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Severance Tax

Highlights

• 2014 Severance Tax Returns now available

• 2014 Oil & Gas Fee is set at 0.92% (0.0092)

• 2014 Oil & Gas Fee Notice PDF icon


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
 
2014
2013
2012
2011
2010
0.92 % of gross cash market value
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
 
 
 
Most Commonly Used Forms
You will need Adobe Acrobat Reader installed to view the tax forms listed below.

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.




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)

RAB Number
Title
Native Gas
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
Lease Use Gas Taxability
Marketing Costs
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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