This article includes a list ofgeneral references, butit lacks sufficient correspondinginline citations. Please help toimprove this article byintroducing more precise citations.(March 2013) (Learn how and when to remove this message)

Part of a series on
Taxation
An aspect offiscal policy
Policies Economic justice Government revenue Property tax equalization Tax revenue Non-tax revenue Tax law Tax bracket Flat tax Tax threshold Taxation as theft Tax shift Tax cut Tax advantage Tax incentive Tax reform Double taxation Tax harmonization Tax competition Voluntary taxation Representation
Economics General Theory Price effect Excess burden Tax efficiency Tax incidence Laffer curve Optimal tax Fiscal illusion Theories Optimal capital income taxation Distribution of Tax Tax rate Flat Progressive Regressive Proportional
Collection Economic nexus in the United States Revenue service Revenue stamp Tax assessment Taxable income Tax lien Tax refund Tax shield Tax residence Tax preparation Tax protester Tax investigation Tax collector Tax withholding Private tax collection
Noncompliance Legaltax avoidance Base erosion and profit shifting (BEPS) Double Irish Single Malt CAIA Dutch Sandwich Estate planning Fuel dye Repatriation tax avoidance Share repurchase Tariff engineering Tax credit Tax deduction Tax exemption Taxpayer groups Tax holiday Tax inversion Tax farming Tax patent Tax shelter Illegaltax evasion Tax amnesty Black market Debtors' prison Tax exile Smuggling Tax resistance Transfer mispricing Unreported employment Locations Tax havens Corporate havens Offshore financial centres (OFCs) Offshore magic circle Conduit and sink OFCs Financial centres Financial Secrecy Index Major examples Ireland as a tax haven Ireland v. Commission Leprechaun economics Liechtenstein tax affair Luxembourg Leaks Offshore Leaks Paradise Papers Panama Papers Swiss Leaks United States as a tax haven Panama as a tax haven
Types Direct Indirect Per unit Ad valorem Aviation Airport improvement Landing Solidarity Capital gains Expatriation Consumption Departure Hotel Sales Stamp Television Tourist Value-added Digital goods Dividend Environmental tax Carbon Eco-tariff Landfill Natural resources consumption Severance Steering Stumpage Excise Alcohol Cigarette Fat Meat Sin Sugary drink Tobacco General Georgist Gift Gross receipts Hidden Hypothecated Income Inheritance (estate) Land value Luxury On childlessness Payroll Pigouvian Property Resource rent Single Stealth Surtax Turnover Use User charge/fee Congestion Fuel Road/GNSS Toll Vehicle miles traveled Corporate profit Excess profits Windfall Negative (income) Wealth
International Financial transaction tax ATTAC Currency transaction tax European Union Common Consolidated Corporate Tax Base (CCCTB) Global minimum corporate tax rate Robin Hood tax Tobin tax Spahn tax Tax equalization Tax treaty Exchange of Information Permanent establishment Transfer pricing European Union FTT Foreign revenue rule
Trade Custom Duty Tariff Import Export Tariff war Free trade Free-trade zone Trade agreement ATA Carnet
Research Academic Mihir A. Desai Dhammika Dharmapala James R. Hines Jr. Ronen Palan Joel Slemrod Gabriel Zucman Advocacy groups Institute on Taxation and Economic Policy (ITEP) Oxfam (UK) Tax Foundation (US) Tax Justice Network (TJN) Tax Policy Center (US)
Religious Church tax Eight per thousand Teind Tithe Fiscus Judaicus Leibzoll Temple tax Tolerance tax Jizya Kharaj Khums Nisab Zakat
By country All Countries List of countries by tax rates Tax revenue to GDP ratio Tax rates in Europe Individual Countries Albania Algeria Argentina Armenia Australia Azerbaijan Bangladesh Bhutan Brazil Bulgaria BVI Canada China Colombia Croatia Denmark Finland France Germany Greece Hong Kong Iceland India Indonesia Iran Ireland Israel Italy Japan Kazakhstan Lithuania Malta Morocco Namibia Netherlands New Zealand Norway Pakistan Palestine Peru Philippines Poland Portugal Russia South Africa Sri Lanka Sweden Switzerland Taiwan Tanzania United Arab Emirates United Kingdom United States Uruguay
Business portal Money portal
v t e

Severance taxes are taxes imposed on the removal ofnatural resources within a taxing jurisdiction. Severance taxes are most commonly imposed in oil producing states within theUnited States. Resources that typically incur severance taxes when extracted includeoil,natural gas,coal,uranium, andtimber. Some jurisdictions use other terms likegross production tax.

Note that severance taxes are used in jurisdictions where most resource extraction occurs on privately owned land and/or where sub-surface minerals are privately owned (for example, the United States).^[1][2] Where the resources are publicly owned to begin with (for example, in mostCommonwealth andEuropean Union countries), it is not a tax but rather aresource royalty that is paid. In the case of the forestry industry, this royalty is called "stumpage".

Severance taxes are set and collected at the state level.^[3] States usually calculate the tax based on the value and/or volume produced; sometimes the method differs for oil, natural gas, and condensates.^[4][5] Production from certain wells may be exempt from severance tax based on the amount of production (i.e. "stripper" wells) or the type of well (i.e. horizontal, tertiary, deep, etc).^[5] As of 2021, 34 states collect a severance tax on oil and gas extraction.^[6]

As of September 2022, the Colorado severance tax was 1% of the gross income from oil and gas owed.^[7]

Severance tax incentives may be given in the form of credits or lower tax rates in order to encourage the production and expansion of oil and gas operations.

Several U.S. states, includingNew Mexico,Wyoming,Colorado,Alaska andMontana, have created severance endowments. These range in size from about $800 million in Montana to more than $37 billion in Alaska. In theory, income from these permanent endowments remains available in perpetuity after resources are no longer being extracted, and is generally used to support public education and other public programs.^{[citation needed]}

• Natural resources consumption tax
• Severance tax legislative history in California
• Stumpage

• Vaughan, George (1922). "The Severance Tax and Kindred Exactions".The Southwestern Political Science Quarterly.2 (4): 283–301.

• Texas Severance Tax Incentives: Past and Present (Railroad Commission of Texas)
• Coal and Renewables in Central Appalachia: The Impact of Coal on the West Virginia State Budget (2010)
• Coal and Renewables in Central Appalachia: The Impact of Coal on the Tennessee State Budget (2010)

Thistax-related article is astub. You can help Wikipedia byexpanding it.

• v
• t
• e

• Severance taxes
• Taxes by type
• Resource extraction
• Economics of primary sector industries
• Supply-side economics
• Tax stubs

• Articles lacking in-text citations from March 2013
• All articles lacking in-text citations
• Articles with short description
• Short description is different from Wikidata
• All articles with unsourced statements
• Articles with unsourced statements from September 2014
• All stub articles