIND | SEV | SCHOOL | CONS | AD /2 | Total Rate | AD VAL", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-nm-trd-oil-gas-tax-rates-2026-04.md", "quote": "CHAVES | | 01 | 0510 | 46113 | 46265 | O | 3.7499999999999999E-2 | 3.15E-2 | 2.3999999999999998E-3 | 1.0423E-2 | 8.1823000000000007E-2 | 2.0846E-2", "supports": "oil_rate" }, { "file": "sources/sev-nm-trd-oil-gas-tax-rates-2026-04.md", "quote": "CHAVES | | 01 | 0510 | 45901 | 46265 | G | 3.7499999999999999E-2 | 0.04 | 1.9E-3 | 1.0423E-2 | 8.9823E-2 | 2.0846E-2", "supports": "gas_rate" }, { "file": "sources/sev-nm-trd-oil-gas-tax-rates-2026-04.md", "quote": "New Mexico Oil and Gas Production tax rates for 04/01/2026 through 08/31/2026 by county and appropriate suffix - Effective with the 04/01/2026 period.", "supports": "oil_rate, gas_rate, effective_or_as_of" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "\"value\" means the actual price received for products at the production unit", "supports": "base" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "there shall be deducted from the value of products: A. royalties paid or due the United States or the state of New Mexico;", "supports": "base" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "the reasonable expense of trucking any product from the production unit to the first place of market.", "supports": "base" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "The taxable value of products is an amount equal to one hundred fifty percent of the value of products after deducting:", "supports": "base" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "The assessed value of products shall be determined by applying the uniform assessment ratio to the taxable value of products.", "supports": "base" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "from a stripper well property, one and seven-eighths percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "average annual taxable value of oil was equal to or less than fifteen dollars ($15.00) per barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "from a stripper well property, two and thirteen-sixteenths percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "barrel but not more than eighteen dollars ($18.00) per barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "from a stripper well property, one and fifty-eight hundredths percent", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "from a stripper well property, two and thirty-six hundredths percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on the natural gas from a stripper well property, one and seven-eighths percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on the natural gas from a stripper well property, two and thirteen- sixteenths percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "average annual taxable value of natural gas was equal to or less than one dollar fifteen cents ($1.15) per thousand cubic feet", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "but not more than one dollar thirty-five cents ($1.35) per thousand cubic feet", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on the natural gas removed from a stripper well property, two percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "on the natural gas removed from a stripper well property, three percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "near the wellhead produced from a qualified enhanced recovery project, one and seven- eighths percent of the taxable value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "was less than twenty-eight dollars ($28.00) per barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "two and forty-five hundredths percent of the taxable value determined pursuant to Section 7-29-4.1 NMSA 1978, provided that the annual average price of west Texas intermediate crude oil", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "was less than twenty-four dollars ($24.00) per barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "natural gas severed and sold from a production restoration project during the first ten years of production following the restoration of production", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "an ad valorem tax on the assessed value of products which are severed and sold to a purchaser from each production unit at the rate certified to the department by the department of finance and administration", "supports": "ad_valorem_note" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "shall be the full and exclusive measure of ad valorem tax liability on the interests of all persons, including the operator and interest owners, in the production unit.", "supports": "ad_valorem_note" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "Any other ad valorem tax on the production unit or on products severed therefrom is void.", "supports": "ad_valorem_note" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "Every interest owner shall be liable for the tax to the extent of the interest owner's interest in such products.", "supports": "royalty_owner_note" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "Any operator making a monetary payment to an interest owner for the interest owner's portion of the value of products from a production unit shall withhold from such payment the amount of tax due from the interest owner.", "supports": "royalty_owner_note" }, { "file": "sources/sev-nm-nmsa-chapter-7.md", "quote": "The 2025 amendment, effective July 1, 2025, revised language regarding the application of the privilege tax;", "supports": "effective_or_as_of" } ] }, { "abbr": "ND", "state": "North Dakota", "levy_name": "Oil and gas gross production tax (N.D.C.C. ch. 57-51); oil extraction tax (N.D.C.C. ch. 57-51.1)", "oil_rate": "Gross production tax 5% of gross value at the well (s. 57-51-02) plus oil extraction tax 5% of gross value at the well (s. 57-51.1-02(1)). For wells within reservation boundaries, on trust properties or straddle wells on reservation trust land, the extraction tax rises to 6% after the average crude price exceeds the indexed trigger price (set at $90 in the statute) for three consecutive months, unless the tribe opts out (s. 57-51.1-02(2), (3)).", "gas_rate": "Flat rate per mcf of taxable production, reset each July 1: $.0655 per mcf for July 1, 2026 through June 30, 2027, computed as $.04 times a gas base rate adjustment of 1.6374 (Tax Commissioner notice dated June 1, 2026; s. 57-51-02.2). The prior year rate was $.0555 per mcf.", "base": "Oil: gross value at the well, which is the price under an arm's length contract between producer and purchaser less transportation costs from the point of production to the point of sale, with fallback methods when there is no such contract (s. 57-51-02.3). Gas: taxable production in mcf times the gas tax rate (s. 57-51-02.2).", "key_exemptions_or_reduced_rates": [ "Oil from a stripper well property or individual stripper well is exempt from the oil extraction tax (s. 57-51.1-03(2)); stripper limits run from 10 barrels per day for shallow wells up to 35 barrels per day for deep Bakken or Three Forks wells (s. 57-51.1-01(10), (11)).", "Oil extraction tax is reduced to 2% on the first 300,000 barrels produced in the first 36 months from wells drilled and completed outside the Bakken and Three Forks formations (s. 57-51.1-03(4)).", "Restimulation wells certified after August 1, 2023 pay 2% oil extraction tax on the first 75,000 barrels or for 18 months, whichever comes first (s. 57-51.1-03(5)).", "The first 250,000 barrels in the first 36 months from a certified development incentive well drilled and completed before July 1, 2028 are exempt from the oil extraction tax (s. 57-51.1-03(6)).", "Incremental production from certified secondary recovery projects is exempt from oil extraction tax for 5 years and from tertiary projects for 10 years, with other periods for some carbon dioxide projects (s. 57-51.1-03(3)).", "Gas: shallow gas is exempt for its first 24 months (s. 57-51-02.4), and gas collected at the well site under a system to avoid flaring is exempt for two years and thirty days (s. 57-51-02.6)." ], "ad_valorem_note": "In lieu. Payment of the gross production tax is in lieu of all ad valorem taxes on property rights in producing oil or gas, producing leases, equipment used at the producing well, and oil and gas produced on which the tax was paid; other interests in the land are taxed as other property (s. 57-51-03). The Tax Commissioner states the gross production tax is imposed instead of property taxes on oil and gas producing properties.", "royalty_owner_note": "Both taxes attach to the whole production including the royalty interest, and the purchaser pays the tax and deducts it in settlement with the producer or royalty owner (s. 57-51-02, s. 57-51-05(2), s. 57-51.1-02(1), s. 57-51.1-05).", "effective_or_as_of": "Gas rate effective July 1, 2026 through June 30, 2027 per notice dated June 1, 2026; oil rates per N.D.C.C. s. 57-51-02 and 57-51.1-02 as published on ndlegis.gov when read October 1, 2026.", "source": { "url": "https://www.ndlegis.gov/cencode/t57c51.pdf", "publisher": "North Dakota Legislative Branch", "type": "official_statute", "pinpoint": "N.D.C.C. s. 57-51-02, 57-51-02.2, 57-51-02.3, 57-51-03, 57-51-05", "accessed": "2026-10-01", "local_copy": "sources/sev-nd-ndcc-57-51.md" }, "additional_sources": [ { "url": "https://www.ndlegis.gov/cencode/t57c51-1.pdf", "publisher": "North Dakota Legislative Branch", "type": "official_statute", "pinpoint": "N.D.C.C. s. 57-51.1-01, 57-51.1-02, 57-51.1-03, 57-51.1-05", "accessed": "2026-10-01", "local_copy": "sources/sev-nd-ndcc-57-51-1.md" }, { "url": "https://www.tax.nd.gov/sites/www/files/documents/newsletters/oil-gas/gas-tax-rate-notice.pdf", "publisher": "North Dakota Office of State Tax Commissioner", "type": "official_agency", "pinpoint": "Gas Tax Rate Notice for Fiscal Year 2027, dated June 1, 2026", "accessed": "2026-10-01", "local_copy": "sources/sev-nd-gas-tax-rate-notice-fy2027.md" }, { "url": "https://www.tax.nd.gov/excise-special-and-other-taxes/oil-and-gas-severance-tax", "publisher": "North Dakota Office of State Tax Commissioner", "type": "official_agency", "pinpoint": "Oil and Gas Severance Tax page, Tax Rate section", "accessed": "2026-10-01", "local_copy": "sources/sev-nd-tax-oil-gas-severance-tax.md" }, { "url": "https://www.tax.nd.gov/gas-tax-rate-table", "publisher": "North Dakota Office of State Tax Commissioner", "type": "official_agency", "pinpoint": "Gas Tax Rate Table, rows 7/2025 and 7/2026", "accessed": "2026-10-01", "local_copy": "sources/sev-nd-gas-tax-rate-table.md" }, { "url": "https://www.tax.nd.gov/oil-and-gas-tax-history", "publisher": "North Dakota Office of State Tax Commissioner", "type": "official_agency", "pinpoint": "Oil and Gas Tax History, 2025 and 2023 sessions", "accessed": "2026-10-01", "local_copy": "sources/sev-nd-oil-gas-tax-history.md" } ], "confidence": "high", "open_questions": [ "The indexed oil trigger price for calendar year 2026, which matters only for reservation, trust land and straddle wells, was not read.", "Which tribes, if any, have opted out of the 6% trigger rate or opted into the reduced rates was not read." ], "evidence": [ { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "CHAPTER 57-51 OIL AND GAS GROSS PRODUCTION TAX", "supports": "levy_name" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "CHAPTER 57-51.1 OIL EXTRACTION TAX", "supports": "levy_name" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "A tax of five percent of the gross value at the well is levied upon all oil produced within North Dakota", "supports": "oil_rate" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "The rate of tax is five percent of the gross value at the well of the oil extracted.", "supports": "oil_rate" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "for a well located within the exterior boundaries of a reservation", "supports": "oil_rate" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "if the average price of a barrel of crude oil exceeds the trigger price of ninety dollars for each month in any consecutive three-month period, then the rate of tax on oil extracted from all taxable wells is six percent", "supports": "oil_rate" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "A tribe may make an irrevocable election to opt-out of the increased rate of tax provided in subsection 2", "supports": "oil_rate" }, { "file": "sources/sev-nd-tax-oil-gas-severance-tax.md", "quote": "A 5% rate is applied to the gross value at the well of oil produced.", "supports": "oil_rate" }, { "file": "sources/sev-nd-gas-tax-rate-notice-fy2027.md", "quote": "the gas tax rate for the fiscal year beginning July 1, 2026, through June 30, 2027, is $.0655 per mcf.", "supports": "gas_rate, effective_or_as_of" }, { "file": "sources/sev-nd-gas-tax-rate-notice-fy2027.md", "quote": "The gas tax rate of $.0655 was computed by multiplying $.04 times the gas base rate adjustment of 1.6374", "supports": "gas_rate" }, { "file": "sources/sev-nd-gas-tax-rate-notice-fy2027.md", "quote": "SUBJECT: Notification of Gas Tax Rate for Fiscal Year 2027 Date: June 1, 2026", "supports": "effective_or_as_of" }, { "file": "sources/sev-nd-gas-tax-rate-table.md", "quote": "$.0555 Per MCF 7/2025 - 6/2026 $.0655 Per MCF 7/2026 - 6/2027", "supports": "gas_rate" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "The tax on gas must be calculated by taking the taxable production in mcf times the gas tax rate.", "supports": "gas_rate, base" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "The gross value at the well for oil is the price paid for the oil under an arm's-length contract between the producer and the purchaser less, when applicable, transportation costs", "supports": "base" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "The activity of extracting from the earth any oil from a stripper well property or individual stripper well.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "whose average daily production of oil during any preceding consecutive twelve-month period, excluding condensate recovered in nonassociated production, per well did not exceed ten barrels per day for wells of a depth of six thousand feet", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "and thirty-five barrels per day for wells of a depth of more than ten thousand feet", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "The first three hundred thousand barrels of oil produced during the first thirty-six months after completion, from a well drilled and completed outside the Bakken and Three Forks formations is subject to a reduced tax rate of two percent", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "The production from a restimulation well that has been certified as a qualified well by the industrial commission after August 1, 2023, is subject to a reduced tax rate of two percent", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "first seventy-five thousand barrels of production or for a period of eighteen months", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "The first two hundred fifty thousand barrels of oil produced during the first thirty-six months after completion from a development incentive well drilled and completed before July 1, 2028", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "is exempt from any taxes imposed under this chapter for a period of five years from the date the incremental production begins", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "for a period of ten years from the date the incremental production begins", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "Shallow gas produced during the first twenty-four months of production from and after the date of first sales of gas from a well completed or recompleted in a shallow gas zone after June 30, 2003, is exempted", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "Gas is exempt from the tax under section 57-51-02.2 for a period of two years and thirty days from the time of first production if the gas is:", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "The payment of the taxes herein imposed must be in full, and in lieu of all ad valorem taxes by the state, counties, cities, towns, townships, school districts, and other municipalities", "supports": "ad_valorem_note" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "upon producing oil or gas leases, upon machinery, appliances, and equipment used in and around any well producing oil or gas", "supports": "ad_valorem_note" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "Any interest in the land, other than that herein enumerated, must be assessed and taxed as other property within the taxing district", "supports": "ad_valorem_note" }, { "file": "sources/sev-nd-tax-oil-gas-severance-tax.md", "quote": "In North Dakota, an oil and gas gross production tax is imposed instead of property taxes on oil and gas producing properties.", "supports": "ad_valorem_note" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "The tax levied attaches to the whole production, including the royalty interest.", "supports": "royalty_owner_note" }, { "file": "sources/sev-nd-ndcc-57-51.md", "quote": "On oil or gas produced and sold, the gross production tax must be paid by the purchaser, and the purchaser is authorized to deduct in making settlement with the producer or royalty owner, the amount of tax paid", "supports": "royalty_owner_note" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "every owner, including any royalty owner, of any part of the oil extracted is deemed for the purposes of this chapter to be engaged in the activity of extracting that oil", "supports": "royalty_owner_note" }, { "file": "sources/sev-nd-ndcc-57-51-1.md", "quote": "deduction of the tax by the purchaser or producer in making settlement with any owner of the oil", "supports": "royalty_owner_note" } ] }, { "abbr": "CO", "state": "Colorado", "levy_name": "Severance tax on oil and gas (C.R.S. 39-29-105); Energy and Carbon Management Commission charge on the market value at the well of oil and natural gas, called the levy in the statute (C.R.S. 34-60-122); production fee for wildlife and land remediation (C.R.S. 33-61-103) and production fee for clean transit (C.R.S. 43-4-1204), both on oil and gas produced on and after July 1, 2025", "oil_rate": "Severance tax graduated on the taxpayer's gross income from oil and gas: 2% under $25,000; 3% from $25,000 to under $100,000; 4% from $100,000 to under $300,000; 5% at $300,000 and over (s. 39-29-105(1)(b)). Plus the commission charge of not more than 1.7 mills per dollar of market value at the well as fixed by commission order, and the two production fees, whose per barrel amounts are set each quarter (current amounts not read).", "gas_rate": "Same graduated severance tax on gross income from oil and gas: 2%, 3%, 4% and 5% by bracket (s. 39-29-105(1)(b)). Plus the commission charge of not more than 1.7 mills per dollar of market value at the well, and the two production fees, whose per mcf amounts are set each quarter (current amounts not read).", "base": "Gross income: the net amount realized from the sale of the oil or gas, whether sold at the wellhead or after transportation, manufacturing and processing, less direct costs actually paid or accrued for transportation, manufacturing and processing, including depreciation (s. 39-29-102(3)(a)).", "key_exemptions_or_reduced_rates": [ "Stripper wells are exempt: oil from wells producing 15 barrels per day or less and gas from wells producing 90,000 cubic feet per day or less, averaged over producing days in the taxable year (s. 39-29-105(1)(b)).", "Ad valorem credit for taxable years 2024 and 2025: 75% of local property taxes on oil and gas leaseholds, leasehold interests, royalties and royalty interests, excluding taxes on equipment and facilities; it was 87.5% for 2000 through 2023 (s. 39-29-105(2)(b)).", "For taxable year 2026 the percentage credit is replaced by a per well credit of 0.65625 times the well's gross income times the total local mill levies at the well's location (s. 39-29-105(2)(c)).", "For taxable years from 2027 the per well credit factor is 0.7656 (s. 39-29-105(2)(d)).", "No ad valorem credit is allowed on production that is exempt from severance tax (s. 39-29-105(2)(b)(III))." ], "ad_valorem_note": "Yes. County assessors value oil and gas leaseholds and lands as real property at 87.5% of the prior year's wellhead selling price, excluding government royalty oil and gas, or 75% for secondary, tertiary or recycling projects (s. 39-7-102). The severance tax is levied in addition to any other tax, with the credit for part of those local property taxes described above.", "royalty_owner_note": "Producers or first purchasers must withhold 1% of gross income from royalty, working and other interest owners and remit it, and the owner claims that amount against the tax on the annual severance tax return (s. 39-29-111; DOR withholding page).", "effective_or_as_of": "Rates and credits per C.R.S. 39-29-105 as printed in Colorado Revised Statutes 2024, last amended by HB 23-1272 effective May 11, 2023; production fees apply to oil and gas produced on and after July 1, 2025.", "source": { "url": "https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-39.pdf", "publisher": "Colorado General Assembly, Office of Legislative Legal Services", "type": "official_statute", "pinpoint": "C.R.S. 39-29-105; 39-29-102(3)(a); 39-29-111; 39-7-102", "accessed": "2026-10-01", "local_copy": "sources/sev-co-crs-2024-title-39.md", "via": "Internet Archive snapshot October 13, 2025" }, "additional_sources": [ { "url": "https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-34.pdf", "publisher": "Colorado General Assembly, Office of Legislative Legal Services", "type": "official_statute", "pinpoint": "C.R.S. 34-60-122(1) to (4)", "accessed": "2026-10-01", "local_copy": "sources/sev-co-crs-2024-title-34.md", "via": "Internet Archive snapshot June 15, 2025" }, { "url": "https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-33.pdf", "publisher": "Colorado General Assembly, Office of Legislative Legal Services", "type": "official_statute", "pinpoint": "C.R.S. 33-61-102(12), 33-61-103(1)", "accessed": "2026-10-01", "local_copy": "sources/sev-co-crs-2024-title-33.md", "via": "Internet Archive snapshot July 20, 2025" }, { "url": "https://leg.colorado.gov/sites/default/files/images/olls/crs2024-title-43.pdf", "publisher": "Colorado General Assembly, Office of Legislative Legal Services", "type": "official_statute", "pinpoint": "C.R.S. 43-4-1204(1)", "accessed": "2026-10-01", "local_copy": "sources/sev-co-crs-2024-title-43.md", "via": "Internet Archive snapshot April 3, 2025" }, { "url": "https://tax.colorado.gov/OGS-withholding", "publisher": "Colorado Department of Revenue", "type": "official_agency", "pinpoint": "Oil and Gas Severance Tax, Withholding Information", "accessed": "2026-10-01", "local_copy": "sources/sev-co-dor-ogs-withholding.md", "via": "Internet Archive snapshot December 6, 2025" }, { "url": "https://tax.colorado.gov/stripper-well-exemption", "publisher": "Colorado Department of Revenue", "type": "official_agency", "pinpoint": "Oil and Gas Severance Tax, Stripper Well Exemption", "accessed": "2026-10-01", "local_copy": "sources/sev-co-dor-stripper-well-exemption.md", "via": "Internet Archive snapshot January 29, 2026" } ], "confidence": "medium", "open_questions": [ "The statutes were read in the Colorado Revised Statutes 2024 edition from Internet Archive copies, because leg.colorado.gov files and tax.colorado.gov was not available when AMR checked; amendments made in the 2025 and 2026 sessions, if any, were not checked.", "The commission charge currently fixed by Energy and Carbon Management Commission order was not read.", "The quarterly amounts of the production fee for wildlife and land remediation and the production fee for clean transit were not read." ], "evidence": [ { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "there shall be levied, collected, and paid for each taxable year commencing on or after January 1, 2000, a tax upon the gross income attributable to the sale of oil and gas severed", "supports": "levy_name, oil_rate, gas_rate" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "The tax for oil and gas shall be at the following rates of the gross income: Under $25,000 2% $25,000 and under $100,000 3% $100,000 and under $300,000 4% $300,000 and over 5%", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-co-crs-2024-title-34.md", "quote": "there is imposed on the market value at the well of all oil and natural gas produced, saved, and sold or transported from the field where produced in this state a charge", "supports": "levy_name, oil_rate, gas_rate" }, { "file": "sources/sev-co-crs-2024-title-34.md", "quote": "a charge not to exceed one and seven- tenths mills on the dollar. The commission shall, by order, fix the amount of such charge", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-co-crs-2024-title-34.md", "quote": "whether he or the purchaser will be responsible for reporting and remitting the levy", "supports": "levy_name" }, { "file": "sources/sev-co-crs-2024-title-33.md", "quote": "the division shall impose a production fee for wildlife and land remediation to be paid quarterly by every producer that applies to all oil and gas produced by the producer in the state on and after July 1, 2025.", "supports": "levy_name, effective_or_as_of" }, { "file": "sources/sev-co-crs-2024-title-33.md", "quote": "the division shall set the production fee amounts applicable to the previous calendar quarter", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-co-crs-2024-title-43.md", "quote": "the enterprise shall impose a production fee for clean transit to be paid quarterly by every producer that applies to all oil and gas produced by the producer in the state on and after July 1, 2025.", "supports": "levy_name, effective_or_as_of" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "For oil and gas, the net amount realized by the taxpayer for sale of the oil or gas, whether the sale occurs at the wellhead or after transportation, manufacturing, and processing of the product.", "supports": "base" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "less deductions for direct costs actually paid or accrued by the taxpayer for transportation, manufacturing, and processing of the product. For purposes of this subsection (3)(a), direct costs include depreciation.", "supports": "base" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "except that oil produced from any wells that produce fifteen barrels per day or less of oil and gas produced from wells that produce ninety thousand cubic feet or less of gas per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-dor-stripper-well-exemption.md", "quote": "Oil produced from any individual well that produces 15 barrels per day or less of oil for the average of all producing days during a taxable year.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "commencing on or after January 1, 2024, but prior to January 1, 2026, an amount equal to seventy-five percent of all ad valorem taxes assessed during the taxable year", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "but prior to January 1, 2024, an amount equal to eighty-seven and one-half percent of all ad valorem taxes", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "upon oil and gas leaseholds and leasehold interests and oil and gas royalties and royalty interests for state, county, municipal, school district, and special district purposes", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "For a taxable year beginning on or after January 1, 2026, but before January 1, 2027, for each well that is not exempt from the state severance tax", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "in an amount calculated by the formula C = 0.65625 x GI x ML", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "ML is the total of all mill levies, fixed not later than December 22 of the preceding calendar year pursuant to section 39-1-111, by all local governments for property at the well's location", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "amount calculated by the formula C = 0.7656 x GI x ML", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "no credit shall be allowed for ad valorem taxes paid or assessed on oil and gas production that is exempt from the state severance tax", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "the assessor shall value such oil and gas leaseholds and lands for assessment, as real property, at an amount equal to", "supports": "ad_valorem_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "at an amount equal to eighty- seven and one-half percent of:", "supports": "ad_valorem_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "The selling price of the oil or gas sold from each wellhead during the preceding calendar year", "supports": "ad_valorem_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "value oil and gas leaseholds and lands employing such projects for assessment as provided in subsection (1) of this section but at an amount equal to seventy-five percent of:", "supports": "ad_valorem_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "In addition to any other tax, there shall be levied, collected, and paid for each taxable year commencing on or after January 1, 2000", "supports": "ad_valorem_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "withhold from the amount owed to such person an amount equal to one percent of the gross income from such interest", "supports": "royalty_owner_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "Every person making a return as required by section 39-29-112 may take credit for the amount withheld by the producer or the first purchaser", "supports": "royalty_owner_note" }, { "file": "sources/sev-co-dor-ogs-withholding.md", "quote": "Producers or first purchasers must withhold from the gross income of all interest owners including royalty, working or any other interest including their own interest.", "supports": "royalty_owner_note" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "L. 2023: (2)(b) and IP(2)(c) amended and (2)(d) added, (HB 23-1272), ch. 167, p. 808, § 13, effective May 11.", "supports": "effective_or_as_of" }, { "file": "sources/sev-co-crs-2024-title-39.md", "quote": "Colorado Revised Statutes 2024 Page 1063 of 1163 Uncertified Printout", "supports": "effective_or_as_of" } ] }, { "abbr": "PA", "state": "Pennsylvania", "levy_name": "No traditional severance tax on natural gas production; instead the Unconventional Gas Well Fee (the Act 13 of 2012 impact fee, 58 Pa.C.S. ch. 23), charged per unconventional gas well to producers", "oil_rate": null, "gas_rate": "Not a percentage or per unit rate. Fixed annual fee per unconventional gas well. Calendar year 2025 schedule published by the Public Utility Commission (average annual NYMEX price $3.427, CPI adjustment 3.9%): horizontal wells $59,700 in year 1, $47,800 in year 2, $35,800 in year 3, $23,900 in years 4 to 10 and $12,100 in years 11 to 15; vertical producing wells $11,900, $9,600, $7,200, then $4,800 in years 4 to 10. The statutory base schedule before CPI adjustment steps up with the price band, for example year 1 runs from $40,000 at a price of $2.25 or less to $60,000 above $5.99.", "base": "Each spud unconventional (shale) gas well per calendar year, set by years since spud, well type (horizontal or vertical) and the average annual NYMEX natural gas price for the year; the fee does not vary with the volume of gas extracted.", "key_exemptions_or_reduced_rates": [ "Vertical unconventional wells pay 20% of the horizontal well fee and owe nothing in years 11 to 15.", "Vertical wells are charged only for a year in which they average more than 90,000 cubic feet in any one month; active vertical wells are charged for 10 years.", "The fee is suspended for a well that is capped or produces no more than a stripper well (90,000 cubic feet a day) within two years after paying the initial fee, and resumes in any year it produces more.", "Fee payments end once the producer certifies that the well has ceased production and has been plugged." ], "ad_valorem_note": "A 2014 Independent Fiscal Office report states that Pennsylvania natural gas reserves are not included in the assessed value of real property and that Pennsylvania does not levy a personal property tax. No current statute or assessment agency text on this point was read.", "royalty_owner_note": null, "effective_or_as_of": "Fee schedule for calendar year 2025, published in the Pennsylvania Bulletin on January 24, 2026 (56 Pa.B. 580); 2025 fees were remitted in April 2026. Statute text is from an archive snapshot of July 15, 2024.", "source": { "url": "https://www.pacodeandbulletin.gov/Display/pabull?file=/secure/pabulletin/data/vol56/56-4/128.html", "publisher": "Pennsylvania Public Utility Commission, notice in the Pennsylvania Bulletin", "type": "official_agency", "pinpoint": "56 Pa.B. 580, Unconventional Gas Well Fees for Calendar Year 2025 table and note (3)", "accessed": "2026-10-01", "local_copy": "sources/sev-pa-pabull-act13-fees-cy2025.md" }, "additional_sources": [ { "url": "https://www.legis.state.pa.us/WU01/LI/LI/CT/HTM/58/00.023..HTM", "publisher": "Pennsylvania General Assembly", "type": "official_statute", "pinpoint": "58 Pa.C.S. s. 2301 (definitions) and s. 2302(b), (b.1), (c), (e), (f)", "accessed": "2026-10-01", "local_copy": "sources/sev-pa-title58-ch23-2301-2302.md", "via": "Internet Archive snapshot July 15, 2024" }, { "url": "https://www.ifo.state.pa.us/getfile.cfm?file=Resources/Documents/Impact_Fee_Update_and_Outlook_2026_06.pdf&view=true", "publisher": "Pennsylvania Independent Fiscal Office", "type": "official_agency", "pinpoint": "Impact Fee Update and Outlook, June 2026, page 1 and Effective Tax Rate section", "accessed": "2026-10-01", "local_copy": "sources/sev-pa-ifo-impact-fee-update-2026-06.md" }, { "url": "https://www.ifo.state.pa.us/getfile.cfm?file=Resources/Documents/NG-Interstate-Comparison-2014-03.pdf&view=true", "publisher": "Pennsylvania Independent Fiscal Office", "type": "official_agency", "pinpoint": "Natural Gas Extraction: An Interstate Tax Comparison (2014), executive summary, introduction, Table 3.1 and Other Taxes and Fees", "accessed": "2026-10-01", "local_copy": "sources/sev-pa-ifo-interstate-comparison-2014.md" } ], "confidence": "medium", "open_questions": [ "No source read states whether any state level levy applies to oil production in Pennsylvania. The Act 13 fee applies only to unconventional gas wells.", "The statute was read from an Internet Archive snapshot of July 15, 2024 because palegis.us and legis.state.pa.us was not available when AMR checked. Amendments after that date were not checked.", "The real property statement comes from a 2014 Independent Fiscal Office report that cites CCH. No current statute, court decision or county assessment guidance was read.", "puc.pa.gov was not available when AMR checked, so the PUC press release and online fee schedule were not read. The Pennsylvania Bulletin notice was used instead.", "No source read says whether producers may charge any part of the fee to royalty owners." ], "evidence": [ { "file": "sources/sev-pa-ifo-interstate-comparison-2014.md", "quote": "Pennsylvania is the only state with significant natural gas production that does not impose a", "supports": "levy_name" }, { "file": "sources/sev-pa-ifo-interstate-comparison-2014.md", "quote": "Pennsylvania levies a tiered annual impact fee per well over a 15 year period", "supports": "levy_name" }, { "file": "sources/sev-pa-ifo-impact-fee-update-2026-06.md", "quote": "the point at which other states levy severance taxes", "supports": "levy_name" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "The fee adopted under subsection (a), (a.1) or (a.4) is imposed on every producer and shall apply to unconventional gas wells spud in this Commonwealth regardless of when spudding occurred.", "supports": "levy_name" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "A bore hole drilled or being drilled for the purpose of or to be used for the production of natural gas from an unconventional formation.", "supports": "levy_name" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Calendar Year 2025:(1) 3.427", "supports": "gas_rate" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "PA, NJ, DE and MD:(2) 3.9%", "supports": "gas_rate" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Year 1 $59,700 $11,900", "supports": "gas_rate" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Year 2 $47,800 $9,600", "supports": "gas_rate" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Year 3 $35,800 $7,200", "supports": "gas_rate" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Year 4—10 $23,900 $4,800", "supports": "gas_rate" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Year 11—15 $12,100 N/A", "supports": "gas_rate" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "If the average annual price of natural gas is not more than $2.25, the fee shall be $40,000 for the calendar year in which the unconventional gas well is spud.", "supports": "gas_rate" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "If the average annual price of natural gas is more than $5.99, the fee shall be $60,000 for the calendar year in which the unconventional gas well is spud.", "supports": "gas_rate" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "the fee shall be determined using the average annual price of natural gas for the calendar year in which the fee is imposed.", "supports": "base" }, { "file": "sources/sev-pa-ifo-interstate-comparison-2014.md", "quote": "determined primarily by the age of the well, and it is not affected by the volume of gas extracted", "supports": "base" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Horizontal unconventional gas wells pay the yearly fee upon spudding plus 2 subsequent years.", "supports": "base" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "The fee for a vertical unconventional gas well shall be 20% of the fee established in subsections (b) and (c), except that the fee under subsection (b)(5) shall not apply.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Vertical wells producing gas levels above a 90,000 cubic feet average in any one given month during the current reporting year are subject to 20% of the applicable horizontal well fee", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Active vertical wells are assessed a fee for 10 years.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "is subsequently capped or does not produce natural gas in quantities greater than that of a stripper well within two years after paying the initial fee, then the fee shall be suspended", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "An unconventional gas well incapable of producing more than 90,000 cubic feet of gas per day during any calendar month", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "Payments of the fee shall cease upon certification to the department by the producer that the unconventional gas well has ceased production and has been plugged", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-pa-ifo-interstate-comparison-2014.md", "quote": "PA Exempt Natural gas reserves are not included in the assessed value of real property.", "supports": "ad_valorem_note" }, { "file": "sources/sev-pa-ifo-interstate-comparison-2014.md", "quote": "Ohio and Pennsylvania do not levy a personal property tax.", "supports": "ad_valorem_note" }, { "file": "sources/sev-pa-pabull-act13-fees-cy2025.md", "quote": "Producer Fees for Calendar Year 2025 [56 Pa.B. 580] [Saturday, January 24, 2026]", "supports": "effective_or_as_of" }, { "file": "sources/sev-pa-ifo-impact-fee-update-2026-06.md", "quote": "Fees are remitted in the following April and distributed in July.", "supports": "effective_or_as_of" }, { "file": "sources/sev-pa-title58-ch23-2301-2302.md", "quote": "The fee shall be reinstated for a calendar year during which the unconventional gas well produces natural gas in quantities greater than that of a stripper well.", "supports": "key_exemptions_or_reduced_rates" } ] }, { "abbr": "WV", "state": "West Virginia", "levy_name": "Severance tax on the privilege of severing natural gas or oil (W. Va. Code 11-13A-3a); the Tax Division also reports a 5.0% severance tax on coalbed methane wells whose proceeds go to local governments", "oil_rate": "5% of gross value for oil from wells that averaged more than 10 barrels a day in the prior calendar year and for all horizontal shale wells. For non shale wells that averaged between 0.5 and 10 barrels a day the statutory special rate is 2.5%, but it is reduced to 0% for taxable years 2026 and 2027 because the Oil and Gas Abandoned Well Plugging Fund held at least $6 million on June 1. Wells under 0.5 barrel a day are exempt.", "gas_rate": "5% of gross value for gas from wells that averaged more than 60,000 cubic feet a day in the prior calendar year and for all horizontal shale wells. For non shale wells that averaged between 5,000 and 60,000 cubic feet a day the statutory special rate is 2.5%, reduced to 0% for taxable years 2026 and 2027. Wells under 5,000 cubic feet a day are exempt. The Tax Division states the same 5.0% rate for natural gas liquids.", "base": "Gross value of the natural gas or oil produced, as shown by the gross proceeds derived from its sale by the producer; the tax is imposed on the person exercising the privilege of severing.", "key_exemptions_or_reduced_rates": [ "Gas from wells averaging under 5,000 cubic feet a day, and oil from wells averaging under 0.5 barrel a day, in the prior calendar year is exempt.", "Free natural gas provided to a surface owner is exempt.", "Production is exempt for up to 10 years from a well returned to production after five consecutive years without marketable production.", "Non shale low volume wells (5,000 to 60,000 cubic feet or 0.5 to 10 barrels a day) carry a 2.5% special rate, set at 0% for taxable years 2026 and 2027 by Administrative Notices 2025-05 and 2026-05.", "Horizontal shale wells in the same low volume bands still pay 5%." ], "ad_valorem_note": "Yes. Oil and natural gas properties, producing and non producing, are also appraised for ad valorem property tax: the Tax Division files annual valuation variables for that purpose, including a minimum working interest appraisal of $500 per well, a flat rate royalty multiplier, and per acre values for non producing property. The severance statute says the tax is in addition to all other taxes imposed by law.", "royalty_owner_note": null, "effective_or_as_of": "Rate structure effective for taxable periods beginning on or after January 1, 2020 (statute snapshot of November 17, 2025). Special low volume rate of 0% for taxable year 2026 (notice issued July 1, 2025) and taxable year 2027 (notice issued July 8, 2026).", "source": { "url": "https://code.wvlegislature.gov/11-13A-3A/", "publisher": "West Virginia Legislature", "type": "official_statute", "pinpoint": "W. Va. Code 11-13A-3a(a), (b)(1) to (3), (c), (e)", "accessed": "2026-10-01", "local_copy": "sources/sev-wv-code-11-13a-3a.md", "via": "Internet Archive snapshot November 17, 2025" }, "additional_sources": [ { "url": "https://tax.wv.gov/Documents/sev/SeveranceTaxes.TaxData.FiscalYears.2015-2026.pdf", "publisher": "West Virginia Tax Division", "type": "official_agency", "pinpoint": "Severance Taxes, Tax Data Fiscal Years 2015 to 2026, section Natural Gas, Natural Gas Liquids, and Oil Severance Taxes", "accessed": "2026-10-01", "local_copy": "sources/sev-wv-taxdiv-severance-taxes-fy2015-2026.md" }, { "url": "https://tax.wv.gov/Documents/AdministrativeNotices/2026/AdministrativeNotice.2026-05.pdf", "publisher": "West Virginia Tax Division", "type": "official_agency", "pinpoint": "Administrative Notice 2026-05, rate for taxable year 2027", "accessed": "2026-10-01", "local_copy": "sources/sev-wv-taxdiv-admin-notice-2026-05.md" }, { "url": "https://tax.wv.gov/Documents/AdministrativeNotices/2025/AdministrativeNotice.2025-05.pdf", "publisher": "West Virginia Tax Division", "type": "official_agency", "pinpoint": "Administrative Notice 2025-05, rate for taxable year 2026", "accessed": "2026-10-01", "local_copy": "sources/sev-wv-taxdiv-admin-notice-2025-05.md" }, { "url": "https://tax.wv.gov/Documents/PropertyTax/2027/NaturalResourcePropertyValuationVariables.Tentative.2027.pdf", "publisher": "West Virginia Tax Division", "type": "official_agency", "pinpoint": "Transmittal letter of July 1, 2026 and oil and gas safe harbor variables, page 15 of 34", "accessed": "2026-10-01", "local_copy": "sources/sev-wv-taxdiv-nr-valuation-variables-ty2027.md" } ], "confidence": "high", "open_questions": [ "code.wvlegislature.gov was not available when AMR checked, so the statute was read from an Internet Archive snapshot of November 17, 2025. A 2026 committee substitute for HB 5398 proposed amending 11-13A-3a on the plugging fund; whether it was enacted was not checked.", "No source read states whether royalty owners bear any share of the severance tax or whether producers deduct it from royalty payments.", "The tax year 2027 valuation variables read are the tentative ones filed July 1, 2026; the final variables due by September 1, 2026 were not read." ], "evidence": [ { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "§11-13A-3a. Imposition of tax on privilege of severing natural gas or oil.", "supports": "levy_name" }, { "file": "sources/sev-wv-taxdiv-severance-taxes-fy2015-2026.md", "quote": "The severance tax rate on coal-bed methane wells is 5.0%", "supports": "levy_name" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "is five percent of the gross value of the natural gas or oil produced by the producer as shown by the gross proceeds derived from the sale thereof by the producer", "supports": "base" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "for oil produced from any well which produced an average in excess of 10 barrels of oil per day", "supports": "oil_rate" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "which produced an average in excess of 60,000 cubic feet of natural gas per day during the calendar year immediately preceding a given taxable year", "supports": "gas_rate" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "excluding wells utilizing horizontal drilling techniques targeting shale formations, which produced an average between 5,000 cubic feet of natural gas per day and 60,000 cubic feet of natural gas per day", "supports": "gas_rate" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "the rate of tax is two and five tenths percent of the gross value of the natural gas or oil produced", "supports": "oil_rate" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "For all natural gas produced from wells utilizing horizontal drilling techniques targeting shale formations", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "then the special rate of tax imposed under subdivision (2), subsection (b) of this section is reduced to zero for the taxable year beginning on and after the next succeeding January 1", "supports": "oil_rate" }, { "file": "sources/sev-wv-taxdiv-severance-taxes-fy2015-2026.md", "quote": "The current state severance tax rate on natural gas, natural gas liquids, and oil is 5.0% of gross proceeds.", "supports": "gas_rate" }, { "file": "sources/sev-wv-taxdiv-severance-taxes-fy2015-2026.md", "quote": "the 2.5% tax was suspended for Tax Year 2026 and will be suspended for Tax Year 2027.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wv-taxdiv-admin-notice-2025-05.md", "quote": "will be 0% of the gross value of gas or oil produced for taxable year 2026 (January 1, 2026 through December 31, 2026).", "supports": "effective_or_as_of" }, { "file": "sources/sev-wv-taxdiv-admin-notice-2026-05.md", "quote": "will be 0% of the gross va lue of gas or oil produced for taxable year 2027", "supports": "effective_or_as_of" }, { "file": "sources/sev-wv-taxdiv-admin-notice-2026-05.md", "quote": "Notice of this determination will be filed in the West Virginia Register. Issued: July 8, 2026", "supports": "effective_or_as_of" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "Provided, That effective for taxable periods beginning on or after January 1, 2020:", "supports": "effective_or_as_of" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "(1) Free natural gas provided to any surface owner", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "natural gas produced from any well which produced an average of less than 5,000 cubic feet of natural gas per day during the calendar year immediately preceding a given taxable period", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "oil produced from any oil well which produced an average of less than one-half barrel of oil per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "for a maximum period of 10 years, all natural gas or oil produced from any well which has not produced marketable quantities of natural gas or oil for five consecutive years", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "applies to all persons severing gas or oil in this state, and is in addition to all other taxes imposed by law", "supports": "ad_valorem_note" }, { "file": "sources/sev-wv-taxdiv-nr-valuation-variables-ty2027.md", "quote": "for use in determining the appraised value of coal, oil, natural gas, managed timberland and other natural resource properties for ad valorem tax purposes", "supports": "ad_valorem_note" }, { "file": "sources/sev-wv-taxdiv-nr-valuation-variables-ty2027.md", "quote": "Minimum Working Interest Appraisal = $500 per well", "supports": "ad_valorem_note" }, { "file": "sources/sev-wv-taxdiv-nr-valuation-variables-ty2027.md", "quote": "Flat Rate Royalty Multiplier = 5.75", "supports": "ad_valorem_note" }, { "file": "sources/sev-wv-taxdiv-severance-taxes-fy2015-2026.md", "quote": "bed methane wells are dedicated to local governments.", "supports": "levy_name" }, { "file": "sources/sev-wv-code-11-13a-3a.md", "quote": "there is levied and shall be collected from every person exercising the privilege an annual privilege tax", "supports": "base" }, { "file": "sources/sev-wv-taxdiv-nr-valuation-variables-ty2027.md", "quote": "The non-producing property value for each county is determined by multiplying the average delay rental by a factor", "supports": "ad_valorem_note" } ] }, { "abbr": "LA", "state": "Louisiana", "levy_name": "Severance tax on oil, condensate and natural gas (R.S. 47:633); Oilfield Site Restoration Fee (R.S. 30:87), collected by the Department of Revenue", "oil_rate": "12.5% of value for oil and condensate from wells completed before July 1, 2025 and 6.5% for wells completed on or after July 1, 2025 (Act 295 of 2025, effective July 1, 2025, per LDR). Incapable wells 6.25%, stripper wells 3.125%, and stripper oil is exempt while the 30 day average posted price is under $20 per barrel. Oilfield Site Restoration Fee: 1.5 cents per barrel at an oil price of $60 or less, 3 cents above $60 up to $90, and 4.5 cents above $90.", "gas_rate": "Per thousand cubic feet, adjusted each July 1 and never less than 7 cents: $0.1514 per mcf for July 1, 2026 to June 30, 2027 ($0.1052 for July 1, 2025 to June 30, 2026). LDR lists an incapable oil well gas rate of $0.03 per mcf and an incapable gas well gas rate of $0.013 per mcf. Oilfield Site Restoration Fee: three-tenths of one cent per mcf.", "base": "Oil: value at the time and place of severance, the higher of gross receipts from the first purchaser less trucking, barging and pipeline fees, or the posted field price (R.S. 47:633(7)(a), archive text of August 8, 2025). Gas: volume in thousand cubic feet at a base pressure of 15.025 pounds per square inch absolute and 60 degrees Fahrenheit.", "key_exemptions_or_reduced_rates": [ "Stripper oil wells (10 barrels per day or less) pay 3.125% and are exempt in any month the average posted price is under $20 per barrel.", "Incapable oil wells pay 6.25% of value for all production regardless of completion date (Act 295 of 2025).", "Oil from inactive wells pays 3.125% and from orphan wells 1.5625% (LDR oil page; the LDR 2025 summary prints 1.565%), for production that starts before October 1, 2028; inactive and orphan gas pay 25% or 12.5% of the full rate.", "Horizontal wells: the gas exemption lasts 18 months or until payout for wells completed on or after July 1, 2025, versus 24 months for earlier wells (Act 284 of 2025); LDR lists a 1.3% oil rate for horizontal wells completed after July 1, 2025.", "Tertiary recovery projects approved on or after July 1, 2009 that have reached payout pay 3.25% for wells completed after July 1, 2025 and 6.25% for earlier wells." ], "ad_valorem_note": null, "royalty_owner_note": "The Department of Revenue states that returns are filed by each severer who withholds tax from royalty payments and by each purchaser who withholds tax from amounts due a seller or owner.", "effective_or_as_of": "Gas rate $0.1514 per mcf for July 1, 2026 to June 30, 2027 (LDR gas page updated September 28, 2026); oil rates per Act 295 of 2025, effective July 1, 2025.", "source": { "url": "https://revenue.louisiana.gov/businesses/severance-tax/gas/", "publisher": "Louisiana Department of Revenue", "type": "official_agency", "pinpoint": "Gas page, FY 2027 Gas Tax Rates table and FAQ on oil and condensate rates", "accessed": "2026-10-01", "local_copy": "sources/sev-la-ldr-gas-severance-tax.md" }, "additional_sources": [ { "url": "https://revenue.louisiana.gov/businesses/severance-tax/oil/", "publisher": "Louisiana Department of Revenue", "type": "official_agency", "pinpoint": "Oil Severance Tax, Rate of Tax table", "accessed": "2026-10-01", "local_copy": "sources/sev-la-ldr-oil-severance-tax.md" }, { "url": "https://dam.ldr.la.gov/publications/2025%20Regular%20Session%20Legislative%20Summaries%20rev%2010-3-25.pdf", "publisher": "Louisiana Department of Revenue", "type": "official_agency", "pinpoint": "2025 Regular Session Legislative Summaries, Severance Tax, pages 12 to 13", "accessed": "2026-10-01", "local_copy": "sources/sev-la-ldr-2025-legislative-summaries.md" }, { "url": "https://dam.ldr.la.gov/publications/6.26.26%202026%20Legislative%20Summaries%20Final_Posting_1.pdf", "publisher": "Louisiana Department of Revenue", "type": "official_agency", "pinpoint": "2026 Legislative Summaries, Severance Tax", "accessed": "2026-10-01", "local_copy": "sources/sev-la-ldr-2026-legislative-summaries.md" }, { "url": "https://revenue.louisiana.gov/businesses/severance-tax/oil-site-restoration/", "publisher": "Louisiana Department of Revenue", "type": "official_agency", "pinpoint": "Oil Site Restoration, Rate of Fee", "accessed": "2026-10-01", "local_copy": "sources/sev-la-ldr-oilfield-site-restoration-fee.md" }, { "url": "https://legis.la.gov/Legis/Law.aspx?d=102399", "publisher": "Louisiana State Legislature", "type": "official_statute", "pinpoint": "RS 47:633(7)(a) to (c) and (9)", "accessed": "2026-10-01", "local_copy": "sources/sev-la-rs-47-633.md", "via": "Internet Archive snapshot August 8, 2025" } ], "confidence": "medium", "open_questions": [ "The current text of R.S. 47:633 was not read: legis.la.gov was not available when AMR checked and the latest archive copy (August 8, 2025) predates Acts 295 and 373 of 2025, while the LDR gas page already cites renumbered provisions such as R.S. 47:633(A)(3)(a).", "LDR pages say the 6.5% oil rate applies to wells completed after July 1, 2025, while the LDR 2025 legislative summary says on or after July 1, 2025; the enrolled text of Act 295 was not read.", "Whether producing minerals or oil and gas production are also subject to local ad valorem tax in Louisiana was not read in an official source; the Louisiana Tax Commission site was not available.", "The Oilfield Site Restoration Fee amounts come from an LDR page updated February 19, 2025; Act 458 of 2025 and Act 662 of 2026 changed parts of R.S. 30:87, so the current fee schedule was not confirmed." ], "evidence": [ { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "Full Rate (Wells completed after July 1, 2025) : 6.5 percent of value", "supports": "oil_rate" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "Full Rate (Wells completed before July 1, 2025) : 12.5 percent of value", "supports": "oil_rate" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "Incapable Rate : 6.25 percent of value Stripper Rate : 3.125 percent of value", "supports": "oil_rate, key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "Act 295 (HB 600) reduces the severance tax rate on oil from 12.5% to 6.5% for wells completed on or after July 1, 2025.", "supports": "oil_rate, effective_or_as_of" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "These rates apply to all production regardless of well completion date.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "For production commencing after October 1, 2028, the inactive gas well rate is 50% of the full rate and the orphan gas well rate is 25% of the full rate. Effective July 1, 2025.", "supports": "effective_or_as_of, key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "Stripper oil is exempt as long as the average posted price for a 30-day period is less than $20 per barrel", "supports": "oil_rate, key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oilfield-site-restoration-fee.md", "quote": "The fee shall be one and one-half cents per barrel on crude oil and condensate if the price of oil is at or below sixty dollars per barrel.", "supports": "levy_name, oil_rate" }, { "file": "sources/sev-la-ldr-oilfield-site-restoration-fee.md", "quote": "The fee shall be three cents per barrel on crude oil and condensate if the price of oil is above sixty dollars and at or below ninety dollars per barrel.", "supports": "oil_rate" }, { "file": "sources/sev-la-ldr-oilfield-site-restoration-fee.md", "quote": "The fee shall be four and one-half cents per barrel on crude oil and condensate if the price of oil is above ninety dollars per barrel.", "supports": "oil_rate" }, { "file": "sources/sev-la-ldr-oilfield-site-restoration-fee.md", "quote": "The fee shall be three-tenths of one cent per thousand cubic feet.", "supports": "gas_rate" }, { "file": "sources/sev-la-ldr-oilfield-site-restoration-fee.md", "quote": "Every operator of record of producing oil and/or gas wells must submit a return and make payments of the fees imposed by LA R.S. 30:87.", "supports": "levy_name" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "is adjusted annually on July 1 and may never be less than 7 cents.", "supports": "gas_rate" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "b. Full Rate - 7/1/26 to 6/30/27 [R.S. 47:633(A)(3)(a)] $0.1514 per MCF", "supports": "gas_rate, effective_or_as_of" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "a. Full Rate - 7/1/25 to 6/30/26 [R.S. 47:633(9)(d)(i)] $0.1052 per MCF", "supports": "gas_rate" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "c. Incapable oil well gas rate [R.S. 47:633(A)(5)(b)] $0.03 per MCF", "supports": "gas_rate" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "d. Incapable gas-well gas rate [R.S. 47:633(A)(5)(c)] $0.013 per MCF", "supports": "gas_rate" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "Updated September 28, 2026 Frequently-Asked Questions How do I file oil and gas severance tax returns?", "supports": "effective_or_as_of" }, { "file": "sources/sev-la-rs-47-633.md", "quote": "On oil twelve and one-half percentum of its value at the time and place of severance.", "supports": "base, levy_name" }, { "file": "sources/sev-la-rs-47-633.md", "quote": "Such value shall be the higher of (1) the gross receipts received from the first purchaser, less charges for trucking, barging and pipeline fees, or (2) the posted field price.", "supports": "base" }, { "file": "sources/sev-la-ldr-gas-severance-tax.md", "quote": "per 1,000 cubic feet at a base pressure of 15.025 pounds per square inch absolute and at 60 degrees Fahrenheit", "supports": "base" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "f. Inactive Reduced Oil Rate 3.125% of value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "g. Orphan Reduced Oil Rate 1.5625% of value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "For oil production that commences prior to October 1, 2028, the reduced rate on oil produced from inactive oil wells is 3.125% and from orphan oil wells is 1.565%.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "The reduced rate on oil produced from incapable wells is set at a rate of 6.25% rather than 50% of the full rate.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-rs-47-633.md", "quote": "certified by the Department of Revenue that such well is incapable of producing an average of more than ten barrels of oil per producing day during the entire taxable month", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "For production commencing prior to October 1, 2028, the inactive well rate remains 25% of the full rate and the orphan rate is 12.5% of the full rate.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "Act 284 (HB 495) provides that the exemption for gas produced from a horizontal well completed on or after July 1, 2025, is for a period of 18 months or until payout of the well cost is achieved", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "s. Horizontal wells completed after July 1, 2025 1.3% of value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "Tertiary wells approved on or after July 1, 2009 that have reached payout", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "l. Tertiary - Full Rate - wells completed after July 1, 2025 3.25 % of value", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-la-ldr-oil-severance-tax.md", "quote": "A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.", "supports": "royalty_owner_note" }, { "file": "sources/sev-la-ldr-2025-legislative-summaries.md", "quote": "Act 373 (HB 518) retains current tax rates and structure and makes technical changes to the language in La. R.S. 47:633 to remove outdated language.", "supports": "effective_or_as_of" }, { "file": "sources/sev-la-ldr-2026-legislative-summaries.md", "quote": "the fee for gas produced from incapable gas wells is 17.5% of the full-rate fee. Effective July 1, 2026.", "supports": "levy_name" } ] }, { "abbr": "WY", "state": "Wyoming", "levy_name": "Severance tax on crude oil, lease condensate and natural gas (W.S. 39-14-203 and 39-14-204), totaling 6%, of which 1.5% is imposed by Wyoming Constitution article 15, section 19", "oil_rate": "6% of the value of the gross product, made up of 1.5% + 0.5% + 2% + 2% (W.S. 39-14-204(a)). The DOR rate table for January 1, 2025 through December 31, 2026 lists oil base 6.0%, lease condensate 6.0%, stripper (10 barrel code) 4.0%, tertiary 4.0%, and 4.0% and 5.0% codes that wells drilled after December 31, 2025 are not eligible for.", "gas_rate": "6% of the value of the gross product (W.S. 39-14-204(a)). The DOR rate table for January 1, 2025 through December 31, 2026 lists natural gas base 6.0%, and 4.0% and 5.0% codes that wells drilled after December 31, 2025 are not eligible for.", "base": "Value of the gross product extracted: fair market value determined after the production process is completed, and expenses incurred by the producer before the point of valuation are not deductible (W.S. 39-14-203(a)(i), (b)(ii)).", "key_exemptions_or_reduced_rates": [ "Stripper production is exempt from the 2% levied under W.S. 39-14-204(a)(iii), leaving 4% (W.S. 39-14-205(a)); stripper means a property averaging no more than 10 barrels per well per day in the prior year if the price received was $20 or more, or 15 barrels if less (W.S. 39-14-201(a)(xxiv)).", "Wells drilled on or after July 1, 2020 and before December 31, 2025: the 2% under (a)(iv) is exempt for the first 6 months and cut to 1% for the next 6 months, only if at first production the 12 month average WTI price was under $50 per barrel (oil) or the Henry Hub price under $2.95 per thousand cubic feet (gas) (W.S. 39-14-205(n)).", "Oil from previously shut-in wells is exempt from the taxes under (a)(ii), (iii) and (iv) for 60 months of renewed production or until the price received averages $25 or more for 6 months (W.S. 39-14-205(h)); the DOR table marks the renewed production code as currently invalid.", "Tertiary production from projects certified after July 1, 2026 and before July 1, 2031 is exempt from the 2% under (a)(iii) for 5 years (W.S. 39-14-205(q)).", "Severance tax paid on carbon dioxide injected for tertiary oil recovery is credited against the tax on the oil produced (W.S. 39-14-205(d)).", "Gas vented or flared under commission authority, or reinjected or consumed on the lease before sale, has no value and is exempt (W.S. 39-14-205(j))." ], "ad_valorem_note": "Yes, in addition. The severance tax is in addition to all other taxes, including the ad valorem taxes in W.S. 39-13-101 through 39-13-111 (W.S. 39-14-203(a)(i)). The gross product of minerals is taxed at 100% of fair market value (W.S. 39-11-101(a)(xvii)), and producers pay the county ad valorem tax on mineral production monthly to the department at no less than the prior year county mill levy (W.S. 39-13-113).", "royalty_owner_note": "Any person owning an interest in the production is liable for the severance tax to the extent of that interest and a taxpayer paying it may deduct the tax from amounts due to the interest owners, while for ad valorem tax on production the lessor is liable only for its retained interest, royalty or otherwise (W.S. 39-14-203(c)).", "effective_or_as_of": "W.S. 39-14-204 and 39-14-205 as published by the Wyoming Legislature in the title 39 file read October 1, 2026 (server date May 8, 2026); DOR severance tax rate table for January 1, 2025 through December 31, 2026.", "source": { "url": "https://wyoleg.gov/statutes/compress/title39.pdf", "publisher": "Wyoming Legislature", "type": "official_statute", "pinpoint": "W.S. 39-14-203, 39-14-204, 39-14-205, 39-14-201(a)(xxiv), 39-13-113, 39-11-101(a)(xvii)", "accessed": "2026-10-01", "local_copy": "sources/sev-wy-statutes-title-39.md" }, "additional_sources": [ { "url": "https://drive.google.com/file/d/1qsnFF8xCJIAe8kveeg24ugzi4S3pD4dl/view?usp=drive_link", "publisher": "Wyoming Department of Revenue, Mineral Tax Division", "type": "official_agency", "pinpoint": "Severance Tax Rates 1/1/25 through 12/31/26, oil and natural gas rows", "accessed": "2026-10-01", "local_copy": "sources/sev-wy-dor-severance-tax-rates.md" } ], "confidence": "high", "open_questions": [ "The DOR rate table does not cite the statute behind its 4.0% and 5.0% oil and gas codes; this record reports them only as listed.", "The DOR table lists a tertiary oil rate of 4.0% without a statute reference; W.S. 39-14-205(q) covers only projects certified after July 1, 2026, so the basis of the table's tertiary code was not confirmed." ], "evidence": [ { "file": "sources/sev-wy-statutes-title-39.md", "quote": "There is levied a severance tax on the value of the gross product extracted for the privilege of severing or extracting crude oil, lease condensate or natural gas in the state.", "supports": "levy_name, base" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "the total severance tax on crude oil, lease condensate or natural gas shall be six percent (6%), comprising one and one-half percent (1.5%) imposed by the Wyoming constitution article 15, section 19", "supports": "levy_name, oil_rate, gas_rate" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "(i) One and one-half percent (1.5%); plus (ii) One-half percent (.5%); plus (iii) Two percent (2%); plus", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-wy-dor-severance-tax-rates.md", "quote": "SEVERANCE TAX RATES 1/1/25 THROUGH 12/31/26", "supports": "oil_rate, gas_rate, effective_or_as_of" }, { "file": "sources/sev-wy-dor-severance-tax-rates.md", "quote": "Natural Gas base 6.0% BAS Natural Gas*** natural gas 4% 4.0% NW4", "supports": "gas_rate" }, { "file": "sources/sev-wy-dor-severance-tax-rates.md", "quote": "Oil lease condensate 6.0% LCD", "supports": "oil_rate" }, { "file": "sources/sev-wy-dor-severance-tax-rates.md", "quote": "Oil base 6.0% BAS Oil renewed production 1.5% CURRENTY INVALID Oil stripper 10 4.0% S10", "supports": "oil_rate, key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-dor-severance-tax-rates.md", "quote": "oil 5% 5.0% NW5 Oil tertiary 4.0% TE3", "supports": "oil_rate" }, { "file": "sources/sev-wy-dor-severance-tax-rates.md", "quote": "*** Any natural gas/oil wells drilled after 12/31/2025 will not be eligible for these rates.", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "The fair market value for crude oil, lease condensate and natural gas shall be determined after the production process is completed.", "supports": "base" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "expenses incurred by the producer prior to the point of valuation are not deductible in determining the fair market value of the mineral", "supports": "base" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "Stripper production is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii).", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "Ten (10) barrels per day per well during the preceding calendar year if the average price received by the producer for production from the property was twenty dollars ($20.00) or more per barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "Crude oil and natural gas production resulting from any well that is drilled on or after July 1, 2020 and prior to December 31, 2025 as certified, by the oil and gas conservation commission, is exempt", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "fifty dollars ($50.00) or more per barrel at the time of first production from the well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "two dollars and ninety-five cents ($2.95) or more per thousand cubic feet at the time of first production from the well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "shall reduce the rate under W.S. 39-14-204(a)(iv) to one percent (1%) for the next six (6) months of production.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "Crude oil produced from previously shut-in wells is exempt from the severance taxes imposed by W.S. 39-14-204(a)(ii), (iii) and (iv) for the first sixty (60) months of renewed production", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "Tertiary production resulting from projects certified by the Wyoming oil and gas conservation commission after July 1, 2026 and before July 1, 2031 is exempt from the severance taxes imposed by W.S. 39-14-204(a)(iii) for a period of five (5) years", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "all Wyoming severance taxes paid on the carbon dioxide gas injected shall be deducted from and allowed as a credit against the severance taxes imposed on the oil produced by the injection.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "Natural gas which is vented or flared under the authority of the Wyoming oil and gas conservation commission", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "The tax imposed by this subsection shall be in addition to all other taxes imposed by law including, but not limited to, ad valorem taxes imposed by W.S. 39-13-101 through 39-13-111.", "supports": "ad_valorem_note" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "(A) Gross product of minerals and mine products, one hundred percent (100%);", "supports": "ad_valorem_note" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "shall pay the ad valorem tax on mineral production for each county on a monthly basis", "supports": "ad_valorem_note" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "by applying the mill levy rate established by the county in the immediately preceding year to the value of the gross product of minerals and mine products produced each month", "supports": "ad_valorem_note" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "any person owning an interest in the crude oil, lease condensate or natural gas production to the extent of their interest ownership are liable for the payment of the severance taxes", "supports": "royalty_owner_note" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "may deduct the taxes paid from any amounts due or to become due to the interest owners of such production in proportion to the interest ownership.", "supports": "royalty_owner_note" }, { "file": "sources/sev-wy-statutes-title-39.md", "quote": "the lessor is liable for the payment of ad valorem taxes on crude oil, lease condensate or natural gas production removed only to the extent of the lessor's retained interest under the lease, whether royalty or otherwise", "supports": "royalty_owner_note" } ] }, { "abbr": "OH", "state": "Ohio", "levy_name": "Severance tax (R.C. 5749.02); oil and gas regulatory cost recovery assessment (R.C. 1509.50), which the Department of Taxation describes as not part of the severance tax but reported on the severance tax return", "oil_rate": "Severance tax of 10 cents per barrel, plus a regulatory cost recovery assessment of 10 cents per barrel on production of non domestic wells.", "gas_rate": "Severance tax of 2.5 cents per Mcf (thousand cubic feet), plus a regulatory cost recovery assessment of half a cent per Mcf on production of non domestic wells.", "base": "Volume severed: a flat amount for each barrel of oil and each thousand cubic feet of natural gas extracted from the soil or water of Ohio, imposed on the severer.", "key_exemptions_or_reduced_rates": [ "Natural resources severed from an exempt domestic well are not subject to the severance tax (R.C. 5749.03).", "Since October 1, 2017 gas severed by an exempt domestic well is exempt, replacing the former $1,000 exemption for resources severed from the severer's own land (H.B. 49 of 2017).", "The regulatory cost recovery assessment applies to certain non exempt well owners and is based on production of non domestic wells." ], "ad_valorem_note": "Yes. The Tax Commissioner states that under R.C. 5713.05 and 5713.06 oil and natural gas reserves, or the value of any right to them, are assessed and taxed as real property, and that this tax is not a production or severance tax. For tax year 2026 the uniform formula values oil at $4,400 per barrel of average daily production (one barrel or more; $2,640 below one barrel) and gas at $180 per Mcf of average daily production (8 Mcf or more; $90 below).", "royalty_owner_note": null, "effective_or_as_of": "Rates as stated in the Department of Taxation annual report for fiscal year 2025, whose comparison data are as of August 6, 2025 and which notes that H.B. 96 of 2025 changed only the coal rate. Real property valuation formula for tax year 2026 adopted April 27, 2026.", "source": { "url": "https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/communications/publications/annual_reports/2025annualreport.pdf", "publisher": "Ohio Department of Taxation", "type": "official_agency", "pinpoint": "Annual Report FY 2025, Severance Tax chapter: Tax Rates (R.C. 5749.02), Exemptions and Credits, Special Provisions, History of Major Changes (report pages 84 to 86)", "accessed": "2026-10-01", "local_copy": "sources/sev-oh-odt-annual-report-fy2025-severance.md" }, "additional_sources": [ { "url": "https://codes.ohio.gov/ohio-revised-code/section-5749.02", "publisher": "Ohio Legislative Service Commission (Ohio Revised Code)", "type": "official_statute", "pinpoint": "R.C. 5749.02(A)(5) and (A)(6), version effective September 29, 2017", "accessed": "2026-10-01", "local_copy": "sources/sev-oh-orc-5749-02-version-2017.md", "via": "Internet Archive snapshot August 4, 2025" }, { "url": "https://dam.assets.ohio.gov/image/upload/tax.ohio.gov/government/cy2026-values.pdf", "publisher": "Ohio Department of Taxation, Tax Commissioner", "type": "official_agency", "pinpoint": "Administrative Journal Entry 26-04-0142, tax year 2026 oil and gas valuation", "accessed": "2026-10-01", "local_copy": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md" } ], "confidence": "high", "open_questions": [ "codes.ohio.gov and the Ohio legislature hosts was not available when AMR checked, and the archive holds no copy of the R.C. 5749.02 version effective September 30, 2025; the statute text read is the 2017 version. The rates rely on the Department of Taxation report, which notes H.B. 96 changed only the coal rate.", "R.C. 1509.50 (regulatory cost recovery assessment) was not read directly; its rates come from the Department of Taxation report.", "No source read states whether royalty owners bear any share of the severance tax or the assessment." ], "evidence": [ { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "Although not part of the severance tax, certain non-exempt oil and gas well owners are subject to the oil and gas regulatory cost recovery assessment.", "supports": "levy_name" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "per thousand cubic feet of natural gas, and is reported on the severance tax return by either the owner or severer.", "supports": "levy_name" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "Oil 10 cents per barrel", "supports": "oil_rate" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "Natural Gas 2.5 cents per Mcf", "supports": "gas_rate" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "non-domestic wells at 10 cents per barrel of oil and a ½ cent per thousand cubic feet of natural gas", "supports": "gas_rate" }, { "file": "sources/sev-oh-orc-5749-02-version-2017.md", "quote": "(5) Ten cents per barrel of oil;", "supports": "oil_rate" }, { "file": "sources/sev-oh-orc-5749-02-version-2017.md", "quote": "(6) Two and one-half cents per thousand cubic feet of natural gas;", "supports": "gas_rate" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "The tax is levied on the weight or volume of certain natural resources extracted from the soil or water of Ohio.", "supports": "base" }, { "file": "sources/sev-oh-orc-5749-02-version-2017.md", "quote": "The tax shall be imposed upon the severer at the rates prescribed by this section", "supports": "base" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "Natural resources severed from an exempt domestic well are not subject to tax.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "severer and instead exempts gas severed by an exempt domestic well on and after Oct. 1, 2017.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "The assessment is based on production of non-domestic wells at 10 cents per barrel of oil", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "Under provisions of Revised Code sections 5713.05 and 5713.06, oil and natural gas reserves or the value of any right to such minerals are assessed and taxed as real property.", "supports": "ad_valorem_note" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "the resulting tax is not to be considered as either a production or severance tax.", "supports": "ad_valorem_note" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "Average Daily Production: one barrel or more $4,400 per barrel", "supports": "ad_valorem_note" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "Average Daily Production: less than one barrel $2,640 per barrel", "supports": "ad_valorem_note" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "Average Daily Production: eight MCF or more $180 per MCF", "supports": "ad_valorem_note" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "Average Daily Production: less than eight MCF $90 per MCF", "supports": "ad_valorem_note" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "Comparisons with Competitor States (as of August 6, 2025).", "supports": "effective_or_as_of" }, { "file": "sources/sev-oh-odt-annual-report-fy2025-severance.md", "quote": "H.B. 96 reduced the tax rate on coal from 10 cents per ton to 8 cents per ton.", "supports": "effective_or_as_of" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "Date: APR 2 7 2026", "supports": "effective_or_as_of" }, { "file": "sources/sev-oh-odt-oil-gas-valuation-ty2026.md", "quote": "In the matter of adopting a uniform formula for the valuation of oil and gas deposits in the 88 counties in the State for tax year 2026", "supports": "effective_or_as_of" } ] }, { "abbr": "MT", "state": "Montana", "levy_name": "Oil and natural gas production tax (Oil and Gas Production Tax Act, MCA 15-36-301 and following), a single tax enacted to replace the former net proceeds, severance, privilege and license and other extraction taxes. By statute the rates must be adjusted to include the Board of Oil and Gas Conservation privilege and license tax and the oil and gas natural resource distribution account tax, 0.3% combined, and the Department's published rates are 0.3 point above the statutory schedule", "oil_rate": "Department of Revenue rates effective January 1, 2024, working interest and nonworking (royalty) interest: first 12 months of production 0.80% and 15.10%; pre-1999 wells after the incentive period 12.80% and 15.10%; post-1999 wells after the incentive period 9.30% and 15.10%; pre-1999 stripper oil 9.30% and 15.10%; post-1999 stripper oil 5.30% on the first 10 barrels and 9.30% above, only in a quarter when the producer's average Montana oil price is under $30, nonworking 15.10%; wells averaging 3 barrels a day or less 0.80% (stripper well exemption) when the producer's quarterly average price is under $54, otherwise 5.30% (stripper well bonus), nonworking 15.10%; horizontal wells first 18 months 0.80% and 15.10%; new or expanded secondary recovery 8.80% and tertiary 6.10%, nonworking 15.10%. The statute sets the same rates 0.3 point lower before the add on (for example 0.5%, 12.5%, 9% and 14.8%).", "gas_rate": "Department of Revenue rates effective January 1, 2024, working interest and nonworking (royalty) interest: first 12 months of production 0.80% and 15.10%; pre-1999 wells after the incentive period 15.10% and 15.10%; post-1999 wells after the incentive period 9.30% and 15.10%; pre-1999 stripper wells averaging under 60 Mcf a day 11.30% and 15.10%; horizontally completed wells first 18 months 0.80% and 15.10%. Statutory rates before the 0.3% add on are 0.5%, 14.8%, 9%, 11% and 0.5% for working interests and 14.8% for nonworking interests.", "base": "Gross taxable value of production: barrels or cubic feet produced and sold each month, less oil or gas used in operating the well, times the average value at the mouth of the well as determined by the Department of Revenue; a royalty administration fee of up to 25 cents a barrel is not counted as value.", "key_exemptions_or_reduced_rates": [ "Any interest in production owned by the state or a local government is exempt.", "Royalties received by an Indian tribe from on reservation production under the Indian Mineral Leasing Act of 1938, by the United States (including as trustee for individual Indians), or by the state, a county or a municipal government in Montana are exempt.", "Working interest incentive rate of 0.80% (0.5% statutory) for the first 12 months of a new well and the first 18 months of a horizontally completed well.", "Wells averaging 3 barrels a day or less pay 0.80% when the producer's quarterly average Montana oil price is under $54, otherwise 5.30%.", "Incremental production from new or expanded secondary recovery (8.80%) and tertiary recovery (6.10%) is taxed at reduced working interest rates, subject to $54 price conditions for secondary recovery and for tertiary projects approved March 23, 2017 to February 18, 2019.", "For the quarter ending June 30, 2026 the average WTI price was $95.6497, so the price limited tertiary incentive was not available." ], "ad_valorem_note": "MCA 15-36-302 states that the production tax replaced all net proceeds taxes, severance taxes, privilege and license taxes, and other extraction taxes on oil and natural gas production. Separately, MCA 15-6-138 lists machinery, fixtures and equipment used for oil and gas production as class eight property. No source read says whether the mineral interest itself is assessed for local property tax.", "royalty_owner_note": "Royalty and other nonworking interest owners bear the nonworking interest rate (15.10% published, 14.8% statutory), which incentives do not reduce; the operator pays the tax for all owners and, unless a contract or lease provides otherwise, deducts each royalty owner's pro rata share from settlements.", "effective_or_as_of": "Department of Revenue rate tables effective January 1, 2024; Montana Code Annotated 2025; incentive status per the Department's 2nd quarter 2026 incentive letter page, read October 1, 2026.", "source": { "url": "https://revenue.mt.gov/taxes/natural-resource-taxes/oil-and-natural-gas-production", "publisher": "Montana Department of Revenue", "type": "official_agency", "pinpoint": "Natural Gas Production Tax Rates and Oil Production Tax Rates tables (effective Jan 1, 2024), Production Incentives, Exempt Royalties", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-dor-oil-natural-gas-production-tax.md" }, "additional_sources": [ { "url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0360/part_0030/section_0040/0150-0360-0030-0040.html", "publisher": "Montana Legislature (Montana Code Annotated 2025)", "type": "official_statute", "pinpoint": "MCA 15-36-304(2), (5), (6), (7), (8)", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-mca-15-36-304.md" }, { "url": "https://revenue.mt.gov/taxes/natural-resource-taxes/oil-incentives/", "publisher": "Montana Department of Revenue", "type": "official_agency", "pinpoint": "Oil Incentives for 2nd Quarter 2026", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-dor-oil-incentives-q2-2026.md" }, { "url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0360/part_0030/section_0020/0150-0360-0030-0020.html", "publisher": "Montana Legislature (Montana Code Annotated 2025)", "type": "official_statute", "pinpoint": "MCA 15-36-302(2)(a)", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-mca-15-36-302.md" }, { "url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0360/part_0030/section_0050/0150-0360-0030-0050.html", "publisher": "Montana Legislature (Montana Code Annotated 2025)", "type": "official_statute", "pinpoint": "MCA 15-36-305(1) and (2)", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-mca-15-36-305.md" }, { "url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0360/part_0030/section_0090/0150-0360-0030-0090.html", "publisher": "Montana Legislature (Montana Code Annotated 2025)", "type": "official_statute", "pinpoint": "MCA 15-36-309", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-mca-15-36-309.md" }, { "url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0360/part_0030/section_0100/0150-0360-0030-0100.html", "publisher": "Montana Legislature (Montana Code Annotated 2025)", "type": "official_statute", "pinpoint": "MCA 15-36-310(1) and (2)", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-mca-15-36-310.md" }, { "url": "https://mca.legmt.gov/bills/mca/title_0150/chapter_0060/part_0010/section_0380/0150-0060-0010-0380.html", "publisher": "Montana Legislature (Montana Code Annotated 2025)", "type": "official_statute", "pinpoint": "MCA 15-6-138(1)(c)", "accessed": "2026-10-01", "local_copy": "sources/sev-mt-mca-15-6-138.md" } ], "confidence": "high", "open_questions": [ "The Department of Revenue applies a $30 quarterly price condition to post-1999 stripper well rates that does not appear in MCA 15-36-304 as read; its statutory basis was not traced.", "No source read says whether oil and gas mineral interests themselves are assessed for local property tax in Montana.", "On October 1, 2026 the Department's pages still pointed to the 2nd quarter 2026 incentive letter; a 3rd quarter 2026 letter was not found." ], "evidence": [ { "file": "sources/sev-mt-mca-15-36-302.md", "quote": "to replace all net proceeds taxes, severance taxes, privilege and license taxes, and other extraction taxes on oil and natural gas production with a single production tax based on the type of well and type of production", "supports": "levy_name" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "The total of the privilege and license tax and the tax for the oil and gas natural resource distribution account established in 90-6-1001(1) is 0.3%.", "supports": "levy_name" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Oil Production Tax Rates (effective Jan 1, 2024)", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Primary Recovery Production First 12 months of production 0.80% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Primary Recovery Production Pre-1999 wells after incentive period 12.80% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Primary Recovery Production Post-1999 wells after incentive period 9.30% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Pre-1999 stripper oil 9.30% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Post-1999: First 10 barrels of stripper oilAverage quarterly sales price reported for all Montana Oil < $30 per barrel 5.30% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Over 10 barrels of stripper oil Average quarterly sales price reported for all Montana oil < $30 per barrel 9.30% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Pre-1999 Stripper Well Exemption Average quarterly sales price reported for all Montana oil < $54 per barrel 0.80% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Pre-1999 Stripper Well Bonus Average quarterly sales price reported for all Montana oil ≥ $54 per barrel 5.30% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Horizontally Drilled Post-1999 wells first 18 months 0.80% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "New or expanded secondary recovery production 8.80% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "New or expanded tertiary production 6.10% 15.10%", "supports": "oil_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "(A) pre-1999 wells 12.5% 14.8%", "supports": "oil_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Natural Gas Production Tax Rates (effective Jan 1, 2024)", "supports": "gas_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Primary Recovery Production Pre-1999 wells after incentive period 15.10% 15.10%", "supports": "gas_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Stripper Wells Averaging < 60 MCF per Day Pre-1999 wells 11.30% 15.10%", "supports": "gas_rate" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Horizontally Completed Well Production First 18 months of qualifying production 0.80% 15.10%", "supports": "gas_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "Natural gas is taxed on the gross taxable value of production based on the type of well and type of production according to the following schedule for working interest and nonworking interest owners", "supports": "gas_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "(a) (i) first 12 months of qualifying production 0.5% 14.8%", "supports": "gas_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "(A) pre-1999 wells 14.8% 14.8%", "supports": "gas_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "(B) post-1999 wells 9% 14.8%", "supports": "gas_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "(b) stripper natural gas pre-1999 wells 11% 14.8%", "supports": "gas_rate" }, { "file": "sources/sev-mt-mca-15-36-305.md", "quote": "the total number of barrels or cubic feet of oil or natural gas produced and sold each month at the average value at the mouth of the well", "supports": "base" }, { "file": "sources/sev-mt-mca-15-36-305.md", "quote": "a fee of up to 25 cents a barrel paid to the operator or producer to administer royalty payments", "supports": "base" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Gross Value = (Total Barrels - Barrels Used in Operation) x Average Wellhead Value", "supports": "base" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "Any interest in production owned by the state or a local government is exempt from taxation under this section.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Tribal royalties from on-reservation oil production leased under the Indian Mineral Leasing Act of 1938.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-mca-15-36-309.md", "quote": "the United States, the state of Montana, or a county or municipal government in Montana.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "only if the average price reported and received by the producer for Montana oil marketed during a calendar quarter is less than $54", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "The average price for the quarter ending June 30, 2026 is $95.6497.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-mca-15-6-138.md", "quote": "(c) for oil and gas production, all: (i) machinery; (ii) fixtures; (iii) equipment, including flow lines and gathering lines, pumping units, oil field storage tanks", "supports": "ad_valorem_note" }, { "file": "sources/sev-mt-dor-oil-incentives-q2-2026.md", "quote": "The availability of oil incentives does not affect the non-working interest owner, or royalty, tax rate of 15.10%.", "supports": "royalty_owner_note" }, { "file": "sources/sev-mt-mca-15-36-310.md", "quote": "Each operator required to pay the oil and natural gas production tax under this part shall pay the tax in full for the operator's own account and for the account of each of the other owners", "supports": "royalty_owner_note" }, { "file": "sources/sev-mt-mca-15-36-310.md", "quote": "Unless otherwise provided in a contract or lease, the pro rata share of any royalty owner or owners must be deducted from any settlements under the lease", "supports": "royalty_owner_note" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "Montana Code Annotated 2025 TITLE 15. TAXATION CHAPTER 36. OIL AND GAS PRODUCTION TAX", "supports": "effective_or_as_of" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Please see the Second Quarter 2026 Incentive Letter for more information about the current oil incentives.", "supports": "effective_or_as_of" }, { "file": "sources/sev-mt-dor-oil-incentives-q2-2026.md", "quote": "All incentives are the same as for the prior quarter.", "supports": "effective_or_as_of" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "approved by the board of oil and gas conservation between March 23, 2017 and February 18, 2019, the average price for a barrel of west Texas intermediate crude oil must be less than $54 a barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Since the average price is not less than $54, this incentive is not available for this quarter.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-dor-oil-natural-gas-production-tax.md", "quote": "Stripper Well Exemption or Bonus (Averaging ≤ 3 barrels per day)", "supports": "oil_rate" }, { "file": "sources/sev-mt-mca-15-36-304.md", "quote": "The tax rates imposed under subsections (2) and (5) on working interest owners and nonworking interest owners must be adjusted to include the privilege and license tax adopted by the board of oil and gas conservation", "supports": "levy_name" }, { "file": "sources/sev-mt-mca-15-36-309.md", "quote": "Exempt from taxation are royalties received by:", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mt-mca-15-36-309.md", "quote": "the United States as trustee for individual Indians; and", "supports": "key_exemptions_or_reduced_rates" } ] }, { "abbr": "KS", "state": "Kansas", "levy_name": "Mineral severance tax, an excise tax on the severance and production of coal, oil or gas (K.S.A. 79-4217)", "oil_rate": "8% of gross value (K.S.A. 79-4217(a)), less a credit of 3.67% of gross value for taxpayers liable for ad valorem property tax on the oil property (K.S.A. 79-4219(a)).", "gas_rate": "8% of gross value (K.S.A. 79-4217(a)), less a credit of 3.67% of gross value for fiscal years from July 1, 1996 onward for taxpayers liable for ad valorem property tax on the gas property (K.S.A. 79-4219(b)).", "base": "Gross value: the sale price of the oil or gas at the time of removal from the lease or production unit; when there is no cash sale at removal or the price is not a true market price, the director sets value from cash prices paid for like oil or gas nearby (K.S.A. 79-4216(d)).", "key_exemptions_or_reduced_rates": [ "Oil from leases averaging 5 barrels or less per producing well per day; for wells 2,000 feet or deeper, 6 barrels or less, rising step by step to 10 barrels as the oil price falls to $13 or less (K.S.A. 79-4217(b)(2)(A), (B)).", "Gas from a well whose average daily production has a gross value of not more than $87 per day (K.S.A. 79-4217(b)(1)(D)).", "Oil from a lease or production unit whose production results from a tertiary recovery process (K.S.A. 79-4217(b)(2)(C)).", "Oil from a well in a pool first producing on or after July 1, 2012 that averages no more than 50 barrels per day in its first 6 months is exempt for 24 months (K.S.A. 79-4217(b)(5)).", "Incremental production from production enhancement projects begun on or after July 1, 1998 is exempt for 7 years, except in the 12 months after a year when the average Kansas wellhead price exceeded $20 per barrel for oil or $2.50 per mcf for gas (K.S.A. 79-4217(b)(7)).", "Gas injected for lifting oil, recycling or repressuring, used as lease fuel, lawfully vented or flared, or used for domestic or agricultural purposes on the lease is exempt (K.S.A. 79-4217(b)(1))." ], "ad_valorem_note": "Yes, in addition. The severance tax is in addition to all property taxes imposed by the state or its subdivisions (K.S.A. 79-4218); oil and gas leases and producing wells, with their equipment, are personal property assessed and taxed as such (K.S.A. 79-329), and taxpayers liable for that property tax receive the 3.67% credit against the severance tax (K.S.A. 79-4219).", "royalty_owner_note": "The tax is borne ratably by all producers, a term that includes royalty owners, and the first purchaser collects it by deducting it from payments to the operator or producers unless the operator elects to remit (K.S.A. 79-4216(i), 79-4217(a), 79-4220(a)).", "effective_or_as_of": "K.S.A. 79-4217 as last amended by L. 2013, ch. 87 and K.S.A. 79-4219 as last amended by L. 1994, ch. 304, read on ksrevisor.gov October 1, 2026; no 2026 amendment to these sections appears in the Revisor's 2026 composite list dated August 13, 2026.", "source": { "url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_042_0017.html", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "K.S.A. 79-4217(a), (b)", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-ksa-79-4217.md" }, "additional_sources": [ { "url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_042_0016.html", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "K.S.A. 79-4216(d), (i)", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-ksa-79-4216.md" }, { "url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_042_0018.html", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "K.S.A. 79-4218", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-ksa-79-4218.md" }, { "url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_042_0019.html", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "K.S.A. 79-4219(a), (b)", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-ksa-79-4219.md" }, { "url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_042_0020.html", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "K.S.A. 79-4220(a)(1)", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-ksa-79-4220.md" }, { "url": "https://www.ksrevisor.gov/statutes/chapters/ch79/079_003_0029.html", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "K.S.A. 79-329", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-ksa-79-329.md" }, { "url": "https://www.ksrevisor.gov/rpts/2026NewAmendsAndRepealsKSAOrder.pdf", "publisher": "Kansas Office of Revisor of Statutes", "type": "official_statute", "pinpoint": "2026 Composite List (K.S.A. Order), pages 52 to 54", "accessed": "2026-10-01", "local_copy": "sources/sev-ks-revisor-2026-composite-list.md" } ], "confidence": "high", "open_questions": [ "Kansas Department of Revenue publications were not read because ksrevenue.gov was not available when AMR checked; values rest on the statutes.", "Any Kansas Corporation Commission conservation assessment on oil and gas production was not reviewed." ], "evidence": [ { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "There is hereby imposed an excise tax upon the severance and production of coal, oil or gas from the earth or water in this state for sale, transport, storage, profit or commercial use", "supports": "levy_name" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "The rate of such tax shall be 8% of the gross value of all oil or gas severed from the earth or water in this state and subject to the tax imposed under this act.", "supports": "oil_rate, gas_rate" }, { "file": "sources/sev-ks-ksa-79-4219.md", "quote": "a credit against the tax levied under K.S.A. 79-4217, and amendments thereto, upon the severance and production of oil, in an amount equal to 3.67% of the gross value of oil severed and taxable under this act", "supports": "oil_rate, ad_valorem_note" }, { "file": "sources/sev-ks-ksa-79-4219.md", "quote": "3.67% of the gross value of gas severed and taxable under this act, and in which the taxpayer has a beneficial interest for the fiscal year commencing on July 1, 1996, and all fiscal years thereafter.", "supports": "gas_rate" }, { "file": "sources/sev-ks-ksa-79-4216.md", "quote": "\"Gross value\" means the sale price of oil or gas at the time of removal of the oil or gas from the lease or production unit", "supports": "base" }, { "file": "sources/sev-ks-ksa-79-4216.md", "quote": "then the director shall determine the value of the oil or gas subject to tax based on the cash price paid to one or more producers for the oil or gas", "supports": "base" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "From a lease or production unit whose average daily production is five barrels or less per producing well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "the producing well or wells upon which have a completion depth of 2,000 feet or more, and whose average daily production is six barrels or less per producing well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "if the price of oil as determined pursuant to subsection (d) is $13 or less, whose average daily production is 10 barrels or less per producing well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "severed from a well having an average daily production during a calendar month having a gross value of not more than $87 per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "from a lease or production unit, whose production results from a tertiary recovery process.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "does not exceed 50 barrels per day, and continuing for a period of 24 months from the month in which oil was first produced from such pool", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "The incremental severance and production of oil or gas which results from a production enhancement project begun on or after July 1, 1998, shall be exempt for a period of seven years from the start-up date of such project.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "the weighted average price of Kansas oil at the wellhead has exceeded $20.00 per barrel", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "the weighted average price of Kansas gas at the wellhead has exceeded $2.50 per Mcf", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "Injected into the earth for the purpose of lifting oil, recycling or repressuring; (B) used for fuel in connection with the operation and development for, or production of, oil or gas", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "used or consumed for domestic or agricultural purposes on the lease or production unit from which it is severed", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ks-ksa-79-4218.md", "quote": "The taxes imposed by this act shall be in addition to all taxes imposed upon real or personal property by the state of Kansas or by any taxing subdivision thereof.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ks-ksa-79-329.md", "quote": "all oil and gas leases and all oil and gas wells, producing or capable of producing oil or gas in paying quantities, together with all casing, tubing or other material therein", "supports": "ad_valorem_note" }, { "file": "sources/sev-ks-ksa-79-329.md", "quote": "are hereby declared to be personal property and shall be assessed and taxed as such.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ks-ksa-79-4219.md", "quote": "There shall be allowed to each taxpayer who is liable for ad valorem property taxes upon oil property as defined by K.S.A. 79-329", "supports": "ad_valorem_note" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "Such tax shall be borne ratably by all persons within the term \"producer\" as such term is defined in K.S.A. 79-4216", "supports": "royalty_owner_note" }, { "file": "sources/sev-ks-ksa-79-4216.md", "quote": "whether severed by such person or some other person on their behalf, either by lease, contract or otherwise, including a royalty owner.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ks-ksa-79-4220.md", "quote": "by deducting and withholding such amount from any payments made by such purchaser to the operator, or such producers where payment is made to same directly", "supports": "royalty_owner_note" }, { "file": "sources/sev-ks-ksa-79-4220.md", "quote": "unless the operator of the lease or production unit, upon written notice to the first purchaser and the director, elects to remit the tax.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ks-ksa-79-4217.md", "quote": "L. 2004, ch. 173, § 18; L. 2012, ch. 135, § 29; L. 2013, ch. 87, § 7; April 25.", "supports": "effective_or_as_of" }, { "file": "sources/sev-ks-ksa-79-4219.md", "quote": "L. 1983, ch. 313, § 4; L. 1994, ch. 304, § 1; July 1.", "supports": "effective_or_as_of" }, { "file": "sources/sev-ks-revisor-2026-composite-list.md", "quote": "2026 COMPOSITE LISTING OF NEW, AMENDED & REPEALED STATUTES (K.S.A. Order) August 13, 2026", "supports": "effective_or_as_of" } ] }, { "abbr": "UT", "state": "Utah", "levy_name": "Oil and gas severance tax (Utah Code 59-5-102); oil and gas conservation fee (Utah Code 40-6-14); both collected by the State Tax Commission", "oil_rate": "Severance tax of 3% of taxable value up to and including the first $13 per barrel and 5% of the value from $13.01 per barrel; natural gas liquids 4% of taxable value; plus the conservation fee of 0.2% (0.002) of value.", "gas_rate": "Severance tax of 3% of taxable value up to and including the first $1.50 per Mcf and 5% of the value from $1.51 per Mcf; plus the conservation fee of 0.2% of value.", "base": "Taxable value of each owner's interest in oil or gas produced and saved, sold, or transported from the field where it was produced; working, royalty and other interests are all taxed; oil or gas shipped out of state counts as sold, and stockpiled product is taxed when sold, transported or delivered, or after two years.", "key_exemptions_or_reduced_rates": [ "No tax on stripper well production (oil wells under 20 barrels a day and gas wells under 60 Mcf a day, per the Division), unless the exemption would prevent the tax from being deductible for federal tax purposes.", "No tax on the first 12 months of production from wildcat wells or the first 6 months from development wells started after January 1, 1990.", "Interests of the United States, the state or its political subdivisions, and Indians or Indian tribes in production from land under United States jurisdiction are not taxed.", "The tax rate is cut by 50% on incremental production from an enhanced recovery project.", "Recompletion or workover credit of 20% of expenses, capped at $30,000 per well per calendar year (2021 statute text and Division summary)." ], "ad_valorem_note": "Yes. The Property Tax Division of the State Tax Commission assesses the fair market value of oil and gas properties each year as of January 1 using a discounted cash flow model, and each county sets the tax rate (Utah Code 59-2-201). The 2021 statute text says the severance tax is in addition to all other taxes provided by law.", "royalty_owner_note": "Royalty owners owe severance tax on their share in proportion to their interest; under the 2021 statute text the producer reports and pays on behalf of each owner and deducts the tax from amounts due to the other owners.", "effective_or_as_of": "Statute text read is the version effective July 1, 2021 (Amended by Chapter 280, 2021 General Session), from an archive snapshot of April 3, 2025; the Division of Oil, Gas and Mining summary is undated and was read October 1, 2026.", "source": { "url": "https://ogm.utah.gov/og-production-tax-description-summary/", "publisher": "Utah Division of Oil, Gas and Mining", "type": "official_agency", "pinpoint": "Utah Oil and Gas Production Taxes Summary, sections A (Conservation Fee), B (Severance Tax), C (Property Tax)", "accessed": "2026-10-01", "local_copy": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md" }, "additional_sources": [ { "url": "https://le.utah.gov/xcode/Title59/Chapter5/C59-5-S102_2021050520210701.html", "publisher": "Utah State Legislature", "type": "official_statute", "pinpoint": "Utah Code 59-5-102(2), (4), (5), (6), (7), (9), (10), (11), (12), (13), version effective July 1, 2021", "accessed": "2026-10-01", "local_copy": "sources/sev-ut-code-59-5-102-version-2021.md", "via": "Internet Archive snapshot April 3, 2025" }, { "url": "https://le.utah.gov/xcode/Title59/Chapter5/59-5-S102.html", "publisher": "Utah State Legislature", "type": "official_statute", "pinpoint": "Section landing page script naming the default version file", "accessed": "2026-10-01", "local_copy": "sources/sev-ut-code-59-5-102-current-page.md", "via": "Internet Archive snapshot September 7, 2026" } ], "confidence": "medium", "open_questions": [ "The current text of 59-5-102 could not be read. The le.utah.gov page captured September 7, 2026 names a newer default version file, C59-5-S102_2025010120250507, which the archive does not hold, and le.utah.gov was not available when AMR checked. Rates are confirmed only in the 2021 version and the undated Division summary.", "tax.utah.gov was not available when AMR checked, so no State Tax Commission rate page, form or instruction was read.", "Utah Code 40-6-14 (conservation fee) and 59-2-201 (property assessment) were not read directly; both come from the Division summary.", "The stripper well thresholds (20 barrels and 60 Mcf a day) come from the Division summary; the statutory definition in 59-5-101 was not read." ], "evidence": [ { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "The conservation fee rate is two-tenths of one percent (.002) of the value of oil and gas produced and saved, sold, or transported from the field in Utah", "supports": "oil_rate" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "The State Tax Commission administers the collection of the conservation Statutory Reference: § 40-6-14.", "supports": "levy_name" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "The State Tax Commission administers the collection of the severance Statutory Reference: § 59-5-102.", "supports": "levy_name" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "3% of the value of the oil up to and including the first $13 per barrel for oil; and", "supports": "oil_rate" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "5% of the value of the oil from $13.01 and above per barrel for", "supports": "oil_rate" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "3% of the taxable value of the oil up to and including the first $13 per barrel for oil; and", "supports": "oil_rate" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "the severance tax rate for natural gas liquids is 4% of the taxable value of the natural gas liquids.", "supports": "oil_rate" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "3% of the value up to and including the first $1.50 per MCF for gas; and", "supports": "gas_rate" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "5% of the value from $1.51 and above per MCF for", "supports": "gas_rate" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "5% of the taxable value of the natural gas from $1.51 and above per MCF for gas; and", "supports": "gas_rate" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "a person owning an interest in oil or gas produced from a well in the state, including a working interest, royalty interest, payment out of production, or any other interest", "supports": "base" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "shall pay to the state a severance tax on the owner's interest in the taxable value of the oil or gas", "supports": "base" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "If oil or gas is stockpiled for more than two years, the oil or gas is subject to the tax imposed by this section.", "supports": "base" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "stripper wells, with oil wells at less than 20 BOPD and gas wells at less than 60 MCFD;", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "oil or gas produced from stripper wells, unless the exemption prevents the severance tax from being treated as a deduction for federal tax purposes;", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "oil or gas produced in the first 12 months of production for wildcat wells started after January 1, 1990; and", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "the first six months of production for development", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "the United States in oil or gas or in the proceeds of the production of oil or gas;", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "the state or a political subdivision of the state in oil or gas or in the proceeds of the production of oil or gas;", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "an Indian or Indian tribe as defined in Section 9-9-101 in oil or gas or in the proceeds of the production of oil or gas produced from land under the jurisdiction of the United States", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "A 50% reduction in the tax rate is imposed upon the incremental production achieved from an enhanced recovery project.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "The tax credit for each recompletion or workover may not exceed $30,000 per well during each calendar year.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "The Property Tax Division of the State Tax Commission assesses the fair market value of oil and gas properties by May 1st of each year, as valued on January 1st.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ut-ogm-oil-gas-production-taxes-summary.md", "quote": "The actual tax rate is established by each respective county, and thus varies by county. Statutory Reference: 59-2-201.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "in addition to all other taxes provided by law; and", "supports": "ad_valorem_note" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "each owner is liable for the tax in proportion to the owner's interest in the production or in the proceeds of the production.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "Each producer shall deduct the tax imposed by this section from the amounts due to other owners for the production or the proceeds of the production.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "Effective 7/1/2021 59-5-102. Definitions -- Severance tax -- Computation -- Rate", "supports": "effective_or_as_of" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "Amended by Chapter 280, 2021 General Session", "supports": "effective_or_as_of" }, { "file": "sources/sev-ut-code-59-5-102-current-page.md", "quote": "Utah Code Section 59-5-102 var versionDefault=\"C59-5-S102_2025010120250507\";", "supports": "open_questions" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "the shipment constitutes a sale; and", "supports": "base" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "The maximum tax credit per taxpayer per well in a calendar year is the lesser of:", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ut-code-59-5-102-version-2021.md", "quote": "20% of the taxpayer's payment of expenses of a well recompletion or workover during the calendar year; and", "supports": "key_exemptions_or_reduced_rates" } ] }, { "abbr": "CA", "state": "California", "levy_name": "No statewide severance tax on oil and gas production; annual oil and gas production assessment (charge) under Public Resources Code Division 3, Chapter 1, Article 7 (ss. 3400 to 3434), set each year by the Department of Conservation, Geologic Energy Management Division (CalGEM)", "oil_rate": "Uniform charge per barrel set each June for the following fiscal year. Published rate for fiscal year 2025/26: $1.279550900 per equivalent barrel (one barrel of oil or 10 Mcf of gas). Fiscal year 2024/25 was $1.2156082. The fiscal year 2026/27 rate set in June 2026 was not read.", "gas_rate": "The same uniform charge per 10,000 cubic feet (10 Mcf) of gas: $1.279550900 for fiscal year 2025/26, counting 10 Mcf as one equivalent barrel. The fiscal year 2026/27 rate was not read.", "base": "Barrels of oil and each 10,000 cubic feet of gas produced in the preceding calendar year, excluding gas used for recycling or otherwise in oil producing operations. The rate is based on CalGEM's estimated budget for the coming fiscal year and the assessable production of the prior calendar year; for 2025/26 the page shows an assessment amount of $142,391,556.40 divided by production of 104,695,509 equivalent barrels.", "key_exemptions_or_reduced_rates": [ "No charge is levied where the assessment on a person's oil and gas production is less than $10.", "Gas used for recycling or otherwise in oil producing operations is excluded from the gas charge." ], "ad_valorem_note": "Yes. CalGEM states that ad valorem (property) taxes apply, administered by each county, and Board of Equalization Property Tax Rule 468 treats the right to remove petroleum and natural gas as a taxable real property interest valued from proved reserves. PRC 3404 says the assessment is in addition to any other charges, taxes or assessments.", "royalty_owner_note": "The charge is imposed on the operator and on owners of royalty or other interests in proportion to their fractional interests; the operator pays the whole charge and withholds each owner's share from amounts otherwise payable to royalty and other interest owners (PRC 3402 and 3403).", "effective_or_as_of": "Fiscal year 2025/26 rate as shown on the CalGEM Assessment Process page in an archive snapshot of January 24, 2026; statutes as displayed on leginfo.legislature.ca.gov on October 1, 2026; Rule 468 as amended and effective June 6, 2001.", "source": { "url": "https://www.conservation.ca.gov/calgem/for_operators/Pages/Assessments.aspx", "publisher": "California Department of Conservation, Geologic Energy Management Division (CalGEM)", "type": "official_agency", "pinpoint": "Assessment Process page: Oil and Gas Assessment Rate per Fiscal Year and the explanatory paragraphs", "accessed": "2026-10-01", "local_copy": "sources/sev-ca-calgem-assessment-process.md", "via": "Internet Archive snapshot January 24, 2026" }, "additional_sources": [ { "url": "https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=PRC&division=3.&title=&part=&chapter=1.&article=7.", "publisher": "California Legislature, Legislative Counsel (Public Resources Code)", "type": "official_statute", "pinpoint": "PRC 3402, 3403, 3404 and 3420(a)(1)", "accessed": "2026-10-01", "local_copy": "sources/sev-ca-prc-div3-ch1-art7.md" }, { "url": "https://boe.ca.gov/proptaxes/pdf/rules/Rule468.pdf", "publisher": "California State Board of Equalization", "type": "official_agency", "pinpoint": "Property Tax Rule 468(a) and (b)", "accessed": "2026-10-01", "local_copy": "sources/sev-ca-boe-property-tax-rule-468.md" } ], "confidence": "medium", "open_questions": [ "The fiscal year 2026/27 rate, set in June 2026 (CalGEM Notice to Operators on the 2025 Notice of Assessment, June 2026), could not be read: conservation.ca.gov was not available when AMR checked and the archive holds no copy. The 2025/26 rate shown is the latest one read.", "No source read gives county property tax rates or says whether counties assess royalty interests separately from working interests." ], "evidence": [ { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "There is no statewide severance tax on oil and gas production in California.", "supports": "levy_name" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "There is a small statewide assessment on oil and gas produced in California.", "supports": "levy_name" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "and is levied pursuant to Article 7, Division 3, of the Public Resources Code.", "supports": "levy_name" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "Oil and Gas Assessment Rate per Fiscal Year (rate per equivalent BBL or 10 MCF of Gas): 2025/26: $1.279550900", "supports": "oil_rate" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "2024/25: $1.2156082 (Assessment Amount [$153,804,122] / Production [equiv. bbls.: 126,524,420])", "supports": "oil_rate" }, { "file": "sources/sev-ca-prc-div3-ch1-art7.md", "quote": "a charge which shall be payable to the Treasurer and which shall be computed at a uniform rate per barrel of oil produced from the well for the preceding calendar year", "supports": "oil_rate" }, { "file": "sources/sev-ca-prc-div3-ch1-art7.md", "quote": "other than gas which is used for recycling or otherwise in oil-producing operations, and which shall be computed at a uniform rate per ten thousand cubic feet", "supports": "gas_rate" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "This rate is then imposed on each barrel of oil and each 10,000 cubic feet of natural gas produced.", "supports": "gas_rate" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "The assessment rate is established in June of each year, and is based on CalGEM's estimated budget for the ensuing fiscal year and the total amount of assessable oil and gas produced during the prior calendar year.", "supports": "base" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "2025/26: $1.279550900 (Assessment Amount [$142,391,556.40] / Production [equiv.bbls.: 104,695,509])", "supports": "base" }, { "file": "sources/sev-ca-prc-div3-ch1-art7.md", "quote": "No charges shall be levied for assessments on oil and gas production of less than ten dollars ($10).", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ca-calgem-assessment-process.md", "quote": "There are ad valorem (property) taxes in California, administered by each county.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ca-boe-property-tax-rule-468.md", "quote": "The right to remove petroleum and natural gas from the earth is a taxable real property interest.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ca-boe-property-tax-rule-468.md", "quote": "The market value of an oil and gas mineral property interest is determined by estimating the value of the volumes of proved reserves.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ca-prc-div3-ch1-art7.md", "quote": "The charges authorized by this article are in addition to any and all charges, taxes, assessments, or licenses of any kind or nature paid by or upon the properties assessed hereunder.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ca-prc-div3-ch1-art7.md", "quote": "There shall annually be imposed upon the person operating each oil well in this state, or owning royalty or other interests in respect to the production from the well", "supports": "royalty_owner_note" }, { "file": "sources/sev-ca-prc-div3-ch1-art7.md", "quote": "but the whole of the charge shall be payable by the operator, who shall withhold their respective proportionate shares of the charge from the amounts otherwise payable or deliverable to the owners of royalty or other interests", "supports": "royalty_owner_note" }, { "file": "sources/sev-ca-boe-property-tax-rule-468.md", "quote": "Amended and effective June 6, 2001.", "supports": "effective_or_as_of" } ] }, { "abbr": "AR", "state": "Arkansas", "levy_name": "Oil severance tax with two additional per barrel taxes on oil (Ark. Code 26-58-111(6), 26-58-301(a)(1) and 26-58-302(a)(1)); natural gas severance tax (Ark. Code 26-58-111(5), administered under Rule 2008-4)", "oil_rate": "4% of market value at the time of severance when production averages 10 barrels or less per well per day, 5% when it averages more than 10 barrels; plus $0.005 (5 mills) per barrel and $0.02 per barrel.", "gas_rate": "Percent of market value by Oil and Gas Commission well classification: 1.5% on new discovery gas for the first 24 consecutive months; 1.5% on high cost gas for the first 36 consecutive months, extendable until payout for at most 12 more months; 1.25% on marginal gas; 5% on all other gas and on high cost gas after the cost recovery period.", "base": "Oil: market value at the time of severance. Gas: market value, meaning the producer's actual cash receipts from the sale to the first purchaser less the producer's actual costs of dehydrating, treating, compressing and delivering the gas to the first purchaser.", "key_exemptions_or_reduced_rates": [ "Oil from wells averaging 10 barrels a day or less is taxed at 4% instead of 5%.", "New discovery gas (conventional gas wells) is taxed at 1.5% for the first 24 consecutive months of production.", "High cost gas (shale wells, completions deeper than 12,500 feet, tight gas, geopressured brine, coal seam gas) is taxed at 1.5% for 36 months, extendable until payout for at most 12 more months.", "Marginal gas is taxed at 1.25%: conventional wells unable to produce more than 250 Mcf a day, and high cost wells unable to produce more than 100 Mcf a day.", "Oil producers that dispose of salt water through an approved underground system get a severance tax credit, capped at $370,000 a year for all producers together." ], "ad_valorem_note": "Yes. The Assessment Coordination Division states that producing mineral interests are assessed for ad valorem purposes at market value and reappraised annually, while nonproducing mineral rights are given zero value. Working interests are billed to the operator or producer and royalty and overriding interests to each individual owner.", "royalty_owner_note": "For natural gas, the royalty owner's share of severance tax is calculated the same way as the producer's and the operator deducts it from royalty payments; for oil, the Department says the tax is collected from either the producer or the purchaser, and no source read addresses the royalty share.", "effective_or_as_of": "Gas rates effective on and after January 1, 2009 under Rule 2008-4, which the Department's natural gas page lists with a posting date of September 18, 2024; oil rates from the Department's oil tax page read October 1, 2026; 2026 mineral appraisal guidelines.", "source": { "url": "https://www.dfa.arkansas.gov/wp-content/uploads/et2008_4.pdf", "publisher": "Arkansas Department of Finance and Administration", "type": "official_agency", "pinpoint": "Rule 2008-4, NG-1, NG-3.G, NG-5, NG-6.A, NG-7.B and C, NG-9, NG-10.G and H", "accessed": "2026-10-01", "local_copy": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md" }, "additional_sources": [ { "url": "https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/miscellaneous-tax/arkansas-miscellaneous-tax-laws/oil/", "publisher": "Arkansas Department of Finance and Administration", "type": "official_agency", "pinpoint": "Oil Tax page, rate list and salt water disposal credit", "accessed": "2026-10-01", "local_copy": "sources/sev-ar-dfa-oil-tax.md" }, { "url": "https://www.dfa.arkansas.gov/office/taxes/excise-tax-administration/miscellaneous-tax/arkansas-miscellaneous-tax-laws/natural-gas/", "publisher": "Arkansas Department of Finance and Administration", "type": "official_agency", "pinpoint": "Natural Gas Tax page, description and rules list", "accessed": "2026-10-01", "local_copy": "sources/sev-ar-dfa-natural-gas-tax.md" }, { "url": "https://www.dfa.arkansas.gov/office/arkansas-assessment-coordination-division/real-property/mineral-real-estate/", "publisher": "Arkansas Department of Finance and Administration, Assessment Coordination Division", "type": "official_agency", "pinpoint": "Mineral Real Estate page", "accessed": "2026-10-01", "local_copy": "sources/sev-ar-acd-mineral-real-estate.md" }, { "url": "https://www.dfa.arkansas.gov/wp-content/uploads/2026_guidelines-for-the-mass-appraisal-of-minerals.pdf", "publisher": "Arkansas Department of Finance and Administration, Assessment Coordination Division", "type": "official_agency", "pinpoint": "2026 Guidelines for the Mass Appraisal of Mineral Real Property and Personal Property, pages 1 to 4", "accessed": "2026-10-01", "local_copy": "sources/sev-ar-acd-mineral-guidelines-2026.md" } ], "confidence": "high", "open_questions": [ "Ark. Code 26-58-111, 26-58-301 and 26-58-302 were not read directly; the official code is published through a commercial host that was not tried. Rates come from Department of Finance and Administration pages and Rule 2008-4.", "Whether the Oil and Gas Commission imposes any separate per unit assessment or fee on oil or gas production was not checked.", "No source read states whether oil royalty owners bear a share of the oil severance tax." ], "evidence": [ { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "Tax is levied and collected from either the producer or purchaser of oil in the State of Arkansas at the time of severance.", "supports": "levy_name" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "4% of the market value at the time of severance, when production averages 10 barrels or less per well per day.", "supports": "oil_rate" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "5% of the market value at the time of severance, when production averages more than 10 barrels per well per day.", "supports": "oil_rate" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "$0.005 (5 mils) per barrel of oil produced in this state.", "supports": "oil_rate" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "$0.02 per barrel of oil produced in this state.", "supports": "oil_rate" }, { "file": "sources/sev-ar-dfa-natural-gas-tax.md", "quote": "The applicable tax rates of 1.25%, 1.5%, and 5.0% are dependent on the well classification by the Arkansas Oil and Gas Commission.", "supports": "gas_rate" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "One and one-half percent (1.5%) on new discovery gas for the time period provided in NG-7.B;", "supports": "gas_rate" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "One and one-half percent (1.5%) on high-cost gas for the time periods provided in NG-7.C;", "supports": "gas_rate" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "One and one-quarter percent (1.25%) on marginal gas;", "supports": "gas_rate" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Five percent (5%) on all natural gas which is not defined as new discovery gas or marginal gas; and", "supports": "gas_rate" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Five percent (5%) on high-cost gas following the cost recovery period(s) of NG-7.C., as applicable.", "supports": "gas_rate" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "shall apply to the first twenty-four (24) consecutive calendar months beginning on the date of first production from the new discovery gas well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "shall apply to the first thirty-six (36) consecutive calendar months beginning on the date of first production from the high-cost gas well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Twelve (12) months following the expiration of the original thirty- six (36) month period.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Produced from any gas well completed within a shale formation", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "located at a depth of more than 12,500 feet below the surface of the earth", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "incapable of producing more than 250 Mcf per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "incapable of producing more than 100 Mcf per day", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "The total severance tax credits allowed all oil producers during any calendar year by the director shall not exceed $370,000.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "“Market Value” means the producer’s actual cash receipts from the sale of natural gas to the first purchaser less the actual costs to the producer of dehydrating, treating, compressing, and delivering the gas to the first purchaser.", "supports": "base" }, { "file": "sources/sev-ar-dfa-natural-gas-tax.md", "quote": "Tax is collected from the Operator/Producer on the market value of gas sold.", "supports": "base" }, { "file": "sources/sev-ar-acd-mineral-real-estate.md", "quote": "Producing Mineral Interests are assessed for Ad Valorem purposes at Market Value in regards to Arkansas Law, Rules and Guidelines", "supports": "ad_valorem_note" }, { "file": "sources/sev-ar-acd-mineral-guidelines-2026.md", "quote": "Producing mineral interests shall be reappraised annually for ad valorem tax purposes.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ar-acd-mineral-guidelines-2026.md", "quote": "a nonproducing mineral right has zero (0) value for the purpose of property tax assessment", "supports": "ad_valorem_note" }, { "file": "sources/sev-ar-acd-mineral-guidelines-2026.md", "quote": "In the case of the Working Interest, assessments are made in the name of, and taxes billed to the Operator/Producer.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ar-acd-mineral-guidelines-2026.md", "quote": "With Royalty and Overriding Interests, assessments are made, and taxes billed to each individual owner.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "The portion of the severance tax that is required to be deducted from the royalty owner or other interest shall be calculated in the same manner as the portion of the severance tax borne by the producer.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "is authorized, empowered, and required to deduct the amount of the severance tax in respect thereto from any such royalty or other interest before making the direct payment.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "On and after January 1, 2009, the severance tax rate levied on natural gas production is the following percent of market value of the natural gas severed within the State of Arkansas:", "supports": "effective_or_as_of" }, { "file": "sources/sev-ar-dfa-natural-gas-tax.md", "quote": "2008-4 Natural Gas Severance Tax Rules 09/18/2024", "supports": "effective_or_as_of" }, { "file": "sources/sev-ar-acd-mineral-guidelines-2026.md", "quote": "2026 Guidelines for the Mass Appraisal of Mineral Real Property and Personal Property", "supports": "effective_or_as_of" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "shall be allowed a credit on severance taxes due and payable to the State of Arkansas", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Produced from a tight gas formation;", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Produced from geopressured brine; or", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Occluded natural gas produced from coal seams.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "“New Discovery Gas Well” means any conventional gas well that is completed as a well capable of producing gas.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "when production averages 10 barrels or less per well per day. —- §26-58-111(6)(b)", "supports": "levy_name" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "$0.005 (5 mils) per barrel of oil produced in this state. —- §26-58-301(a)(1)", "supports": "levy_name" }, { "file": "sources/sev-ar-dfa-oil-tax.md", "quote": "$0.02 per barrel of oil produced in this state. —- §26-58-302(a)(1)", "supports": "levy_name" }, { "file": "sources/sev-ar-dfa-rule-2008-4-natural-gas-severance.md", "quote": "Source: Ark. Code Ann. § 26-58-111(5).", "supports": "levy_name" } ] }, { "abbr": "AK", "state": "Alaska", "levy_name": "Oil and gas production tax (AS 43.55.011), including a separate tax on landowner royalty interests (AS 43.55.011(i)); oil conservation surcharges under AS 43.55.201 and 43.55.300", "oil_rate": "35% of the annual production tax value of taxable oil produced on and after January 1, 2022, with a minimum tax for leases including land north of 68 degrees North latitude of 4% of gross value at the point of production when the average Alaska North Slope West Coast price exceeds $25 a barrel, stepping down to 0% at $15 or less. Cook Inlet oil is capped at $1 a barrel. Landowner royalty oil is taxed at 5% of gross value. Conservation surcharges add 4 cents per barrel, plus 1 cent per barrel when the Hazardous Release Fund holds less than $50 million.", "gas_rate": "13% of the gross value at the point of production for gas produced on and after January 1, 2022 (a negative gross value counts as zero). Cook Inlet gas, and gas produced outside Cook Inlet and used in the state, are capped by reference to rates of the 12 months ending March 31, 2006. Landowner royalty gas is taxed at 1.667% of gross value.", "base": "Oil: annual production tax value, that is the gross value at the point of production less qualified lease expenditures. Gas: gross value at the point of production. Oil and gas whose ownership is exempt from taxation is excluded, and landowner royalty interests are taxed separately.", "key_exemptions_or_reduced_rates": [ "Cook Inlet sedimentary basin: oil tax capped at $1 a barrel; gas tax capped by reference to the rate for the 12 months ending March 31, 2006.", "Commercial production begun after December 31, 2012 and before January 1, 2027 outside Cook Inlet and south of 68 degrees North latitude: tax capped at 4% of gross value for seven years.", "Gas produced outside Cook Inlet and used in the state: tax per Mcf capped at the Cook Inlet amount.", "Credits listed by the Department of Revenue include the small producer credit and the per taxable barrel credit (AS 43.55.024).", "Oil and gas whose ownership or right is exempt from taxation is excluded from the production tax." ], "ad_valorem_note": "Yes, on oil and gas property. AS 43.56.010 levies an annual state tax of 20 mills on the full and true value of taxable property, defined as real and tangible personal property used primarily in exploration for, production of, or pipeline transportation of gas or unrefined oil, including wells. A municipality may tax the same property at its usual rate, and municipal tax paid by June 30 is credited against the state tax, up to the state amount.", "royalty_owner_note": "Landowner royalty interests (a lessor's royalty under a lease, or a surface owner's royalty) are taxed at 5% for oil and 1.667% for gas of gross value, levied on the producer; for other taxable royalty oil and gas the producer may deduct the tax paid when settling with the royalty owner.", "effective_or_as_of": "Alaska Statutes 2025 as shown on akleg.gov on October 1, 2026; the 35% oil rate applies since January 1, 2014 and the 13% gas rate since January 1, 2022.", "source": { "url": "https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.55.011&secEnd=43.55.011", "publisher": "Alaska State Legislature", "type": "official_statute", "pinpoint": "AS 43.55.011(e)(3), (f)(2), (i), (j), (k), (o), (p)", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-as-43-55-011.md" }, "additional_sources": [ { "url": "https://tax.alaska.gov/programs/programs/index.aspx?60650", "publisher": "Alaska Department of Revenue, Tax Division", "type": "official_agency", "pinpoint": "Oil and Gas Production Tax program page, Historical Overview", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-dor-oil-gas-production-tax.md" }, { "url": "https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.55.020&secEnd=43.55.020", "publisher": "Alaska State Legislature", "type": "official_statute", "pinpoint": "AS 43.55.020(l)", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-as-43-55-020.md" }, { "url": "https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.55.900&secEnd=43.55.900", "publisher": "Alaska State Legislature", "type": "official_statute", "pinpoint": "AS 43.55.900(15)", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-as-43-55-900.md" }, { "url": "https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.56.010&secEnd=43.56.010", "publisher": "Alaska State Legislature", "type": "official_statute", "pinpoint": "AS 43.56.010(a), (b), (d)", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-as-43-56-010.md" }, { "url": "https://www.akleg.gov/basis/statutes.asp?media=print&secStart=43.56.210&secEnd=43.56.210", "publisher": "Alaska State Legislature", "type": "official_statute", "pinpoint": "AS 43.56.210(5)", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-as-43-56-210.md" }, { "url": "https://www.akleg.gov/basis/statutes.asp", "publisher": "Alaska State Legislature", "type": "official_statute", "pinpoint": "Alaska Statutes index page title", "accessed": "2026-10-01", "local_copy": "sources/sev-ak-akleg-statutes-index.md" } ], "confidence": "high", "open_questions": [ "The statutes on akleg.gov are the 2025 edition; amendments from the 2026 session to AS 43.55 or 43.56 were not checked.", "The conservation surcharge sections AS 43.55.201 and 43.55.300 were not read directly; the amounts come from the Department of Revenue page.", "No source read states whether AS 43.56 taxes the value of oil and gas leases or minerals in place; the definition read lists physical property such as wells, lines and equipment." ], "evidence": [ { "file": "sources/sev-ak-as-43-55-011.md", "quote": "(A) oil is equal to the annual production tax value of the taxable oil as calculated under AS 43.55.160(h) multiplied by 35 percent;", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "(3) on and after January 1, 2022, the tax for", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "oil produced on and after January 1, 2022, from leases or properties that include land north of 68 degrees North latitude, may not be less than", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "four percent of the gross value at the point of production when the average price per barrel for Alaska North Slope crude oil", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "during the calendar year for which the tax is due is more than $25;", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "during the calendar year for which the tax is due is $15 or less.", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "the tax levied by (e) of this section may not exceed one dollar a barrel of oil for oil produced from a lease or property in the Cook Inlet sedimentary basin.", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "(1) the tax levied for oil is equal to five percent of the gross value at the point of production of the oil;", "supports": "oil_rate" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "Under AS 43.55.201, the State collects a 1 cent per barrel conservation surcharge on taxable oil produced if there is less than $50 million in the Hazardous Release Fund.", "supports": "oil_rate" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "The State also collects an additional 4 cents per barrel conservation surcharge under AS 43.55.300.", "supports": "oil_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "(B) gas is equal to 13 percent of the gross value at the point of production of the taxable gas;", "supports": "gas_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "if the gross value at the point of production of gas produced from a lease or property is less than zero, that gross value at the point of production is considered zero", "supports": "gas_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "(2) the tax levied for gas is equal to 1.667 percent of the gross value at the point of production of the gas;", "supports": "gas_rate" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "Gas produced from the Cook Inlet area is effectively capped at the rate that was imposed on gas produced from each lease or property during the period April 1, 2005 through March 31, 2006.", "supports": "gas_rate" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "for gas produced from a lease or property outside the Cook Inlet sedimentary basin and used in the state", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "The oil tax is based on the net value of oil, which is the gross value at the point of production, less all qualified lease expenditures.", "supports": "base" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "less any oil and gas the ownership or right to which is exempt from taxation or constitutes a landowner's royalty interest", "supports": "base" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "where that commercial production began after December 31, 2012, and before January 1, 2027", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "the levy of tax under (e) of this section for oil and gas may not exceed four percent of the gross value at the point of production.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "Tax rate for oil produced in Cook Inlet area of Alaska is capped at $1 per barrel.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "AS 43.55.024(c) Small producer credit", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ak-as-43-56-010.md", "quote": "An annual tax of 20 mills is levied each tax year beginning January 1, 1974, on the full and true value of taxable property taxable under this chapter.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ak-as-43-56-010.md", "quote": "A municipality may levy and collect a tax under AS 29.45.080 at the rate of taxation that applies to other property taxed by the municipality.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ak-as-43-56-010.md", "quote": "shall be credited against the tax levied under (a) of this section for that tax year.", "supports": "ad_valorem_note" }, { "file": "sources/sev-ak-as-43-56-010.md", "quote": "The credit or refund of taxes paid to a municipality may not exceed the total amount of tax levied by the department upon the taxpayer for the tax year", "supports": "ad_valorem_note" }, { "file": "sources/sev-ak-as-43-56-210.md", "quote": "means real and tangible personal property used or committed by contract or other agreement for use within this state primarily in the exploration for, production of, or pipeline transportation of gas or unrefined oil", "supports": "ad_valorem_note" }, { "file": "sources/sev-ak-as-43-56-210.md", "quote": "drilling rigs, wells (whether producing or not), gathering lines and transmission lines", "supports": "ad_valorem_note" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "There is levied on the producer of oil or gas a tax for all oil and gas produced each calendar year from each lease or property in the state the ownership or right to which constitutes a landowner's royalty interest", "supports": "royalty_owner_note" }, { "file": "sources/sev-ak-as-43-55-900.md", "quote": "a lessor's royalty interest under an oil and gas lease; or", "supports": "royalty_owner_note" }, { "file": "sources/sev-ak-as-43-55-900.md", "quote": "held by a surface owner of land from which oil or gas is produced; and", "supports": "royalty_owner_note" }, { "file": "sources/sev-ak-as-43-55-020.md", "quote": "in making settlement with the royalty owner for oil and gas that is taxable under AS 43.55.011, the producer may deduct the amount of the tax paid on taxable royalty oil and gas", "supports": "royalty_owner_note" }, { "file": "sources/sev-ak-akleg-statutes-index.md", "quote": "Alaska Statutes 2025 [...] 34th Legislature(2025-2026)", "supports": "effective_or_as_of" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "Effective January 1, 2022, the tax on gas production is 13% of the gross value at the point of production.", "supports": "effective_or_as_of" }, { "file": "sources/sev-ak-dor-oil-gas-production-tax.md", "quote": "The current tax rate of 35% for oil production was set in 2013 by Senate Bill 21", "supports": "effective_or_as_of" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "on and after January 1, 2014, and before January 1, 2022, the tax is equal to the annual production tax value of the taxable oil and gas as calculated under AS 43.55.160(a)(1) multiplied by 35 percent", "supports": "effective_or_as_of" }, { "file": "sources/sev-ak-as-43-55-011.md", "quote": "the average rate of tax that was imposed under this chapter for taxable gas produced from the lease or property for the 12-month period ending on March 31, 2006", "supports": "gas_rate" }, { "file": "sources/sev-ak-as-43-56-010.md", "quote": "A tax paid to a municipality under AS 29.45.080 or former AS 29.53.045 on or before June 30 of the tax year shall be credited against the tax levied under (a) of this section for that tax year.", "supports": "ad_valorem_note" } ] }, { "abbr": "AL", "state": "Alabama", "levy_name": "Oil and gas privilege tax (Code of Alabama 40-20-2, with 40-20-21 for deep offshore production); oil and gas production tax for the expenses of the State Oil and Gas Board (Code of Alabama 9-17-25, with 9-17-35 for deep offshore production)", "oil_rate": "Privilege tax: 8% of gross value at the point of production (general rate); 6% for wells permitted on or after July 1, 1988 (ALDOR table); 4% for wells producing 25 barrels of oil or less per day and for incremental production from qualified enhanced recovery projects; 3.65% of gross proceeds for offshore production from depths greater than 8,000 feet. Production tax: an additional 2% of gross value (1.66% of gross proceeds for offshore production from depths greater than 8,000 feet).", "gas_rate": "Privilege tax: 8% of gross value at the point of production (general rate); 6% for wells permitted on or after July 1, 1988 (ALDOR table); 4% for wells producing 200,000 cubic feet (200 MCF) of gas or less per day and for incremental production from qualified enhanced recovery projects; 3.65% of gross proceeds for offshore production from depths greater than 8,000 feet. Production tax: an additional 2% of gross value (1.66% of gross proceeds for offshore production from depths greater than 8,000 feet).", "base": "Gross value of the oil or gas at the point of production, levied on the entire production in the state including the royalty interest. Offshore production from depths greater than 8,000 feet below mean sea level is taxed on gross proceeds instead.", "key_exemptions_or_reduced_rates": [ "4% privilege rate for wells producing 25 barrels of oil or 200,000 cubic feet of gas or less per day.", "4% privilege rate for incremental production from qualified enhanced recovery projects approved by the State Oil and Gas Board.", "Wells first permitted from July 1, 1996 to before July 1, 2002, except replacements for wells first permitted before July 1, 1996: privilege rate cut by 50% and production tax set at 1% for five years from commercial production.", "Gas lawfully injected into pools or reservoirs, or into the earth to lift oil or gas, is exempt unless sold for that purpose or injected into underground storage.", "Gas lawfully vented or flared in connection with production, treatment or processing is exempt.", "Offshore production from depths greater than 8,000 feet: privilege tax 3.65% and production tax 1.66%, both on gross proceeds." ], "ad_valorem_note": "Code of Alabama 40-20-12 exempts oil or gas produced, leases in production, mineral rights in producing properties, and oil or gas under the ground on producing properties from all state, county and municipal ad valorem taxes.", "royalty_owner_note": "Royalty owners bear their share: the privilege tax is levied on the entire production including the royalty interest, in proportion to ownership, and the person in charge of production operations must deduct each owner's share before paying them, while a purchaser accounts for the tax when the operator sells the oil or gas.", "effective_or_as_of": "Code of Alabama text read October 1, 2026; sections 40-20-2, 40-20-21, 9-17-25 and 9-17-35 were last amended by Act 2009-147.", "source": { "url": "https://alison.legislature.state.al.us/code-of-alabama?section=40-20-2", "publisher": "Alabama Legislature, Code of Alabama 1975 (ALISON)", "type": "official_statute", "pinpoint": "Code of Alabama 40-20-2, 40-20-3, 40-20-12 and 40-20-21", "accessed": "2026-10-01", "local_copy": "sources/sev-al-code-40-20.md" }, "additional_sources": [ { "url": "https://alison.legislature.state.al.us/code-of-alabama?section=9-17-25", "publisher": "Alabama Legislature, Code of Alabama 1975 (ALISON)", "type": "official_statute", "pinpoint": "Code of Alabama 9-17-25 and 9-17-35", "accessed": "2026-10-01", "local_copy": "sources/sev-al-code-9-17.md" }, { "url": "https://www.revenue.alabama.gov/business-license/severance-taxes-administered/", "publisher": "Alabama Department of Revenue", "type": "official_agency", "pinpoint": "Oil and Gas section, production tax, reduced privilege tax and privilege tax rate tables", "accessed": "2026-10-01", "local_copy": "sources/sev-al-dor-severance-rates.md" }, { "url": "https://www.revenue.alabama.gov/tax-types/oil-gas-privilege-tax/", "publisher": "Alabama Department of Revenue", "type": "official_agency", "pinpoint": "Rate heading, 3.85% Privilege entry", "accessed": "2026-10-01", "local_copy": "sources/sev-al-dor-privilege-tax.md" } ], "confidence": "high", "open_questions": [ "The ALDOR Oil and Gas Privilege Tax page lists 3.85% for offshore production from depths greater than 8,000 feet, while Code of Alabama 40-20-21 and the ALDOR rate table say 3.65%. The statute rate is used here and the ALDOR page appears to be in error.", "Section 40-20-2(a)(5) says the general rate is reduced by 2 percent for wells first permitted on or after July 1, 1988; ALDOR reads this as a 6% rate. How this reduction combines with the 4% stripper rate was not confirmed." ], "evidence": [ { "file": "sources/sev-al-code-40-20.md", "quote": "annual privilege taxes upon every person engaging or continuing to engage within the State of Alabama in the business of producing or severing oil or gas", "supports": "levy_name" }, { "file": "sources/sev-al-code-9-17.md", "quote": "there is hereby levied on the producer a tax equal in amount to two percent of the gross value, at the point of production, of the crude petroleum oil or natural gas", "supports": "levy_name" }, { "file": "sources/sev-al-code-40-20.md", "quote": "The amount of such tax shall be measured at the rate of eight percent of the gross value of the oil or gas at the point of production", "supports": "oil_rate" }, { "file": "sources/sev-al-code-40-20.md", "quote": "All wells producing 25 barrels or less of oil per day or producing 200,000 cubic feet or less of gas per day shall be taxed at the rate of four percent", "supports": "oil_rate" }, { "file": "sources/sev-al-dor-severance-rates.md", "quote": "Offshore wells producing greater than 200 MCF or 25 BBls per day at depths less than 8,000 feet. Wells permitted 7/01/88 or later.", "supports": "oil_rate" }, { "file": "sources/sev-al-code-40-20.md", "quote": "The amount of the tax shall be computed at the rate of three and sixty-five one hundredths percent (3.65%) of the gross proceeds attributable to the offshore production.", "supports": "gas_rate" }, { "file": "sources/sev-al-code-9-17.md", "quote": "shall be computed at the rate of one and sixty-six one hundredths percent (1.66%) of the gross proceeds attributable to the offshore production", "supports": "gas_rate" }, { "file": "sources/sev-al-code-40-20.md", "quote": "The tax is hereby levied upon the basis of the entire production in this state, including what is known as the royalty interest", "supports": "base" }, { "file": "sources/sev-al-code-40-20.md", "quote": "the incremental oil or gas production produced during a given year resulting from a qualified enhanced recovery project shall be taxed at the rate of four percent", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-al-code-40-20.md", "quote": "the applicable rate shall be reduced by 50 percent for a period of five years commencing with commercial production", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-al-code-9-17.md", "quote": "the applicable rate of tax levied pursuant to subsection (a) shall be one percent for a period of five years commencing with commercial production", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-al-code-40-20.md", "quote": "natural gas lawfully injected into oil or gas pools or reservoirs in the soil or beneath the soil or waters of the State of Alabama is exempt from this tax", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-al-code-40-20.md", "quote": "Natural gas lawfully vented or flared in connection with the production, treatment, or processing of oil or gas is exempt from this tax.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-al-code-40-20.md", "quote": "All oil or gas produced, all leases in production, including mineral rights in producing properties, and all oil or gas under the ground on producing properties within the State of Alabama shall be exempt from all ad valorem taxes", "supports": "ad_valorem_note" }, { "file": "sources/sev-al-code-40-20.md", "quote": "The privilege tax hereby imposed is levied upon the producers of such oil or gas in the proportion of their ownership at the time of severance", "supports": "royalty_owner_note" }, { "file": "sources/sev-al-code-40-20.md", "quote": "required to deduct from any amount due to producers of such production at the time of severance the proportionate amount of the tax herein levied before making payments to such producers", "supports": "royalty_owner_note" }, { "file": "sources/sev-al-code-40-20.md", "quote": "When any person in charge of production operations shall sell the oil or gas produced by him, the purchaser shall account for the tax.", "supports": "royalty_owner_note" }, { "file": "sources/sev-al-code-40-20.md", "quote": "Act 99-584, p. 1332, §1; Act 2009-147, p. 284, §3.)", "supports": "effective_or_as_of" }, { "file": "sources/sev-al-dor-privilege-tax.md", "quote": "3.85% Privilege Offshore wells producing from depths greater than 8,000 feet below mean sea level, computed as a percentage of gross proceeds.", "supports": "open_questions" }, { "file": "sources/sev-al-dor-severance-rates.md", "quote": "3.65% Gross proceeds from offshore production from depths greater than 8,000 feet below mean sea level.", "supports": "open_questions" }, { "file": "sources/sev-al-code-40-20.md", "quote": "the rate provided in subdivision (1) of this subsection shall be reduced by 2 percent", "supports": "open_questions" } ] }, { "abbr": "MS", "state": "Mississippi", "levy_name": "Oil severance tax (Miss. Code 27-25-503); gas severance tax (Miss. Code 27-25-703); State Oil and Gas Board maintenance fee (Miss. Code 53-1-73)", "oil_rate": "Severance tax 6% of the value of the oil at the point of production; 3% for oil from enhanced oil recovery using carbon dioxide piped to the well site or another method approved by the State Oil and Gas Board on or after April 1, 1994; 1.3% for oil from horizontally drilled wells and horizontally drilled recompletion wells whose production commenced on or after July 1, 2013, for 30 months from first sale or until payout, whichever comes first. The separate Oil and Gas Board maintenance fee rate in force was not read.", "gas_rate": "Severance tax 6% of the value of the gas at the point of production; 1.3% for gas from horizontally drilled wells and horizontally drilled recompletion wells whose production commenced on or after July 1, 2013, for 30 months from first sale or until payout, whichever comes first. The separate Oil and Gas Board maintenance fee rate in force was not read.", "base": "Value of the oil or gas at the point of production, on the entire production in the state regardless of where or to whom it is sold. Under the Department of Revenue gas rule, value is the sales price or market value at the mouth of the well, and marketing and third party transportation deductions may not exceed 8% of the sales price.", "key_exemptions_or_reduced_rates": [ "3% oil rate for enhanced oil recovery using carbon dioxide piped to the well site, or another enhanced recovery method approved by the State Oil and Gas Board on or after April 1, 1994.", "1.3% rate on oil and gas from horizontally drilled wells and recompletions for 30 months or until payout; this paragraph is repealed from July 1, 2028, but wells whose production commences before then keep the rate.", "Gas injected for cycling, repressuring, lifting or enhancing oil recovery, gas vented or flared in oil production, and gas condensed into liquids that pay the oil tax are not taxed as gas.", "A school district's royalty interest in sixteenth section land is exempt from gas severance tax under the Department of Revenue rule.", "Discovery well, development well, three dimensional seismic, inactive well and coal seam gas incentives in the statute applied only to wells drilled or brought into production in windows that closed between 1990 and 2007." ], "ad_valorem_note": null, "royalty_owner_note": "For gas, the Department of Revenue rule levies the tax on producers in proportion to their ownership, requires the operator to deduct it from amounts due owners before paying them, and requires a purchaser that pays owners directly to withhold and remit it.", "effective_or_as_of": "Rates as amended by House Bill 383 (2023 Regular Session), approved by the Governor March 10, 2023 and effective July 1, 2023; read October 1, 2026.", "source": { "url": "https://billstatus.ls.state.ms.us/documents/2023/html/HB/0300-0399/HB0383SG.htm", "publisher": "Mississippi Legislature", "type": "official_statute", "pinpoint": "HB 383 (2023), Section 1 (Miss. Code 27-25-503) and Section 2 (Miss. Code 27-25-703) as amended", "accessed": "2026-10-01", "local_copy": "sources/sev-ms-hb383-2023.md" }, "additional_sources": [ { "url": "https://billstatus.ls.state.ms.us/2023/pdf/history/HB/HB0383.xml", "publisher": "Mississippi Legislature, bill status system", "type": "official_statute", "pinpoint": "HB 383 (2023) status record, action 13 Approved by Governor", "accessed": "2026-10-01", "local_copy": "sources/sev-ms-hb383-2023-history.md" }, { "url": "https://www.dor.ms.gov/business/oil-and-gas-severance", "publisher": "Mississippi Department of Revenue", "type": "official_agency", "pinpoint": "Exemptions heading", "accessed": "2026-10-01", "local_copy": "sources/sev-ms-dor-oil-gas-severance.md" }, { "url": "https://www.sos.ms.gov/adminsearch/ACCode/00000163c.pdf", "publisher": "Mississippi Department of Revenue, Mississippi Administrative Code Title 35 Part VIII", "type": "official_agency", "pinpoint": "Title 35, Part VIII, Subpart 02, Chapters 01 and 02, rules 100 to 103, 101, 204 and 300", "accessed": "2026-10-01", "local_copy": "sources/sev-ms-admin-code-gas-severance.md", "via": "Internet Archive snapshot August 30, 2026" }, { "url": "https://www.lbo.ms.gov/misc/sourcesofrevenue/491-00-rev.pdf", "publisher": "Mississippi Legislative Budget Office, Agency Revenue Source Report (Mississippi State Oil and Gas Board)", "type": "official_agency", "pinpoint": "Page 1, Maintenance Fee entry (fiscal 2015 data)", "accessed": "2026-10-01", "local_copy": "sources/sev-ms-lbo-ogb-revenue-fy15.md" }, { "url": "https://billstatus.ls.state.ms.us/2026/pdf/code_sections/027/00250703.xml", "publisher": "Mississippi Legislature, bill status system", "type": "official_statute", "pinpoint": "2026 Regular Session code section index for 27-25-703", "accessed": "2026-10-01", "local_copy": "sources/sev-ms-code-section-index-2026-27-25-703.md" } ], "confidence": "medium", "open_questions": [ "The codified text of Miss. Code 27-25-503 and 27-25-703 on the official LexisNexis host was not read; the rates come from House Bill 383 (2023) as sent to and approved by the Governor.", "The Legislature's code section index showed no 2024 or 2025 bill touching 27-25-503 or 27-25-703 and only 2026 Senate Bill 2858, which died in committee, for 27-25-703; extraordinary sessions were not checked.", "The State Oil and Gas Board maintenance fee in force under Miss. Code 53-1-73 was not read. The fiscal 2015 Legislative Budget Office report shows assessments of .044 per barrel of oil and .005 per 1,000 cubic feet of gas.", "Whether producing oil and gas or mineral interests in Mississippi are subject to local ad valorem tax was not read in an official source.", "The oil severance statute text read does not say who withholds the oil tax from royalty owners; the Department of Revenue rule read covers gas only." ], "evidence": [ { "file": "sources/sev-ms-hb383-2023.md", "quote": "annual privilege taxes upon every person engaging or continuing within this state in the business of producing, or severing oil from the soil or water for sale, transport, storage, profit or for commercial use", "supports": "levy_name" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "annual privilege taxes upon every person engaging or continuing within this state in the business of producing, or severing gas from below the soil or water", "supports": "levy_name" }, { "file": "sources/sev-ms-lbo-ogb-revenue-fy15.md", "quote": "Maintenance Fee Amount Assessed $2,773,797.25 Amount Collected $3,011,818.67 Authority to Collect MC 53-1-73", "supports": "levy_name" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "shall be levied and assessed at the rate of six percent (6%) of the value of the oil at the point of production", "supports": "oil_rate" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "levied and assessed at the rate of one and three-tenths percent (1.3%) of the value of the oil at the point of production on oil produced from a horizontally drilled well", "supports": "oil_rate" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "for a period of thirty (30) months beginning on the date of first sale of production or until payout of the well cost is achieved, whichever first occurs", "supports": "oil_rate" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "shall be levied and assessed at a rate of six percent (6%) of the value of the gas at the point of production", "supports": "gas_rate" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "levied and assessed at the rate of one and three-tenths percent (1.3%) of the value of the gas at the point of production on gas produced from a horizontally drilled well", "supports": "gas_rate" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "The tax is levied upon the entire production in this state regardless of the place of sale or to whom sold", "supports": "base" }, { "file": "sources/sev-ms-admin-code-gas-severance.md", "quote": "requires the sales price or market value of natural gas to be determined at the mouth of the well", "supports": "base" }, { "file": "sources/sev-ms-admin-code-gas-severance.md", "quote": "The deductions for marketing costs and third party transportation cannot exceed an 8% limit of the sales price of the gas", "supports": "base" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "The tax shall be levied and assessed at the rate of three percent (3%) of the value of the oil at the point of production on oil produced by an enhanced oil recovery method in which carbon dioxide is used", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ms-dor-oil-gas-severance.md", "quote": "Enhanced Oil Recovery wells completed after April 1, 1994, that use an approved method, receive a three percent (3%) reduced rate.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "2028, shall be taxed as provided for in this paragraph (c) notwithstanding that the repeal of this paragraph (c) has become effective.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "not levied upon that gas, lawfully injected into the earth for cycling, repressuring, lifting or enhancing the recovery of oil, nor upon gas lawfully vented or flared in connection with the production of oil", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ms-admin-code-gas-severance.md", "quote": "A school district's royalty interest in sixteenth section land is exempt from gas severance.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "after July 1, 2004, and before July 1, 2007, shall be taxed at the rate of three percent (3%) of the gross value of the occluded natural gas from coal seams", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ms-admin-code-gas-severance.md", "quote": "The tax on gas severed from within the state is levied upon the producers of such gas in the proportion of their ownership.", "supports": "royalty_owner_note" }, { "file": "sources/sev-ms-admin-code-gas-severance.md", "quote": "required to deduct the amount of severance tax from any amount due the owners of such gas before making payments to such owners", "supports": "royalty_owner_note" }, { "file": "sources/sev-ms-admin-code-gas-severance.md", "quote": "the purchaser shall be empowered and required to deduct and withhold the amount of severance tax from any amount due to such owners before making payments to such owners", "supports": "royalty_owner_note" }, { "file": "sources/sev-ms-hb383-2023.md", "quote": "This act shall take effect and be in force from and after July 1, 2023.", "supports": "effective_or_as_of" }, { "file": "sources/sev-ms-hb383-2023-history.md", "quote": "03/10 Approved by Governor", "supports": "effective_or_as_of" }, { "file": "sources/sev-ms-lbo-ogb-revenue-fy15.md", "quote": "Assessment is levied agains each barrel of oil produced and sold (.044) and against each one thousand (1,000) cubic foot of gas", "supports": "open_questions" }, { "file": "sources/sev-ms-code-section-index-2026-27-25-703.md", "quote": "Gas severance tax; include carbon dioxide within definition of \"gas.\" Barnett ../../Senate_authors/Barnett.xml 02/25 (S) Died In Committee", "supports": "open_questions" } ] }, { "abbr": "MI", "state": "Michigan", "levy_name": "Severance tax on oil or gas (1929 PA 48, MCL 205.301 to 205.317); oil and gas fee for monitoring, surveillance, enforcement and administration (MCL 324.61524)", "oil_rate": "Severance tax 6.6% of gross cash market value; 4% for stripper well crude oil and crude oil from marginal properties; 4% for oil from carbon dioxide secondary or enhanced recovery projects approved after March 30, 2014. Plus the oil and gas fee, set by Treasury at 1% of gross cash market value for 2026 (statutory maximum 1%).", "gas_rate": "Severance tax 5% of gross cash market value; 4% for gas from carbon dioxide secondary or enhanced recovery projects approved after March 30, 2014. Plus the oil and gas fee, set by Treasury at 1% of gross cash market value for 2026 (statutory maximum 1%).", "base": "Gross cash market value of the total production, computed when and where the oil or gas was severed, excluding production or proceeds attributable to the state, the United States, or their political subdivisions.", "key_exemptions_or_reduced_rates": [ "4% rate for stripper well crude oil and crude oil from marginal properties.", "4% rate for oil and gas from carbon dioxide secondary or enhanced recovery projects approved after March 30, 2014.", "Production or proceeds attributable to the state, the United States or a political subdivision are excluded.", "No severance tax on income from Devonian or Antrim shale hydrocarbons that qualify for the federal section 45K credit and were acquired through a royalty interest sold by the state.", "A contractual reimbursement of the tax by a pipeline company or purchaser is not counted in gross cash market value." ], "ad_valorem_note": "MCL 205.315 makes the severance tax in lieu of all other state or local taxes on the oil or gas, the property rights in it, and oil and gas leases and the values they create; machinery, pipelines, tanks and other equipment are not exempted.", "royalty_owner_note": "Each owner bears its proportionate share: a pipeline company or common purchaser withholds the tax due by the respective owners from the proceeds or purchase price and pays it to the Department of Treasury.", "effective_or_as_of": "MCL 205.303 last amended by 2014 PA 82, effective April 1, 2014; the Treasury page (archive copy May 11, 2026) sets the 2026 oil and gas fee at 1%.", "source": { "url": "https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-303", "publisher": "Michigan Legislature (Legislative Service Bureau)", "type": "official_statute", "pinpoint": "MCL 205.303(1) to (4)", "accessed": "2026-10-01", "local_copy": "sources/sev-mi-mcl-205-303.md", "via": "Internet Archive snapshot August 11, 2025" }, "additional_sources": [ { "url": "https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-205-315", "publisher": "Michigan Legislature (Legislative Service Bureau)", "type": "official_statute", "pinpoint": "MCL 205.315", "accessed": "2026-10-01", "local_copy": "sources/sev-mi-mcl-205-315.md", "via": "Internet Archive snapshot September 16, 2025" }, { "url": "https://www.legislature.mi.gov/Laws/MCL?objectName=mcl-324-61524", "publisher": "Michigan Legislature (Legislative Service Bureau)", "type": "official_statute", "pinpoint": "MCL 324.61524(1)", "accessed": "2026-10-01", "local_copy": "sources/sev-mi-mcl-324-61524.md", "via": "Internet Archive snapshot September 12, 2025" }, { "url": "https://www.michigan.gov/taxes/business-taxes/misc/severance", "publisher": "Michigan Department of Treasury", "type": "official_agency", "pinpoint": "2026 Current Year Fee, Oil and Gas Fee table and Tax Rates table", "accessed": "2026-10-01", "local_copy": "sources/sev-mi-treasury-severance.md", "via": "Internet Archive snapshot May 11, 2026" } ], "confidence": "high", "open_questions": [ "michigan.gov and legislature.mi.gov was not available when AMR checked, so all four texts were read from Internet Archive copies dated August 11, 2025 to May 11, 2026; changes after those dates were not checked." ], "evidence": [ { "file": "sources/sev-mi-mcl-205-303.md", "quote": "205.303 Severance tax; rate; computing value of production", "supports": "levy_name" }, { "file": "sources/sev-mi-mcl-324-61524.md", "quote": "a fee not in excess of 1%, based upon the gross cash market value, is levied upon oil and gas produced in this state", "supports": "levy_name" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "shall be in the amount of 5% of the gross cash market value of the total production of gas or 6.6% of the gross cash market value of the total production of oil", "supports": "oil_rate" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "shall be in the amount of 4% of the gross cash market value of the total production of the oil", "supports": "oil_rate" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "shall be 4.0% of the gross cash market value for oil and 4.0% of the gross cash market value for gas", "supports": "gas_rate" }, { "file": "sources/sev-mi-treasury-severance.md", "quote": "2026 Oil & Gas Fee is set at 1% (0.01)", "supports": "gas_rate" }, { "file": "sources/sev-mi-treasury-severance.md", "quote": "Marginal/Stripper Oil Well Oil Condensate 4% of gross cash market value", "supports": "oil_rate" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "The value of all production shall be computed as of the time when and at the place where the production was severed or taken from the soil immediately after the severance.", "supports": "base" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "exclusive of the production or proceeds from the production attributable to this state, the government of the United States, or a political subdivision of this state", "supports": "base" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "A producer is not required to pay a severance tax on income received from the hydrocarbons produced from devonian or antrim shale", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "the tax reimbursement shall not be considered a part of the gross cash market value of the total production of the oil or gas", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-mi-mcl-205-315.md", "quote": "The severance tax herein provided for shall be in lieu of all other taxes, state or local, upon the oil or gas, the property rights attached thereto or inherent therein", "supports": "ad_valorem_note" }, { "file": "sources/sev-mi-mcl-205-315.md", "quote": "Nothing herein contained shall in anywise exempt the machinery, appliances, pipe lines, tanks and other equipment used in the development or operation of said leases", "supports": "ad_valorem_note" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "the pipeline company shall withhold out of the proceeds or price to be paid for the products severed, the proportionate parts of the tax due by the respective owners of the oil and gas", "supports": "royalty_owner_note" }, { "file": "sources/sev-mi-mcl-205-303.md", "quote": "Am. 2014, Act 82, Imd. Eff. Apr. 1, 2014", "supports": "effective_or_as_of" } ] }, { "abbr": "KY", "state": "Kentucky", "levy_name": "Tax on production of crude petroleum (KRS 137.120, oil); natural resources severance and processing tax (KRS 143A.020, natural gas and other natural resources)", "oil_rate": "4.5% of the market value of all crude petroleum produced in the state.", "gas_rate": "4.5% of the gross value of the natural gas severed or processed.", "base": "Oil: market value of the crude petroleum, with the tax attaching when it is first transported from the tanks or other receptacle at the place of production. Natural gas: gross value of the natural resource severed or processed.", "key_exemptions_or_reduced_rates": [ "Credit equal to 4.5% of the market value of crude oil produced from a recovered inactive well (inactive for two consecutive years, or plugged and abandoned, and then producing again) (KRS 137.132).", "Credit equal to 4.5% of the gross value of natural gas produced from a recovered inactive well (KRS 143A.033)." ], "ad_valorem_note": "Oil and gas reserves are also taxed as property: under KRS 132.820 the Department of Revenue values and assesses oil and gas reserves as a distinct interest in real property, and developed gas property returns list working, royalty and overriding royalty owners for tax billing. KRS 143A.020 says the severance tax is in addition to all other taxes.", "royalty_owner_note": "The oil tax is imposed ratably on all persons owning any interest in the oil, and every transporter of crude petroleum is liable for it and collects it from the producer (KRS 137.120, 137.140).", "effective_or_as_of": "KRS 137.120 and KRS 143A.020 show Effective: June 1, 1980 on the statute pages, read from Internet Archive copies dated March 10, 2025 and March 7, 2025.", "source": { "url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28629", "publisher": "Kentucky General Assembly, Legislative Research Commission (Kentucky Revised Statutes)", "type": "official_statute", "pinpoint": "KRS 137.120", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-krs-137-120.md", "via": "Internet Archive snapshot March 10, 2025" }, "additional_sources": [ { "url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29251", "publisher": "Kentucky General Assembly, Legislative Research Commission (Kentucky Revised Statutes)", "type": "official_statute", "pinpoint": "KRS 143A.020", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-krs-143a-020.md", "via": "Internet Archive snapshot March 7, 2025" }, { "url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28632", "publisher": "Kentucky General Assembly, Legislative Research Commission (Kentucky Revised Statutes)", "type": "official_statute", "pinpoint": "KRS 137.140", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-krs-137-140.md", "via": "Internet Archive snapshot March 10, 2025" }, { "url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=28631", "publisher": "Kentucky General Assembly, Legislative Research Commission (Kentucky Revised Statutes)", "type": "official_statute", "pinpoint": "KRS 137.132", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-krs-137-132.md", "via": "Internet Archive snapshot March 14, 2025" }, { "url": "https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=29254", "publisher": "Kentucky General Assembly, Legislative Research Commission (Kentucky Revised Statutes)", "type": "official_statute", "pinpoint": "KRS 143A.033", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-krs-143a-033.md", "via": "Internet Archive snapshot April 30, 2025" }, { "url": "https://revenue.ky.gov/Property/Mineral%20Severance/Pages/Mineral%20Severance.aspx", "publisher": "Kentucky Department of Revenue", "type": "official_agency", "pinpoint": "Main content, location of severance tax laws", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-dor-mineral-severance.md" }, { "url": "https://revenue.ky.gov/Property/Natural%20Resources/Pages/Natural-Resources.aspx", "publisher": "Kentucky Department of Revenue", "type": "official_agency", "pinpoint": "Main content, KRS 132.820 paragraph", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-dor-natural-resources-property.md" }, { "url": "https://revenue.ky.gov/Property/Natural%20Resources/Documents/62A384-G%20(1-26)%20Combined.pdf", "publisher": "Kentucky Department of Revenue", "type": "official_agency", "pinpoint": "Form 62A384-G (1-26), instructions and ownership schedule instructions", "accessed": "2026-10-01", "local_copy": "sources/sev-ky-dor-form-62a384g-2026.md" } ], "confidence": "medium", "open_questions": [ "apps.legislature.ky.gov was not available when AMR checked; the KRS sections were read from Internet Archive copies dated March 7, 2025 to April 30, 2025, older than July 1, 2025, so 2025 and 2026 session changes were not checked.", "Who withholds the natural gas severance tax from royalty owners, and how gross value of natural gas is defined in KRS 143A.010, was not read.", "The property tax rate applied to assessed oil and gas reserves was not read." ], "evidence": [ { "file": "sources/sev-ky-krs-137-120.md", "quote": "Every producer of crude petroleum oil shall pay a tax for state purposes equal to four and one-half percent (4.5%) of the market value of all crude petroleum produced by him in this state.", "supports": "levy_name" }, { "file": "sources/sev-ky-krs-143a-020.md", "quote": "a tax is hereby levied at the rate of four and one-half percent (4.5%) on natural gas", "supports": "levy_name" }, { "file": "sources/sev-ky-dor-mineral-severance.md", "quote": "Crude Petroleum (Oil) Severance Tax laws are located in KRS 137.", "supports": "levy_name" }, { "file": "sources/sev-ky-krs-137-120.md", "quote": "four and one-half percent (4.5%) of the market value of all crude petroleum produced by him in this state", "supports": "oil_rate" }, { "file": "sources/sev-ky-krs-143a-020.md", "quote": "such rates to apply to the gross value of the natural resource severed or processed", "supports": "gas_rate" }, { "file": "sources/sev-ky-krs-137-120.md", "quote": "The tax provided by this section shall be imposed and attached when the crude petroleum is first transported from the tanks or other receptacle located at the place of production", "supports": "base" }, { "file": "sources/sev-ky-krs-137-132.md", "quote": "shall be allowed a credit against the tax imposed under KRS 137.120 equal to four and one-half percent (4.5%) of the market value of crude petroleum oil that is produced from a recovered inactive well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ky-krs-143a-033.md", "quote": "shall be allowed a credit against the tax imposed under KRS 143A.020 equal to four and one-half percent (4.5%) of the gross value of natural gas that is produced from a recovered inactive well", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ky-dor-natural-resources-property.md", "quote": "Unmined coal, oil, gas reserves and other mineral or energy resources shall in all cases be valued and assessed by the Department of Revenue as a distinct interest in real property", "supports": "ad_valorem_note" }, { "file": "sources/sev-ky-dor-form-62a384g-2026.md", "quote": "the names, SSN/Fein and addresses of the working, royalty, and overriding interest owners associated with the property", "supports": "ad_valorem_note" }, { "file": "sources/sev-ky-krs-143a-020.md", "quote": "shall be in addition to all other taxes imposed by law", "supports": "ad_valorem_note" }, { "file": "sources/sev-ky-krs-137-120.md", "quote": "shall be imposed ratably upon all persons owning any interest in such oil", "supports": "royalty_owner_note" }, { "file": "sources/sev-ky-krs-137-140.md", "quote": "Every transporter of crude petroleum shall be liable for the taxes imposed under KRS 137.120 on all crude petroleum received by him. He shall collect from the producer", "supports": "royalty_owner_note" }, { "file": "sources/sev-ky-krs-137-120.md", "quote": "Effective: June 1, 1980 History: Amended 1980 Ky. Acts ch. 392, sec. 17", "supports": "effective_or_as_of" }, { "file": "sources/sev-ky-krs-143a-020.md", "quote": "Effective: June 1, 1980 History: Created 1980 Ky. Acts ch. 392, sec. 2", "supports": "effective_or_as_of" } ] }, { "abbr": "NE", "state": "Nebraska", "levy_name": "Oil and gas severance tax (Neb. Rev. Stat. 57-702 and 57-703); Oil and Gas Conservation Fund charge on the value at the well of oil and gas produced (Neb. Rev. Stat. 57-919)", "oil_rate": "Severance tax 3% of the value of nonstripper oil; 2% for oil produced from properties producing stripper oil (base production level of ten or fewer barrels per day). Plus the conservation charge, not to exceed fifteen mills on the dollar (1.5%) of value at the well, fixed by order of the Oil and Gas Conservation Commission; the figure in force was not read.", "gas_rate": "Severance tax 3% of the value of natural gas. Plus the conservation charge, not to exceed fifteen mills on the dollar (1.5%) of value at the well, fixed by Commission order; the figure in force was not read.", "base": "Value of the oil or natural gas computed immediately after severance at the place where severed; the conservation charge is levied on the value at the well of oil and gas produced, saved, and sold or transported from the premises.", "key_exemptions_or_reduced_rates": [ "2% severance rate for oil from properties producing stripper oil, meaning a base production level of ten or fewer barrels per day.", "Oil or gas used only in severing operations or for repressuring or recycling is not subject to the severance tax.", "The conservation charge exempts the interests of the United States, the state and its political subdivisions, Indian interests on federally supervised land, and oil and gas used in producing operations or for repressuring or recycling." ], "ad_valorem_note": null, "royalty_owner_note": "For the conservation charge, royalty and other interest owners are liable to the producer in proportion to their ownership and the person remitting the charge must deduct it from amounts due them; the severance tax is paid by the first purchaser when the oil or gas is sold in the state, or by the severer when sold outside the state.", "effective_or_as_of": "Statute pages read from Internet Archive copies dated May 22, 2025 (57-701), January 13, 2026 (57-703), January 21, 2026 (57-702) and March 9, 2026 (57-919); 57-703 was last amended by Laws 1983, LB 228.", "source": { "url": "https://nebraskalegislature.gov/laws/statutes.php?statute=57-703", "publisher": "Nebraska Legislature (Nebraska Revised Statutes)", "type": "official_statute", "pinpoint": "Neb. Rev. Stat. 57-703", "accessed": "2026-10-01", "local_copy": "sources/sev-ne-statute-57-703.md", "via": "Internet Archive snapshot January 13, 2026" }, "additional_sources": [ { "url": "https://nebraskalegislature.gov/laws/statutes.php?statute=57-702", "publisher": "Nebraska Legislature (Nebraska Revised Statutes)", "type": "official_statute", "pinpoint": "Neb. Rev. Stat. 57-702(1)", "accessed": "2026-10-01", "local_copy": "sources/sev-ne-statute-57-702.md", "via": "Internet Archive snapshot January 21, 2026" }, { "url": "https://nebraskalegislature.gov/laws/statutes.php?statute=57-701", "publisher": "Nebraska Legislature (Nebraska Revised Statutes)", "type": "official_statute", "pinpoint": "Neb. Rev. Stat. 57-701(7) and (8)", "accessed": "2026-10-01", "local_copy": "sources/sev-ne-statute-57-701.md", "via": "Internet Archive snapshot May 22, 2025" }, { "url": "https://nebraskalegislature.gov/laws/statutes.php?statute=57-919", "publisher": "Nebraska Legislature (Nebraska Revised Statutes)", "type": "official_statute", "pinpoint": "Neb. Rev. Stat. 57-919(2)", "accessed": "2026-10-01", "local_copy": "sources/sev-ne-statute-57-919.md", "via": "Internet Archive snapshot March 9, 2026" } ], "confidence": "medium", "open_questions": [ "The conservation charge in force, fixed by order of the Nebraska Oil and Gas Conservation Commission, was not read; nogcc.ne.gov and revenue.nebraska.gov was not available when AMR checked and no archived page stating the current figure was found.", "nebraskalegislature.gov was not available when AMR checked, so the statutes were read from Internet Archive copies dated May 22, 2025 to March 9, 2026; changes made after those copies, including any from the 2026 session, were not checked.", "Whether producing oil and gas interests in Nebraska are assessed for local property tax was not read.", "Whether the first purchaser deducts the severance tax from royalty owners' payments was not stated in the sections read." ], "evidence": [ { "file": "sources/sev-ne-statute-57-702.md", "quote": "taxes are hereby levied on oil and natural gas severed from the soil of this state, except such oil or gas as is used only in severing operations or for repressuring or recycling purposes", "supports": "levy_name" }, { "file": "sources/sev-ne-statute-57-919.md", "quote": "There is hereby levied and assessed on the value at the well of all oil and gas produced, saved, and sold or transported from the premises in Nebraska where produced a charge not to exceed fifteen mills on the dollar.", "supports": "levy_name" }, { "file": "sources/sev-ne-statute-57-703.md", "quote": "shall be paid at the rate of three percent of the value of nonstripper oil and natural gas, except that oil produced from properties producing stripper oil shall be subject to a two percent severance tax", "supports": "oil_rate" }, { "file": "sources/sev-ne-statute-57-701.md", "quote": "Stripper oil shall mean oil produced from a property where the base production level is ten or fewer barrels per day", "supports": "oil_rate" }, { "file": "sources/sev-ne-statute-57-919.md", "quote": "The commission shall by order fix the amount of such charge in the first instance and may, from time to time, reduce or increase the amount thereof", "supports": "gas_rate" }, { "file": "sources/sev-ne-statute-57-703.md", "quote": "The value of oil and natural gas shall be computed immediately after such severance at the place where the same were severed.", "supports": "base" }, { "file": "sources/sev-ne-statute-57-919.md", "quote": "(a) The interest of the United States of America and the interest of the State of Nebraska and the political subdivisions thereof in any oil or gas or in the proceeds thereof", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ne-statute-57-919.md", "quote": "(c) oil and gas used in producing operations or for repressuring or recycling purposes", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-ne-statute-57-919.md", "quote": "The persons owning an interest, a working interest, a royalty interest, payments out of production, or any other interest in the oil and gas, or in the proceeds thereof, subject to the charge provided for in this section shall be liable to the producer for such charge in proportion to their ownership", "supports": "royalty_owner_note" }, { "file": "sources/sev-ne-statute-57-919.md", "quote": "required to deduct from any amounts due the persons owning an interest in the oil and gas or in the proceeds thereof at the time of production the proportionate amount of such charge before making payment to such persons", "supports": "royalty_owner_note" }, { "file": "sources/sev-ne-statute-57-702.md", "quote": "Be paid by (i) the first purchaser, if such oil or natural gas is sold in the state, or (ii) the person severing such oil or gas if such oil or natural gas is sold outside the state", "supports": "royalty_owner_note" }, { "file": "sources/sev-ne-statute-57-703.md", "quote": "Laws 1955, c. 219, § 3, p. 611; Laws 1981, LB 257, § 1; Laws 1983, LB 228, § 3.", "supports": "effective_or_as_of" } ] }, { "abbr": "SD", "state": "South Dakota", "levy_name": "Energy minerals severance tax (SDCL 10-39A-1); conservation tax on severance of energy minerals (SDCL 10-39B-2)", "oil_rate": "Severance tax 4.5% of taxable value, plus conservation tax of 2.4 mills (0.24%) of taxable value.", "gas_rate": "Severance tax 4.5% of taxable value, plus conservation tax of 2.4 mills (0.24%) of taxable value. Natural gas is an energy mineral under SDCL 10-39A-1.1.", "base": "Taxable value: the sale price of energy minerals sold, or the market value of minerals severed and saved but not sold, in each case less any rental or royalty payment belonging to the United States, the state or its political subdivisions; where there is a posted field price at the point of production, that price. The tax applies when the mineral is sold or consumed, whichever occurs first.", "key_exemptions_or_reduced_rates": [ "Rental and royalty payments belonging to the United States, the state or its political subdivisions are deducted from taxable value.", "The conservation tax is paid by the operator, who may not pass it on to the owner of the energy minerals." ], "ad_valorem_note": "SDCL 10-39A-7 says the severance tax is in lieu of other occupational, excise, income, privilege, franchise and mineral taxes levied by the state, but is not in lieu of sales, use, and property taxes.", "royalty_owner_note": "Owners, defined to include landowner royalty and overriding royalty owners, designate an operator who withholds the severance tax from each owner's distributions and pays it to the state, subject to contrary contract terms; the conservation tax may not be passed on to owners.", "effective_or_as_of": "Codified Laws read on sdlegislature.gov October 1, 2026; SDCL 10-39A-1 last amended by SL 2008, ch 37 and SDCL 10-39B-2 last amended by SL 2021, ch 49.", "source": { "url": "https://sdlegislature.gov/api/Statutes/10-39A-1.html", "publisher": "South Dakota Legislature, Legislative Research Council (Codified Laws)", "type": "official_statute", "pinpoint": "SDCL 10-39A-1, 10-39A-1.1, 10-39A-2, 10-39A-2.1, 10-39A-3.1, 10-39A-4, 10-39A-7", "accessed": "2026-10-01", "local_copy": "sources/sev-sd-sdcl-10-39a.md" }, "additional_sources": [ { "url": "https://sdlegislature.gov/api/Statutes/10-39B-2.html", "publisher": "South Dakota Legislature, Legislative Research Council (Codified Laws)", "type": "official_statute", "pinpoint": "SDCL 10-39B-2", "accessed": "2026-10-01", "local_copy": "sources/sev-sd-sdcl-10-39b-2.md" } ], "confidence": "high", "open_questions": [ "Whether South Dakota assesses producing oil and gas interests for local property tax was not read." ], "evidence": [ { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "there is imposed on the owner or operator of any energy mineral an excise tax, to be termed a \"severance tax,\" equal to four and one-half percent of the taxable value", "supports": "levy_name" }, { "file": "sources/sev-sd-sdcl-10-39b-2.md", "quote": "an excise tax, to be known as a conservation tax, equal to two and four-tenths mills of the taxable value of any energy minerals severed and saved", "supports": "levy_name" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "equal to four and one-half percent of the taxable value of any energy minerals severed and saved by or for the owner or operator", "supports": "oil_rate" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "\"Energy minerals,\" any mineral fuel including coal, lignite, petroleum, oil, natural gas, uranium, and thorium", "supports": "gas_rate" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "the taxable value of any energy mineral which has been sold is the sale price of such mineral less any rental or royalty payment belonging to the United States or the State of South Dakota or its political subdivisions", "supports": "base" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "When any energy mineral has a posted field price at the point of productions, the taxable value of such mineral is the posted field price.", "supports": "base" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "An energy mineral is subject to the severance tax when it is sold or consumed, whichever occurs first.", "supports": "base" }, { "file": "sources/sev-sd-sdcl-10-39b-2.md", "quote": "The tax shall be paid by the operator as defined in subdivision 10-39A-1.1(3). An operator may not pass the tax on to the owner of the energy minerals.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "This tax is in lieu of all other occupational, excise, income, privilege, franchise taxes, and any other mineral taxes levied by the state, but is not in lieu of sales, use, and property taxes.", "supports": "ad_valorem_note" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "an owner of a landowner's royalty, of an overriding royalty, or of profits and working interests, or any combination thereof", "supports": "royalty_owner_note" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "shall be withheld from distributions that would otherwise be made to each owner by the operator for payment to the state", "supports": "royalty_owner_note" }, { "file": "sources/sev-sd-sdcl-10-39a.md", "quote": "Source: SL 1977, ch 93, § 1; SL 1978, ch 81, § 1; SL 1979, ch 78, § 1; SL 2008, ch 37, § 94.", "supports": "effective_or_as_of" }, { "file": "sources/sev-sd-sdcl-10-39b-2.md", "quote": "SL 2021, ch 1 (Ex. Ord. 21-3), § 14, eff. Apr. 19, 2021; SL 2021, ch 49, § 9.", "supports": "effective_or_as_of" } ] }, { "abbr": "IL", "state": "Illinois", "levy_name": "Tax under the Illinois Hydraulic Fracturing Tax Act (35 ILCS 450/2-15), which applies only to oil and gas from wells permitted, or required to be permitted, under the Hydraulic Fracturing Regulatory Act. No other state production tax was identified in the sources read.", "oil_rate": "3% of value for 24 months from the month of first production; thereafter by average daily production of the well in the month: less than 25 barrels 3%, 25 to less than 50 barrels 4%, 50 to less than 100 barrels 5%, 100 barrels or more 6%.", "gas_rate": "3% of value for 24 months from the month of first production; thereafter 6% of value.", "base": "Value: the sale price of the oil or gas when removed from the production unit, or a value the Department of Revenue sets from cash prices for like quality oil or gas when there is no cash sale or the sale price is not indicative of market price. Liability accrues when the oil or gas is removed from the production unit.", "key_exemptions_or_reduced_rates": [ "Oil from a well whose average daily production is 15 barrels or less for the preceding 12 months is exempt.", "Gas injected to lift oil, recycle or repressure, gas used for fuel on the production unit, gas vented or flared, and gas lost through leaks, blowouts or accidents are exempt.", "The tax reaches only wells permitted, or required to be permitted, under the Hydraulic Fracturing Regulatory Act." ], "ad_valorem_note": null, "royalty_owner_note": "The tax is on producers, defined to include royalty and overriding royalty owners, in proportion to their beneficial interests, and the first purchaser deducts and withholds it from payments to producers and remits it.", "effective_or_as_of": "Applies to oil and gas removed on or after July 1, 2013; section 2-15 source note reads P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14 (Internet Archive copy April 3, 2025).", "source": { "url": "https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003504500K2-15", "publisher": "Illinois General Assembly (Illinois Compiled Statutes)", "type": "official_statute", "pinpoint": "35 ILCS 450/2-15", "accessed": "2026-10-01", "local_copy": "sources/sev-il-35-ilcs-450-2-15.md", "via": "Internet Archive snapshot April 3, 2025" }, "additional_sources": [ { "url": "https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003504500K2-10", "publisher": "Illinois General Assembly (Illinois Compiled Statutes)", "type": "official_statute", "pinpoint": "35 ILCS 450/2-10, definitions of Producer and Value", "accessed": "2026-10-01", "local_copy": "sources/sev-il-35-ilcs-450-2-10.md", "via": "Internet Archive snapshot April 1, 2025" }, { "url": "https://www.ilga.gov/legislation/ilcs/fulltext.asp?DocName=003504500K2-30", "publisher": "Illinois General Assembly (Illinois Compiled Statutes)", "type": "official_statute", "pinpoint": "35 ILCS 450/2-30(a)", "accessed": "2026-10-01", "local_copy": "sources/sev-il-35-ilcs-450-2-30.md", "via": "Internet Archive snapshot December 11, 2024" }, { "url": "https://www.ilga.gov/Documents/legislation/ilcs/documents/022507250K19.7.htm", "publisher": "Illinois General Assembly (Illinois Compiled Statutes)", "type": "official_statute", "pinpoint": "225 ILCS 725/19.7", "accessed": "2026-10-01", "local_copy": "sources/sev-il-225-ilcs-725-19-7.md", "via": "Internet Archive snapshot January 20, 2026" } ], "confidence": "medium", "open_questions": [ "ilga.gov was not available when AMR checked; 35 ILCS 450 sections were read from Internet Archive copies dated December 11, 2024 to April 3, 2025, older than July 1, 2025, so later amendments were not checked.", "No official source read says whether conventional oil and gas production outside the hydraulic fracturing act bears any Illinois state production tax. The Illinois Oil and Gas Act fee read (225 ILCS 725/19.7) is an annual well fee of $100 per well for the first 100 wells and $75 for each well over 100, not a production tax.", "Whether producing oil and gas interests are assessed for local property tax in Illinois was not read." ], "evidence": [ { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "there is hereby imposed a tax upon the severance and production of oil or gas from a well on a production unit in this State permitted, or required to be permitted, under the Illinois Hydraulic Fracturing Regulatory Act", "supports": "levy_name" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "For a period of 24 months from the month in which oil or gas was first produced from the well, the rate of tax shall be 3% of the value of the oil or gas severed", "supports": "oil_rate" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "well during the month is 25 or more barrels but less than 50 barrels, 4% of the value of the oil severed from the earth or water", "supports": "oil_rate" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "well during the month is 100 or more barrels, 6% of the value of the oil severed from the earth or water", "supports": "oil_rate" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "(2) For gas, 6% of the value of the gas severed from", "supports": "gas_rate" }, { "file": "sources/sev-il-35-ilcs-450-2-10.md", "quote": "\"Value\" means the sale price of oil or gas at the time of removal of the oil or gas from the production unit", "supports": "base" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "The liability for the tax accrues at the time the oil or gas is removed from the production unit.", "supports": "base" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "Oil produced from a well whose average daily production is 15 barrels or less for the 12-month period immediately preceding the production is exempt from the tax imposed by this Act.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "gas injected into the earth for the purpose of lifting oil, recycling, or repressuring; gas used for fuel in connection with the operation and development for, or production of, oil or gas in the production unit where severed", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "If a well is required to be permitted under the Hydraulic Fracturing Regulatory Act, the tax imposed by this Section applies, whether or not a permit was obtained.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-il-35-ilcs-450-2-10.md", "quote": "including working interest owners, overriding royalty owners, or royalty owners", "supports": "royalty_owner_note" }, { "file": "sources/sev-il-35-ilcs-450-2-30.md", "quote": "The tax is upon the producers of such oil or gas in the proportion to their respective beneficial interests at the time of severance.", "supports": "royalty_owner_note" }, { "file": "sources/sev-il-35-ilcs-450-2-30.md", "quote": "The first purchaser of any oil or gas sold shall collect the amount of the tax due from the producers by deducting and withholding such amount from any payments made by such purchaser to the producers", "supports": "royalty_owner_note" }, { "file": "sources/sev-il-35-ilcs-450-2-15.md", "quote": "(Source: P.A. 98-22, eff. 6-17-13; 98-756, eff. 7-16-14.)", "supports": "effective_or_as_of" }, { "file": "sources/sev-il-225-ilcs-725-19-7.md", "quote": "$100 per well for the first 100 wells and a $75 fee for each well in excess of 100", "supports": "open_questions" } ] }, { "abbr": "IN", "state": "Indiana", "levy_name": "Petroleum severance tax (IC 6-8-1)", "oil_rate": "Indiana DOR lists 1% of the value of petroleum and $0.24 per barrel of oil; the statute (2014 archive copy of IC 6-8-1-8) imposes the greater of 1% of value or $0.24 per barrel.", "gas_rate": "Indiana DOR lists 1% of the value of petroleum and $0.03 per 1,000 cubic feet of natural gas; the statute (2014 archive copy of IC 6-8-1-8) imposes the greater of 1% of value or $0.03 per MCF.", "base": "Value: the price paid or offered for petroleum of like grade or gravity in the field or pool where the well is located, or as determined under Department of Revenue rules; the tax is imposed at severance on all producers and owners.", "key_exemptions_or_reduced_rates": [ "Gas from a well that is used to pump or treat the well is not taxed.", "Gas piped to a landowner's private buildings for the landowner's own use is not taxed." ], "ad_valorem_note": "IC 6-8-1-18 (2014 archive copy) says the petroleum severance tax is in addition to all other taxes, excises and fees, so it is not in lieu of property tax; how Indiana assesses oil and gas interests for property tax was not read.", "royalty_owner_note": "The tax is imposed on all producers and owners, owners include royalty, overriding royalty and working interest owners, and a person who reports and pays the tax deducts it from amounts due the owners (IC 6-8-1-7, 6-8-1-8, 6-8-1-11, 2014 archive copy).", "effective_or_as_of": "DOR miscellaneous tax rates page read October 1, 2026 (it shows 2026 to 2027 rates for other taxes); the rate section IC 6-8-1-8 carries the note As amended by P.L.109-1988 in the 2014 archive copy.", "source": { "url": "https://www.in.gov/dor/resources/tax-rates-and-reports/rates-fees-and-penalties/miscellaneous-tax-rates/", "publisher": "Indiana Department of Revenue", "type": "official_agency", "pinpoint": "Miscellaneous Tax Rates, Petroleum Severance Tax entry", "accessed": "2026-10-01", "local_copy": "sources/sev-in-dor-misc-tax-rates.md" }, "additional_sources": [ { "url": "http://www.in.gov/legislative/ic/code/title6/ar8/ch1.html", "publisher": "Indiana Legislative Services Agency, Office of Code Revision (Indiana Code)", "type": "official_statute", "pinpoint": "IC 6-8-1-4, 6-8-1-7, 6-8-1-8, 6-8-1-11, 6-8-1-18", "accessed": "2026-10-01", "local_copy": "sources/sev-in-ic-6-8-1-2014.md", "via": "Internet Archive snapshot April 6, 2014" } ], "confidence": "medium", "open_questions": [ "iga.in.gov was not available when AMR checked; IC 6-8-1 was read only from an Internet Archive copy dated April 6, 2014, which is stale.", "The current DOR page lists the percentage and the per unit amounts without saying they are alternatives; the greater of rule comes from the 2014 statute copy and was not confirmed in current text.", "How Indiana assesses producing oil and gas interests for local property tax was not read." ], "evidence": [ { "file": "sources/sev-in-dor-misc-tax-rates.md", "quote": "Petroleum Severance Tax Petroleum 1% of the value Natural gas $0.03 per 1,000 cubic feet Oil $0.24 per barrel", "supports": "levy_name" }, { "file": "sources/sev-in-dor-misc-tax-rates.md", "quote": "Oil $0.24 per barrel", "supports": "oil_rate" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "Sec. 8. A tax at a rate equal to the greater of: (1) one percent (1%) of the value of the petroleum; or (2) three cents ($0.03) per one thousand (1,000) cubic feet (MCF) for natural gas and twenty-four cents ($0.24) per barrel for oil;", "supports": "oil_rate" }, { "file": "sources/sev-in-dor-misc-tax-rates.md", "quote": "Natural gas $0.03 per 1,000 cubic feet", "supports": "gas_rate" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "\"value\" means the price paid or offered to be paid for petroleum of a like grade or gravity in the field or pool in which such well is located", "supports": "base" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "is hereby imposed as of the time of the severance of such petroleum from the land, upon all producers and owners thereof", "supports": "base" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "except when the gas from any well is used to pump or treat the same or when such gas is piped to a landowner's private buildings for the landowner's own use", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "The tax imposed by this chapter shall be in addition to all other taxes, excises, and fees levied under any other statute.", "supports": "ad_valorem_note" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "includes the owners of royalties, excess royalty, overriding royalty, mineral rights, or working interest", "supports": "royalty_owner_note" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "A person reporting and paying a tax levied under this chapter is entitled to be reimbursed by the owner or owners immediately upon such payment and shall deduct the amount of the payment from anything due to the owners.", "supports": "royalty_owner_note" }, { "file": "sources/sev-in-dor-misc-tax-rates.md", "quote": "From July 1, 2026, to June 30, 2027, the Gasoline Tax rate is $0.37 per gallon.", "supports": "effective_or_as_of" }, { "file": "sources/sev-in-ic-6-8-1-2014.md", "quote": "(Formerly: Acts 1947, c.278, s.8.) As amended by P.L.109-1988, SEC.12.", "supports": "effective_or_as_of" } ] }, { "abbr": "VA", "state": "Virginia", "levy_name": "No state severance tax was identified in the sources read. Counties and cities may levy local license (severance) taxes on gas: the local gas severance tax (Va. Code 58.1-3712), the local gas road improvement and Virginia Coalfield Economic Development Authority tax (58.1-3713), and an additional local tax on gas (58.1-3713.4). The former local oil severance tax authority (58.1-3712.1) was repealed by Acts 2016, c. 305.", "oil_rate": "No current local oil severance tax authority was found: Va. Code 58.1-3712.1, which allowed counties and cities a license tax of one-half of one percent of gross receipts from oil, was repealed by Acts 2016, c. 305.", "gas_rate": "Local option, set by each county or city: up to 1% of gross receipts under 58.1-3712, up to 1% under 58.1-3713 (no tax under 58.1-3713 on or after January 1, 2028), and up to an additional 1% under 58.1-3713.4.", "base": "Gross receipts from the sale of gases severed in the county or city, measured as fair market value when the gas is used or sold for use there or placed in transit for shipment.", "key_exemptions_or_reduced_rates": [ "Producers severing gas in connection with coal mining may not deduct depreciation, compression, marketing fees, overhead, maintenance, transportation fees or personal property taxes in computing fair market value.", "The 58.1-3713 road improvement tax may not be imposed on or after January 1, 2028.", "A commissioner of the revenue may agree with a taxpayer on how fair market value is calculated." ], "ad_valorem_note": null, "royalty_owner_note": null, "effective_or_as_of": "Code of Virginia read on law.lis.virginia.gov October 1, 2026; 58.1-3713 was last amended by 2025, c. 116 and 58.1-3712 by 2014, cc. 48, 179.", "source": { "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter37/section58.1-3712/", "publisher": "Virginia General Assembly, Legislative Information System (Code of Virginia)", "type": "official_statute", "pinpoint": "Va. Code 58.1-3712", "accessed": "2026-10-01", "local_copy": "sources/sev-va-code-58-1-3712.md" }, "additional_sources": [ { "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter37/section58.1-3713/", "publisher": "Virginia General Assembly, Legislative Information System (Code of Virginia)", "type": "official_statute", "pinpoint": "Va. Code 58.1-3713(A) and (C)", "accessed": "2026-10-01", "local_copy": "sources/sev-va-code-58-1-3713.md" }, { "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter37/section58.1-3713.4/", "publisher": "Virginia General Assembly, Legislative Information System (Code of Virginia)", "type": "official_statute", "pinpoint": "Va. Code 58.1-3713.4", "accessed": "2026-10-01", "local_copy": "sources/sev-va-code-58-1-3713-4.md" }, { "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter37/section58.1-3712.1/", "publisher": "Virginia General Assembly, Legislative Information System (Code of Virginia)", "type": "official_statute", "pinpoint": "Va. Code 58.1-3712.1, repeal note", "accessed": "2026-10-01", "local_copy": "sources/sev-va-code-58-1-3712-1.md" }, { "url": "https://law.lis.virginia.gov/vacode/title58.1/chapter37/section58.1-3712.1/", "publisher": "Virginia General Assembly, Legislative Information System (Code of Virginia)", "type": "official_statute", "pinpoint": "Va. Code 58.1-3712.1 as it read in 2015", "accessed": "2026-10-01", "local_copy": "sources/sev-va-code-58-1-3712-1-2015.md", "via": "Internet Archive snapshot October 25, 2015" } ], "confidence": "medium", "open_questions": [ "No Virginia Tax or Code source read states outright that Virginia has no state level severance tax on oil or gas; the statement rests on the local authorizing statutes read.", "Which counties and cities currently levy the gas taxes, and at what rates, was not read.", "Whether producing oil and gas or mineral interests are assessed for local real property tax in Virginia was not read.", "Who bears or withholds the local gas taxes as between operators and royalty owners was not read." ], "evidence": [ { "file": "sources/sev-va-code-58-1-3712.md", "quote": "The governing body of any county or city may levy a license tax on every person engaging in the business of severing gases from the earth.", "supports": "levy_name" }, { "file": "sources/sev-va-code-58-1-3713.md", "quote": "In addition to the taxes authorized under § 58.1-3712, any county or city may adopt a license tax on every person engaging in the business of severing gases from the earth.", "supports": "levy_name" }, { "file": "sources/sev-va-code-58-1-3713-4.md", "quote": "a county or city may levy an additional license tax on every person engaging in the business of severing gases from the earth", "supports": "levy_name" }, { "file": "sources/sev-va-code-58-1-3712-1.md", "quote": "Repealed by Acts 2016, c. 305, cl. 2.", "supports": "oil_rate" }, { "file": "sources/sev-va-code-58-1-3712-1-2015.md", "quote": "The governing body of any county or city may levy a license tax on every person engaging in the business of severing oil from the earth. Such tax shall be at a rate equal to one-half of one percent", "supports": "oil_rate" }, { "file": "sources/sev-va-code-58-1-3712.md", "quote": "Such tax shall be at a rate not to exceed one percent of the gross receipts from the sale of gases severed within such county.", "supports": "gas_rate" }, { "file": "sources/sev-va-code-58-1-3713.md", "quote": "The rate of such tax shall not exceed one percent.", "supports": "gas_rate" }, { "file": "sources/sev-va-code-58-1-3713.md", "quote": "No tax shall be imposed under this section on or after January 1, 2028.", "supports": "gas_rate" }, { "file": "sources/sev-va-code-58-1-3713-4.md", "quote": "The license tax shall be at a rate not to exceed one percent of the gross receipts from the sale of gases severed within the county or city.", "supports": "gas_rate" }, { "file": "sources/sev-va-code-58-1-3712.md", "quote": "Such gross receipts shall be the fair market value measured at the time such gases are utilized or sold for utilization in such county or city or at the time they are placed in transit for shipment therefrom", "supports": "base" }, { "file": "sources/sev-va-code-58-1-3712.md", "quote": "no person engaging in the production and operation of severing gases from the earth in connection with coal mining shall be allowed to take deductions, including but not limited to, depreciation, compression, marketing fees, overhead, maintenance, transportation fees, and personal property taxes", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-va-code-58-1-3712.md", "quote": "The commissioner of the revenue of any county or city is authorized to enter into agreements with any taxpayer pertaining to the calculation of the fair market value of gases under this section.", "supports": "key_exemptions_or_reduced_rates" }, { "file": "sources/sev-va-code-58-1-3713.md", "quote": "2021, Sp. Sess. I, c. 430; 2023, cc. 224, 225; 2025, c. 116.", "supports": "effective_or_as_of" }, { "file": "sources/sev-va-code-58-1-3712.md", "quote": "2009, c. 770; 2013, cc. 305, 618; 2014, cc. 48, 179.", "supports": "effective_or_as_of" } ] } ], "federal": { "doc": "AMR tax review, federal oil and gas royalty rates", "status": "verified against official text, not legal review", "as_of": "2026-10-01", "scope": "Royalty the United States charges its own lessees on federal onshore (Mineral Leasing Act) and offshore (Outer Continental Shelf Lands Act) oil and gas leases. It does not apply to private or state owned minerals.", "citation_note": "The offshore rate is in 43 U.S.C. 1337(a)(1) (Outer Continental Shelf Lands Act s. 8), not 30 U.S.C. 1337. uscode.house.gov was under maintenance on October 1, 2026, so the codified text is the govinfo 2024 edition (current through the IRA) read together with the amending text of Pub. L. 119-21.", "onshore": { "statute": "Mineral Leasing Act s. 17, 30 U.S.C. 226; regulation 43 CFR 3103.31", "rate_history": [ { "id": "before_IRA", "leases_covered": "Onshore federal leases issued before August 16, 2022. Each keeps the rate prescribed in the lease or in the regulations at issuance.", "rate": "Competitive leases: not less than 12.5%, a statutory floor, not a fixed rate. Noncompetitive leases: 12.5% (12 1/2 per centum).", "legal_basis": "30 U.S.C. 226(b)(1)(A) 'at a rate of not less than 12.5' percent and 226(c) as in force before Pub. L. 117-169; before the 1987 Reform Act the competitive floor was 'not less than 12 1/2 per centum' and noncompetitive leases paid '12 1/2 per centum'; the Act of Aug. 8, 1946 set 12 1/2 per cent for lands outside a known geological structure.", "effective": "Rate set at issuance; the 12.5% floor is shown in the code history from the 1946 Act through August 16, 2022. Earlier history (1920 to 1946) was not read.", "source": { "url": "https://www.govinfo.gov/content/pkg/USCODE-2024-title30/html/USCODE-2024-title30-chap3A-subchapIV-sec226.htm", "publisher": "U.S. Government Publishing Office (govinfo), United States Code 2024 Edition", "type": "official_statute", "pinpoint": "30 U.S.C. 226(b)(1)(A) text and Amendments notes for 2022, 1987 and 1946 (2024 edition, reflects the IRA, predates Pub. L. 119-21)", "accessed": "2026-10-01", "local_copy": "sources/fed-usc-30-226-2024-edition.md" }, "additional_sources": [ { "url": "https://www.ecfr.gov/api/versioner/v1/full/2026-06-28/title-43.xml?section=3103.31", "publisher": "Electronic Code of Federal Regulations, Office of the Federal Register", "type": "official_agency", "pinpoint": "43 CFR 3103.31(a)(1) to (5) as in force June 28, 2026, the IRA era text", "accessed": "2026-10-01", "local_copy": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-06-28.md" } ], "evidence": [ { "file": "sources/fed-usc-30-226-2024-edition.md", "quote": "substituted \"at a rate of not less than 162/3\" for \"at a rate of not less than 12.5\"", "supports": "rate" }, { "file": "sources/fed-usc-30-226-2024-edition.md", "quote": "which shall be not less than 12½ per centum in amount or value of the production removed or sold from the lease", "supports": "rate" }, { "file": "sources/fed-usc-30-226-2024-edition.md", "quote": "Such leases shall be conditioned upon the payment by the lessee of a royalty of 12½ per centum in amount or value of the production removed or sold from the lease.", "supports": "rate" }, { "file": "sources/fed-usc-30-226-2024-edition.md", "quote": "a royalty rate of 12½ per cent without further provision as to lease terms or quality of production", "supports": "effective" }, { "file": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-06-28.md", "quote": "For leases issued before August 16, 2022, the rate prescribed in the lease or in applicable regulations at the time of lease issuance", "supports": "leases_covered" } ] }, { "id": "IRA", "leases_covered": "Onshore federal leases issued from August 16, 2022 until the IRA rate was repealed on July 4, 2025. These leases keep 16 2/3%: BLM states its 2026 rule does not amend existing leases with rates above 12.5%.", "rate": "16 2/3% (BLM regulations wrote it as 16.67%), fixed for leases issued during the 10 year period beginning August 16, 2022, and a 16 2/3% floor after that period. 12 1/2 per centum became 16 2/3 percent wherever it appeared in s. 226, including noncompetitive leases.", "legal_basis": "Inflation Reduction Act of 2022, Pub. L. 117-169 s. 50262(a)(1), amending 30 U.S.C. 226(b)(1)(A) and every '12 1/2 per centum' in s. 226; reinstatement condition raised to 20% by s. 50262(a)(2).", "effective": "August 16, 2022, the date of enactment (Pub. L. 117-169 approved August 16, 2022).", "source": { "url": "https://www.govinfo.gov/content/pkg/PLAW-117publ169/html/PLAW-117publ169.htm", "publisher": "U.S. Government Publishing Office (govinfo), Public Law 117-169, 136 Stat. 1818", "type": "official_statute", "pinpoint": "Pub. L. 117-169 s. 50261 and s. 50262(a), 136 Stat. 2056; approved August 16, 2022", "accessed": "2026-10-01", "local_copy": "sources/fed-pl-117-169-ira-sec-50261-50262a.md" }, "additional_sources": [ { "url": "https://www.govinfo.gov/content/pkg/USCODE-2024-title30/html/USCODE-2024-title30-chap3A-subchapIV-sec226.htm", "publisher": "U.S. Government Publishing Office (govinfo), United States Code 2024 Edition", "type": "official_statute", "pinpoint": "30 U.S.C. 226(b)(1)(A) text and Amendments notes for 2022, 1987 and 1946 (2024 edition, reflects the IRA, predates Pub. L. 119-21)", "accessed": "2026-10-01", "local_copy": "sources/fed-usc-30-226-2024-edition.md" }, { "url": "https://www.ecfr.gov/api/versioner/v1/full/2026-06-28/title-43.xml?section=3103.31", "publisher": "Electronic Code of Federal Regulations, Office of the Federal Register", "type": "official_agency", "pinpoint": "43 CFR 3103.31(a)(1) to (5) as in force June 28, 2026, the IRA era text", "accessed": "2026-10-01", "local_copy": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-06-28.md" } ], "evidence": [ { "file": "sources/fed-pl-117-169-ira-sec-50261-50262a.md", "quote": "Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended", "supports": "legal_basis" }, { "file": "sources/fed-pl-117-169-ira-sec-50261-50262a.md", "quote": "by striking ``12\\1/2\\ per centum'' each place it appears and inserting ``16\\2/3\\ percent''", "supports": "rate" }, { "file": "sources/fed-pl-117-169-ira-sec-50261-50262a.md", "quote": "Approved August 16, 2022.", "supports": "effective" }, { "file": "sources/fed-usc-30-226-2024-edition.md", "quote": "in the case of a lease issued during the 10-year period beginning on August 16, 2022, 162/3 percent in amount or value of the production removed or sold from the lease", "supports": "rate" }, { "file": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-06-28.md", "quote": "For leases issued between August 16, 2022, and August 16, 2032, the royalty rate will be 16.67 percent", "supports": "leases_covered" }, { "file": "sources/fed-fr-2026-08280-blm-direct-final-rule.md", "quote": "This regulatory change does not amend existing oil and gas leases with royalty rates that are higher than 12.5 percent.", "supports": "leases_covered" } ] }, { "id": "OBBBA", "leases_covered": "Onshore federal leases issued after enactment of Pub. L. 119-21 on July 4, 2025 (BLM wording: leases 'issued after the enactment of the OBBB'). Not retroactive to leases already issued at 16 2/3%.", "rate": "Competitive leases: not less than 12.5%. Noncompetitive leases, which the Act revived: 12.5%. Reinstated leases: the new lease rate plus 4 points, plus 2 points for each later reinstatement, never below 16.67%.", "legal_basis": "One Big Beautiful Bill Act, Pub. L. 119-21 s. 50101(a)(1) repealed IRA s. 50262(a) and restored the prior text 'as if that subsection had not been enacted into law'; s. 50101(a)(2) did the same for IRA s. 50262(e) (noncompetitive leasing). The Act states no rate and no applicability date of its own; the 12.5% comes from the restored text of 30 U.S.C. 226.", "effective": "July 4, 2025, the date of enactment (Pub. L. 119-21 approved July 4, 2025). BLM conformed its regulation effective June 29, 2026 (next entry).", "source": { "url": "https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm", "publisher": "U.S. Government Publishing Office (govinfo), Public Law 119-21, 139 Stat. 72", "type": "official_statute", "pinpoint": "Pub. L. 119-21 s. 50101(a)(1) and (a)(2), 139 Stat. 137; s. 50102(b)(1)(C) and (d), 139 Stat. 141 to 142; approved July 4, 2025", "accessed": "2026-10-01", "local_copy": "sources/fed-pl-119-21-obbba-sec-50101-50103.md" }, "additional_sources": [ { "url": "https://www.federalregister.gov/documents/2026/04/29/2026-08280/revisions-to-regulations-regarding-oil-and-gas-leasing-fees-rentals-and-royalties", "publisher": "Federal Register, Bureau of Land Management, 91 FR 23017, FR Doc. 2026-08280, RIN 1004-AF41", "type": "official_agency", "pinpoint": "DATES; SUPPLEMENTARY INFORMATION; amendment 2 revising 43 CFR 3103.31(a), 91 FR 23018 to 23020", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2026-08280-blm-direct-final-rule.md" }, { "url": "https://www.ecfr.gov/api/versioner/v1/full/2026-09-29/title-43.xml?section=3103.31", "publisher": "Electronic Code of Federal Regulations, Office of the Federal Register", "type": "official_agency", "pinpoint": "43 CFR 3103.31(a) as in force September 29, 2026, source note citing 91 FR 23020 and 91 FR 29920", "accessed": "2026-10-01", "local_copy": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-09-29.md" }, { "url": "https://www.law.cornell.edu/uscode/text/30/226", "publisher": "Legal Information Institute, Cornell Law School", "type": "secondary", "pinpoint": "30 U.S.C. 226(b)(1)(A) and (c) as currently shown, with notes that Pub. L. 119-21 s. 50101 repealed the 2022 amendments (cross check only)", "accessed": "2026-10-01", "local_copy": "sources/fed-lii-30-226-secondary-crosscheck.md" } ], "evidence": [ { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "Subsection (a) of section 50262 of Public Law 117-169", "supports": "legal_basis" }, { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "is repealed, and any provision of law amended or repealed by that subsection is restored or revived as if that subsection had not been enacted into law.", "supports": "legal_basis" }, { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "Subsection (e) of section 50262 of Public Law 117-169", "supports": "legal_basis" }, { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "Approved July 4, 2025.", "supports": "effective" }, { "file": "sources/fed-fr-2026-08280-blm-direct-final-rule.md", "quote": "the applicable royalty provision in the MLA is once again set at an amount of not less than 12.5 percent.", "supports": "rate" }, { "file": "sources/fed-fr-2026-08280-blm-direct-final-rule.md", "quote": "rate required for production from Federal oil and gas leases issued after the enactment of the OBBB", "supports": "leases_covered" }, { "file": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-09-29.md", "quote": "For all non-competitive leases, a royalty rate of 12.5 percent.", "supports": "rate" }, { "file": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-09-29.md", "quote": "In no cases will the royalty rate on the reinstated lease be less than 16.67 percent.", "supports": "rate" } ] }, { "id": "BLM_rule_2026", "what": "BLM direct final rule conforming 43 CFR 3103.31(a) to the OBBBA: 'not less than 12.5 percent' for leases issued after enactment, 12.5% for noncompetitive leases, IRA paragraphs on 16.67% removed.", "citation": "91 FR 23017 (April 29, 2026), FR Doc. 2026-08280, RIN 1004-AF41, Docket BLM-2025-0138; correction of the section heading at 91 FR 29920 (May 21, 2026), FR Doc. 2026-10164.", "effective": "June 29, 2026, unless significant adverse comments arrived by May 29, 2026. The eCFR text in force on September 29, 2026 carries the amendment (source note cites 91 FR 23020 and 91 FR 29920), and a Federal Register API search on October 1, 2026 for RIN 1004-AF41 and docket BLM-2025-0138 returned only these two documents, no withdrawal.", "leases_covered": "Production from federal oil and gas leases issued after the enactment of the OBBBA. Existing leases with rates above 12.5% are not amended.", "source": { "url": "https://www.federalregister.gov/documents/2026/04/29/2026-08280/revisions-to-regulations-regarding-oil-and-gas-leasing-fees-rentals-and-royalties", "publisher": "Federal Register, Bureau of Land Management, 91 FR 23017, FR Doc. 2026-08280, RIN 1004-AF41", "type": "official_agency", "pinpoint": "DATES; SUPPLEMENTARY INFORMATION; amendment 2 revising 43 CFR 3103.31(a), 91 FR 23018 to 23020", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2026-08280-blm-direct-final-rule.md" }, "additional_sources": [ { "url": "https://www.federalregister.gov/documents/2026/05/21/2026-10164/revisions-to-regulations-regarding-oil-and-gas-leasing-fees-rentals-and-royalties-correction", "publisher": "Federal Register, Bureau of Land Management, 91 FR 29920, FR Doc. 2026-10164", "type": "official_agency", "pinpoint": "DATES and SUPPLEMENTARY INFORMATION (corrects the section heading only)", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2026-10164-blm-dfr-correction.md" }, { "url": "https://www.ecfr.gov/api/versioner/v1/full/2026-09-29/title-43.xml?section=3103.31", "publisher": "Electronic Code of Federal Regulations, Office of the Federal Register", "type": "official_agency", "pinpoint": "43 CFR 3103.31(a) as in force September 29, 2026, source note citing 91 FR 23020 and 91 FR 29920", "accessed": "2026-10-01", "local_copy": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-09-29.md" }, { "url": "https://www.ecfr.gov/api/versioner/v1/full/2026-06-28/title-43.xml?section=3103.31", "publisher": "Electronic Code of Federal Regulations, Office of the Federal Register", "type": "official_agency", "pinpoint": "43 CFR 3103.31(a)(1) to (5) as in force June 28, 2026, the IRA era text", "accessed": "2026-10-01", "local_copy": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-06-28.md" } ], "evidence": [ { "file": "sources/fed-fr-2026-08280-blm-direct-final-rule.md", "quote": "The final rule is effective on June 29, 2026, unless significant adverse comments are received by May 29, 2026.", "supports": "effective" }, { "file": "sources/fed-fr-2026-08280-blm-direct-final-rule.md", "quote": "The royalty rate prescribed in the lease will be not less than 12.5 percent.", "supports": "what" }, { "file": "sources/fed-ecfr-43-cfr-3103-31-as-of-2026-09-29.md", "quote": "as amended at 91 FR 23020, Apr. 29, 2026; 91 FR 29920, May 21, 2026", "supports": "effective" }, { "file": "sources/fed-fr-2026-10164-blm-dfr-correction.md", "quote": "the section heading is corrected to read ``Sec. 3103.31 Royalty on production.''", "supports": "citation" } ] } ] }, "offshore": { "statute": "Outer Continental Shelf Lands Act s. 8(a)(1), 43 U.S.C. 1337(a)(1); BOEM sets the rate for each sale in its final notice of sale", "rate_history": [ { "id": "before_IRA", "leases_covered": "OCS leases issued from sales before August 16, 2022. Each lease carries the rate fixed in its sale notice.", "rate": "Statutory floor of not less than 12 1/2 per centum; the rate of each sale was set by BOEM above that floor or at it. Rates of individual pre 2022 sales were not read.", "legal_basis": "43 U.S.C. 1337(a)(1)(A), (C), (F), (H) before Pub. L. 117-169 s. 50261", "effective": null, "source": { "url": "https://www.govinfo.gov/content/pkg/USCODE-2024-title43/html/USCODE-2024-title43-chap29-subchapIII-sec1337.htm", "publisher": "U.S. Government Publishing Office (govinfo), United States Code 2024 Edition", "type": "official_statute", "pinpoint": "43 U.S.C. 1337(a)(1)(A) to (H) and the 2022 Amendments note (2024 edition, predates Pub. L. 119-21)", "accessed": "2026-10-01", "local_copy": "sources/fed-usc-43-1337-2024-edition.md" }, "evidence": [ { "file": "sources/fed-usc-43-1337-2024-edition.md", "quote": "for \"not less than 12½ per centum\"", "supports": "rate" } ] }, { "id": "IRA", "leases_covered": "OCS leases issued during the 10 year period beginning August 16, 2022, until repeal on July 4, 2025 (repeal is not stated to reach leases already issued).", "rate": "Not less than 16 2/3% and not more than 18 3/4% during the 10 year period, not less than 16 2/3% after it. Lease Sale 261 (Gulf of Mexico, held September 27, 2023) set 18 3/4% for all leases.", "legal_basis": "Pub. L. 117-169 s. 50261 amending 43 U.S.C. 1337(a)(1)", "effective": "2022-08-16", "source": { "url": "https://www.govinfo.gov/content/pkg/PLAW-117publ169/html/PLAW-117publ169.htm", "publisher": "U.S. Government Publishing Office (govinfo), Public Law 117-169, 136 Stat. 1818", "type": "official_statute", "pinpoint": "Pub. L. 117-169 s. 50261 and s. 50262(a), 136 Stat. 2056; approved August 16, 2022", "accessed": "2026-10-01", "local_copy": "sources/fed-pl-117-169-ira-sec-50261-50262a.md" }, "additional_sources": [ { "url": "https://www.govinfo.gov/content/pkg/USCODE-2024-title43/html/USCODE-2024-title43-chap29-subchapIII-sec1337.htm", "publisher": "U.S. Government Publishing Office (govinfo), United States Code 2024 Edition", "type": "official_statute", "pinpoint": "43 U.S.C. 1337(a)(1)(A) to (H) and the 2022 Amendments note (2024 edition, predates Pub. L. 119-21)", "accessed": "2026-10-01", "local_copy": "sources/fed-usc-43-1337-2024-edition.md" }, { "url": "https://www.federalregister.gov/documents/2023/08/25/2023-18342/gulf-of-mexico-outer-continental-shelf-oil-and-gas-lease-sale-261", "publisher": "Federal Register, Bureau of Ocean Energy Management, 88 FR 58300, FR Doc. 2023-18342", "type": "official_agency", "pinpoint": "Final notice of sale, Lease Sale 261, Royalty Rate", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2023-18342-boem-ls261-final-notice-of-sale.md" } ], "evidence": [ { "file": "sources/fed-pl-117-169-ira-sec-50261-50262a.md", "quote": "less than 16\\2/3\\ percent, but not more than 18\\3/4\\ percent, during the 10-year period", "supports": "rate" }, { "file": "sources/fed-usc-43-1337-2024-edition.md", "quote": "cash bonus bid with a royalty at not less than 162/3 percent, but not more than 18¾ percent, during the 10-year period beginning on August 16, 2022, and not less than 162/3 percent thereafter", "supports": "rate" }, { "file": "sources/fed-fr-2023-18342-boem-ls261-final-notice-of-sale.md", "quote": "18\\3/4\\ percent for all leases.", "supports": "rate" } ] }, { "id": "OBBBA", "leases_covered": "OCS leases issued after July 4, 2025, including the sales the Act mandates in the Gulf of America and Cook Inlet.", "rate": "Not less than 12 1/2% and not more than 16 2/3% (43 U.S.C. 1337(a)(1) as amended). For the mandated Gulf of America sales the Secretary must set the rate at not less than 12 1/2% and not greater than 16 2/3%. BOEM final notices of sale set 12 1/2% for blocks in all water depths in BBG1 (sale date December 10, 2025), BBG2 (March 11, 2026) and BBG3 (August 12, 2026), and 12.5% in Cook Inlet BBC1 (March 4, 2026).", "legal_basis": "Pub. L. 119-21 s. 50102(d)(1) repealed IRA s. 50261 and s. 50102(d)(2) inserted 'not less than 12 1/2 percent, but not more than 16 2/3 percent'; s. 50102(b)(1)(C) for the Gulf of America sales; s. 50102(b)(2)(A) applies Lease Sale 244 terms to Cook Inlet sales.", "effective": "2025-07-04", "source": { "url": "https://www.govinfo.gov/content/pkg/PLAW-119publ21/html/PLAW-119publ21.htm", "publisher": "U.S. Government Publishing Office (govinfo), Public Law 119-21, 139 Stat. 72", "type": "official_statute", "pinpoint": "Pub. L. 119-21 s. 50101(a)(1) and (a)(2), 139 Stat. 137; s. 50102(b)(1)(C) and (d), 139 Stat. 141 to 142; approved July 4, 2025", "accessed": "2026-10-01", "local_copy": "sources/fed-pl-119-21-obbba-sec-50101-50103.md" }, "additional_sources": [ { "url": "https://www.federalregister.gov/documents/2025/11/10/2025-19828/gulf-of-america-ocs-oil-and-gas-one-big-beautiful-bill-act-lease-sale-1", "publisher": "Federal Register, Bureau of Ocean Energy Management, 90 FR 50751, FR Doc. 2025-19828", "type": "official_agency", "pinpoint": "Final notice of sale BBG1, section III Royalty Rate, 90 FR 50755", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2025-19828-boem-bbg1-final-notice-of-sale.md" }, { "url": "https://www.federalregister.gov/documents/2026/02/05/2026-02289/gulf-of-america-outer-continental-shelf-oil-and-gas-one-big-beautiful-bill-act-lease-sale-2", "publisher": "Federal Register, Bureau of Ocean Energy Management, 91 FR 5251, FR Doc. 2026-02289", "type": "official_agency", "pinpoint": "Final notice of sale BBG2, Royalty Rate", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2026-02289-boem-bbg2-final-notice-of-sale.md" }, { "url": "https://www.federalregister.gov/documents/2026/07/08/2026-13779/gulf-of-america-outer-continental-shelf-oil-and-gas-one-big-beautiful-bill-act-lease-sale-3", "publisher": "Federal Register, Bureau of Ocean Energy Management, 91 FR 42238, FR Doc. 2026-13779", "type": "official_agency", "pinpoint": "Final notice of sale BBG3, Royalty Rate", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2026-13779-boem-bbg3-final-notice-of-sale.md" }, { "url": "https://www.federalregister.gov/documents/2026/02/02/2026-02094/cook-inlet-outer-continental-shelf-oil-and-gas-one-big-beautiful-bill-act-lease-sale-1", "publisher": "Federal Register, Bureau of Ocean Energy Management, 91 FR 4606, FR Doc. 2026-02094", "type": "official_agency", "pinpoint": "Final notice of sale BBC1 (Cook Inlet), Royalty Rate", "accessed": "2026-10-01", "local_copy": "sources/fed-fr-2026-02094-boem-cook-inlet-bbc1-final-notice-of-sale.md" } ], "evidence": [ { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "shall set the royalty rate at not less than 12\\1/2\\ percent but not greater than 16\\2/3\\ percent;", "supports": "rate" }, { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "Section 50261 of Public Law 117-169 (136 Stat. 2056) is repealed", "supports": "legal_basis" }, { "file": "sources/fed-pl-119-21-obbba-sec-50101-50103.md", "quote": "by striking ``not less than 12\\1/2\\ per centum'' and inserting ``not less than 12\\1/ 2\\ percent, but not more than 16\\2/3\\ percent,''", "supports": "rate" }, { "file": "sources/fed-fr-2025-19828-boem-bbg1-final-notice-of-sale.md", "quote": "12\\1/2\\ percent for blocks in all water depths.", "supports": "rate" }, { "file": "sources/fed-fr-2026-02289-boem-bbg2-final-notice-of-sale.md", "quote": "12\\1/2\\ percent for blocks in all water depths.", "supports": "rate" }, { "file": "sources/fed-fr-2026-13779-boem-bbg3-final-notice-of-sale.md", "quote": "12\\1/2\\ percent for blocks in all water depths.", "supports": "rate" }, { "file": "sources/fed-fr-2026-02094-boem-cook-inlet-bbc1-final-notice-of-sale.md", "quote": "the royalty rate is 12.5 percent.", "supports": "rate" } ] } ] }, "claims_check": [ { "live_claim": "The statutory minimum was a flat 12.5 percent for roughly a century.", "verdict": "imprecise", "verified_value": "From the 1946 Act to 2022 the statute set a floor of not less than 12.5% for competitive leases and a fixed 12.5% for noncompetitive leases. It was a minimum, not a flat rate. The 1920 to 1946 history was not read, so 'roughly a century' is unverified.", "source_type": "official_statute" }, { "live_claim": "The Inflation Reduction Act raised it to 16.67 percent in 2022.", "verdict": "correct, needs scope", "verified_value": "16 2/3% for onshore leases issued on or after August 16, 2022; leases issued before keep their rate, and leases issued from August 16, 2022 to July 4, 2025 keep 16 2/3%.", "source_type": "official_statute" }, { "live_claim": "The One Big Beautiful Bill Act then returned it to 12.5 percent for leases issued on or after July 4, 2025", "verdict": "substantially correct, reword", "verified_value": "Pub. L. 119-21 s. 50101(a)(1) restored the pre IRA text, a floor of not less than 12.5% (12.5% fixed for noncompetitive leases). BLM applies it to leases issued after enactment on July 4, 2025, and existing 16 2/3% leases are not changed.", "source_type": "official_statute" }, { "live_claim": "with a Bureau of Land Management rule effectuating the change effective June 29, 2026", "verdict": "correct", "verified_value": "Direct final rule 91 FR 23017 (April 29, 2026), effective June 29, 2026, in force in the eCFR on September 29, 2026.", "source_type": "official_agency" }, { "live_claim": "Offshore the rate is 18.75 percent", "verdict": "wrong for current law and new leases", "verified_value": "Since July 4, 2025 the statute sets 12 1/2% to 16 2/3% for new OCS leases, and BOEM's OBBBA sales from December 2025 use 12 1/2%. 18 3/4% applies only to existing leases from sales that set it, for example Lease Sale 261 in 2023.", "source_type": "official_statute" } ], "open_questions": [ "The current codified text of 30 U.S.C. 226 and 43 U.S.C. 1337 after Pub. L. 119-21 was read only as the 2024 govinfo edition plus the amending act (uscode.house.gov was under maintenance); the LII copy is a secondary cross check.", "The original 1920 Mineral Leasing Act royalty terms and the 1920 to 1946 history were not read.", "Whether BBG1, BBG2, BBG3 and BBC1 were held on the noticed dates and leases issued was not checked; the 12 1/2% is the rate the final notices of sale set.", "A broader BLM proposed rule 'Oil and Gas Leasing' (91 FR 38084, June 24, 2026, comments to August 24, 2026) was found but not read; no final rule from it appeared in the Federal Register by October 1, 2026." ] } }