Taxes - Severance Tax

Severance Tax

2018 Current Year Fee

2018 Oil & Gas Fee is set at 1% (0.01)
2018 Oil and Gas Fee Notice

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

2017	1.00 % of gross cash market value
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

Related Resources

Gas Storage Field Report – Form 385
Stripper Well/Marginal Property Information
Return and Schedule Information
Office of Oil, Gas, and Minerals, Department of Environmental Quality
Nonferrous Metallic Minerals Extraction Severance Tax Act (MST)
The Nonferrous Metallic Minerals Extraction Severance Tax Act (MST), PA 410 of 2012, as amended, levies a specific tax on certain nonferrous metallic minerals for mineral producing property in this state.

Severance Tax Related Revenue Administrative Bulletins (RABs)

RAB Number

Title

1989-13

Native Gas

1989-14

Filing Severance Tax Returns

1989-16

Liability of Common Purchaser

1989-17

Liability – Audit Deficiencies

1989-19

Notice to Common Purchaser of Marketing Deductions for Use in Determining Wellhead Value for Severance Tax Computations

1989-20

Lease Use Gas Taxability

1992-5

Marketing Costs

1992-6

Severance Taxation of Gas Used in Gas Injection Operations

1992-8

Lower Severance Tax Rate on Marginal and Stripper Oil and Liquid Phase Condensate Production

1992-9

Allowable Marketing Cost Deductions to Severance Tax