Severance Tax

The Severance Tax Section administers taxes on natural resources such as oil and gas privilege and production; iron ore, 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 327495
Montgomery, AL 36132-7495
Phone: 334-242-9612
Fax: 334-353-1809