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Severance Tax

Highlights


  • 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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