Severance Tax
Severance TaxAbout 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
2021 Current Year Fee
- 2021 Oil & Gas Fee is set at 1% (0.01)
- 2021 Oil and Gas Fee Notice
Oil & Gas Fee
2020 1.00 % of gross cash market value 2019 1.00 % of gross cash market value 2018 1.00 % of gross cash market value 2017 1.00 % of gross cash market value 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
Condensate5% 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 1989-20 Lease Use Gas Taxability 1992-6 Severance Taxation of Gas Used in Gas Injection 1992-8 Lower Severance Tax Rate on Marginal and Stripper Oil and Liquid Phase Condensate Production 2019-23 Allowable Marketing Cost Deductions to Severance Tax on Natural Gas
