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| TAX OUTLINE |
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| TAX DESCRIPTIONS |
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| OIL AND GAS SEVERANCE |
LEGAL CITATION: |
M.C.L. 205.301 et seq.; 1929 PA 48 |
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| YEAR ADOPTED: |
1929 |
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| BASIS OF TAX: |
Privilege of producing oil and gas. |
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| MEASURE OF TAX (BASE): |
Gross cash market value of oil and gas severed. Exemption for certain hydrocarbon fuels qualifying for federal tax credits and acquired pursuant to royalty interests sold by the state. |
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| RATE: |
Oil -- 6.6%; Gas -- 5%; Stripper wells and marginal properties -- 4%. |
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| ADMINISTRATION: |
Michigan Department of Treasury, Bureau of Revenue.. |
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| REPORT AND PAYMENT: |
Due by 25th of each month. |
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| DISPOSITION: |
General Fund; the greater of 2% or $1 million to Orphan Well Fund if unexpended balance in that fund is less than $3 million. |
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| 2004-05 COLLECTIONS: |
$64,826,000 |
Last Updated January 10, 2007
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