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Severance Tax

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



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

Coal Severance Tax

Other Tax Types

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