Severance Taxes

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Gas

Who must file

A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.

Rate of tax

The tax rate for natural gas and equivalent gas volumes of natural gasoline, casinghead gasoline, and other natural gas liquids per 1,000 cubic feet at a base pressure of 15.025 pounds per square inch absolute and at 60 degrees Fahrenheit is adjusted annually on July 1 and may never be less than 7 cents.

Type Rate
a. Full Rate - 7/1/14 to 6/30/15 [R.S. 47:633(9)(d)(i)] $.163 per MCF
b. Incapable oil-well gas [R.S. 47:633(9)] $.03 per MCF
c. Incapable gas-well gas [R.S. 47:633(9)] $.013 per MCF
d. Produced water-full rate 7/1/14 to 6/30/15 {R.S. 47:633.5(C)(2)] $.13 per MCF
e. Produced water-incapable oil-well gas [R.S. 47:633.5(C)(2)] $.024 per MCF
f. Produced water-incapable gas-well gas [R.S. 47:633.5(C)(2)] $.0104 per MCF

Date Tax Due

Tax returns must be filed on or before the twenty-fifth day of the second month following the month to which the tax is applicable.

Report

The severer must report the kind and quantity of natural resources severed, the names of the owners, the portion owned by each, the location of each natural resource, and the places where severed.

The purchaser must report the names and addresses of all sellers and the quantity and gross price paid for each natural resource.

These reports are due monthly on the same date as the tax.

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Oil

Who must file

A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.

Rate of tax

Oil/Condensate/Similar Natural Resources Per barrel of 42 gallons
Full rate oil/condensate 12.5% of value
Incapable oil rate [R.S. 47:633(7)(b)] 6.25% of value
Stripper oil rate* [R.S. 47:633(7)(c)] 3.125% of value
Reclaimed oil [R.S. 47:648.21] 3.125% of value
Produced water-full rate [R.S. 47:633.5(C)(1)] 10.0% of value
Produced water-incapable oil rate [R.S. 47:633.5(C)(1)] 5.0% of value
Produced water-stripper oil rate [R.S. 47:633.5(C)(1)] 2.5% of value

* Stripper oil is exempt as long as the average posted price for a 30-day period is less than $20 per barrel.

Date Tax Due

Tax returns must be filed on or before the twenty-fifth day of the second month following the month to which the tax is applicable.

Report

The severer must report the kind and quantity of natural resources severed, the names of the owners, the portion owned by each, the location of each natural resource, and the places where severed.

The purchaser must report the names and addresses of all sellers and the quantity and gross price paid for each natural resource.

These reports are due monthly on the same date as the tax.

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Timber

Who must file

A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.

Rate of tax

  1. Trees and timber - 2.25 percent of current stumpage value as determined by the Louisiana Forestry Commission
  2. Pulpwood - 5 percent of current stumpage value as determined by the Louisiana Forestry Commission

Date Tax Due

Tax returns must be filed by the last day of the month following the taxable month.

Report

The severer must report the kind and quantity of natural resources severed, the names of the owners, the portion owned by each, the location of each natural resource, and the places where severed.

The purchaser must report the names and addresses of all sellers and the quantity and gross price paid for each natural resource.

These reports are due monthly on the same date as the tax.

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Minerals

Who must file

A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.

Rate of tax

  1. Sulphur - $1.03 per long ton of 2,240 pounds
  2. Salt - $.06 per ton of 2,000 pounds
  3. Marble - $.20 per ton
  4. Stone - $.03 per ton
  5. Sand - $.06 per ton
  6. Shells - $.06 per ton
  7. Salt content in brine, when used in the manufacture of other products and not marketed as salt - $.005 per ton
  8. Lignite - $.12 per ton

Date Tax Due

Tax returns must be filed by the last day of the month following the taxable month.

Report

The severer must report the kind and quantity of natural resources severed, the names of the owners, the portion owned by each, the location of each natural resource, and the places where severed.

The purchaser must report the names and addresses of all sellers and the quantity and gross price paid for each natural resource.

These reports are due monthly on the same date as the tax.

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Natural Gas Franchise

Who must file

Every corporation, domestic or foreign, engaged in the business of transporting natural gas by pipeline in Louisiana must file a return.

Rate of tax

One percent of the gross receipts from the operation of its franchise or charters in this state.

Date Tax Due

Returns and payments are due quarterly on the last day of the month following the quarterly period, and become delinquent after this date.

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