Severance Tax – Alabama Department of Revenue

An official website of the United States government. Here's how you know

The .gov means it's official.
Federal government websites always use a .gov or .mil domain. Before sharing sensitive information online, make sure you’re on a .gov or .mil site by inspecting your browser's address (or "location") bar.

This site is also protected by an SSL (Secure Sockets Layer) certificate that's been signed by the U.S. government. The https:// means all transmitted data is encrypted — in other words, any information or browsing history that you provide is transmitted securely.

The Severance Tax Section administers taxes on natural resources such as oil and gas privilege and production; coal, forest products; and minerals.

Taxes

Resources

View Severance Tax FAQ

Tax Laws

The taxes listed below are administered by the Severance Tax Section of the Business & License Tax Division.
Read the laws at the Code of Alabama website.
See acts passed since the last revision of Code of Alabama 1975.

Oil & Gas Tax

Privilege Tax On Production: Title 40, Chapter 20, Article 1, Sections 1-23
Conservation and Regulation of Production: Title 9, Chapter 17, Article 1, Sections 25-35
County Oil and Gas Severance Tax Trust Funds: Title 40, Chapter 20, Article 3, Section 50

Coal Severance Tax

1971 Coal Severance Tax: Title 40, Chapter 13, Article 1, Sections 1-10
1977 Coal and Lignite Severance Tax: Title 40, Chapter 13, Article 2, Sections 30-36

Other Tax Types

Forest Products Tax: Title 9, Chapter 13, Article 4, Sections 80-108
Uniform Natural Minerals Tax: Title 40, Chapter 13, Article 3, Sections 50-61
Alabama Taxpayer’s Bill of Rights and Uniform Procedures: Title 40, Chapter 2A
Interest on Delinquent Taxes and Overpayments: Title 40, Chapter 1, Section 44

State Administered Local Severance Taxes

Locality	Tax Type	Rate	Authority
Statewide – Uniform (Except: Coosa, Geneva, Lamar, Lee, and Wilcox)	Natural Minerals, Sand, Gravel, Sandstone, Granite, Shale, Clay, Dolomite, Limestone	10¢ per ton	40-13-50, 40-13-61, Code of Alabama, 1975
Coosa County	Sand, Clay, Silt, Loam, Dirt, Gravel, Rock, Sand-gravel, Sand-Clay	25¢ per ton	45-19-244 thru 45-19-244.07, Code of Alabama, 1975
Coosa County	Graphite	$5 per ton	45-19-244 thru 45-19-244.07, Code of Alabama, 1975
Jackson County	Coal	20¢ per ton	79-349,97-220
Marshall County	Coal	20¢ per ton	81-482

Contact Information

Business & License Tax Division
Severance & License Tax Section
P.O. Box 327560
Montgomery, AL 36132-7560
Phone: 334-242-9612
Fax: 334-353-1809