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Severance Taxes

Taxes at a Glance

Coal - There is a severance tax on all coal products severed from the ground in Tennessee. The tax is levied upon the entire production in the state regardless of the place of sale or the fact that delivery may be made outside the state.

Mineral - Any county legislative body, by resolution, is authorized to levy a tax on all sand, gravel, sandstone, chert and limestone severed from the ground within its jurisdiction.

Crude Oil - A tax is imposed on all gas and oil removed from the ground in Tennessee.

Natural Gas - A tax is imposed on all gas and oil removed from the ground in Tennessee.

Due Dates:

Coal - Monthly - 15th of the month
Mineral - Monthly - 15th of the month
Crude Oil - Monthly - 20th of the month
Natural Gas - Monthly - 20th of the second month

Tax Rates:

Coal - $1.00 per ton severed (effective 7/1/13)
Mineral - up to $0.15 per ton, rate set by county legislative body
Crude Oil - 3% of sales price
Natural Gas - 3% of sales price

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