Frequently Asked Questions
What resources are subject to severance tax?
Severance tax is levied on all resources severed or removed from the soil or water. This includes all forms of timber, including pulp woods, turpentine, and other forest products; oil, gas, natural gasoline, distillate, condensate, casinghead gasoline; minerals such as sulphur, salt, coal, lignite, and ores; marble, stone, sand, shells, and other natural deposits; and the salt content in brine.
Severances taxes are due when the resource is severed/produced, except for tax on oil which is due when it is sold.