Stripper Well/Marginal Property Information
Crude oil produced from oil wells classified as stripper or marginal may use the lower tax rate of 4% of gross cash market value.
To receive approval for “Marginal/Stripper” status, provide the Michigan Department of Treasury with the following information:
- Name, FEIN, and address of producer of wells
- Name, FEIN, and address of company remitting tax/submitting tax return (if different from producer of wells)
- Name of the well
- Permit number and PRU number
- Well Depth
- Production figures for 12 consecutive months
- Verification that well was producing at full capacity
- Copies of original returns
The Department will review information and respond in writing.
Bureau of Tax Policy, Severance Tax
P.O. Box 30474
Lansing, MI 48909-7974