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Severance Tax
Highlights
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The Michigan Severance Tax Act, MCL 205.301, levies a tax on oil and gas severed from the soil in Michigan. Producers or purchasers are required to report the oil and gas production, and the value, in a monthly return. Michigan severance tax returns must be filed monthly, by the 25th of the month following the production. Returns not filed timely are subject to the late filing penalty and interest provisions of the Michigan Revenue Act, MCL 205.1 et seq
| What You Need To Know
Tax Rates
Oil
6.6% of gross cash market value
Oil
Condensate
Marginal/Stripper Oil Well
4% of gross cash market value
Oil
Condensate
Gas
5% of gross cash market value
Gas
Natural Gas Liquids
Condensate
Oil & Gas Fee
2013
2012
2011
2010
2009
0.84 % of gross cash market value
0.92 % of gross cash market value
1.00 % of gross cash market value
0.29 % of gross cash market value
0.25 % of gross cash market value
| Most Commonly Used Forms |
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| Fillable Forms Disclaimer
Many tax forms can now be completed on-line for printing and mailing. Currently, there is no computation, validation, or verification of the information you enter, and you are still responsible for entering all required information. Instructions may require some information to be handwritten on the form (signatures, for example).
For security reasons, you should press the “Reset Form” button after printing your completed form to clear your personal data. This button is located on the top of right corner of the form.
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Returns
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Related Forms
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Other Helpful Information
Contact Information
Michigan Department of Treasury, Severance Tax, 517-636-4615
Email: TreasSeverance@michigan.gov
Mail Correspondence to:
Michigan Department of Treasury
Bureau of Tax Policy, Severance Tax
P.O. Box 30474
Lansing, MI 48909-7974
| Useful Links
Office of Oil, Gas, and Minerals, Department of Environmental Quality
| Severance Tax Related Revenue Administrative Bulletins (RABs)
Filing Severance Tax Returns
Liability of Common Purchaser
Liability – Audit Deficiencies
Notice to Common Purchaser of Marketing Deductions for Use in Determining Wellhead Value for Severance Tax Computations
Severance Taxation of Gas Used in Gas Injection Operations
Lower Severance Tax Rate on Marginal and Stripper Oil and Liquid Phase Condensate Production
Allowable Marketing Cost Deductions to Severance Tax
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