Severance Tax
Severance Tax2018 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
Condensate5% 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 NumberTitleNative GasFiling Severance Tax ReturnsLiability of Common PurchaserLiability – Audit DeficienciesNotice to Common Purchaser of Marketing Deductions for Use in Determining Wellhead Value for Severance Tax ComputationsLease Use Gas TaxabilityMarketing CostsSeverance Taxation of Gas Used in Gas Injection OperationsLower Severance Tax Rate on Marginal and Stripper Oil and Liquid Phase Condensate ProductionAllowable Marketing Cost Deductions to Severance Tax
