Current Year Fee

About The Tax

  • 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

Tax Rates and Fees

  • Tax Rates

     

    Oil Oil Condensate 6.6% of gross cash market value
    Marginal/Stripper Oil Well Oil Condensate 4% of gross cash market value
    Gas Gas
    Natural Gas Liquids
    Condensate
    5% of gross cash market value

    Oil & Gas Fee

    2016 1.00 % of gross cash market value
    2015 0.82 % of gross cash market value
    2014 0.92 % of gross cash market value
    2013 0.84 % of gross cash market value
    2012 0.92 % of gross cash market value
  • 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