Oil and Gas Severance
General Information
- A severance tax is imposed on all oil and natural gas severed from the soil or water within the state
- A return must be filed on or before the 25th of the month following the month of production.
- A return must be completed and filed on all producing wells, even if no taxes are due.
- If the taxes are paid by other parties, a completed return must be filed identifying the parties paying the taxes. An amount of zero (0) would be entered in the "tax due" column of each form.
- Oil volume is measured by the barrel which is 42 U.S. gallons, at 231 cubic inches per gallon, computed at 60 degrees Fahrenheit
- Gas volume is measured in cubic feet, at a pressure of 15.025 p.s.i.a. at 60 degrees Fahrenheit
Notices
Gas Severance Value
Notice to all Oil and Natural Gas Producers
Exemptions
- Enhanced Oil Recovery wells completed after April 1, 1994, that use an approved method, receive a three percent (3%) reduced rate.
- To receive exempt status, a written request must be submitted to the Mississippi State Oil and Gas Board. The mailing address for the State Oil and Gas Board is: State Oil and Gas Board, 500 Greymont Avenue, Suite E, Jackson, MS 39202, (601)354-7142.
Forms
- 91-100-09 — Oil Operators-Producers Report
- 91-101-09— Oil Purchasers Report
- 92-100-09 — Gas Operators-Producers Report
- 92-101-09 — Gas Purchasers Report
Laws and Regulations
Laws administered by the Department of Revenue may be found at Mississippi Code at Lexis Publishing
- Oil Severance Tax Laws, Title 27, Chapter 25, Article 5, Mississippi Code Annotated (27-25-501)
- Gas Severance Tax Laws, Title 27, Chapter 25, Article 7, Mississippi Code Annotated (27-25-701)
Gas Severance Regulation, Title 35, Part VIII, Mississippi Administrative Code
