Treasury is reviewing the recently enacted tax law changes, including the new Marijuana Wholesale Tax. Developing clear and accurate information for tax stakeholders is our top priority. This guidance will be posted to our website in the coming weeks.
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.
Stripper Well Crude Oil | Oil produced and sold from a property whose maximum daily average production of crude oil per well during any consecutive 12-month period does not exceed 10 barrels. | ||||||||||
Marginal Property Crude Oil | A “property” whose daily average production (excluding condensate recovered in non-associated production) per well during any preceding consecutive 12-month period that did not exceed the number of barrels shown in the following table for the average completion depth. | ||||||||||
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- 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.
Mail Correspondence to: | Michigan Department of Treasury Bureau of Tax Policy, Severance Tax P.O. Box 30474 Lansing, MI 48909-7974 |