severance tax


Definition of severance tax

: a tax levied by a state on the extractor of oil, gas, or minerals intended for consumption in other states — compare royalty sense 5a

Examples of severance tax in a Sentence

Recent Examples on the Web John Aguilar and Judith Kohler take a look at how other states have used their severance taxes to create trust funds that today have billions of dollars in them, and why Colorado hasn’t done the same. The Denver Post, "Post Premium: Our best stories for the week of Aug. 12-18," 18 Aug. 2019 Wolf is still calling for a severance tax on natural gas. John Baer,, "Welcome to Pennsylvania's budget season: A show void of value | John Baer," 3 June 2018 Coal severance taxes, one source of revenue, fell by more than 25% over the past decade to $194 million last year, according to the state Department of Revenue. ... Kris Maher, WSJ, "Wyoming Makes a Case for Coal," 15 Feb. 2020 The state funnels some of the severance tax revenue to communities to address the impacts of oil and gas development. Judith Kohler, The Denver Post, "The small Colorado town of Walden, in oil and gas country, has a new solar array. And it floats.," 1 Sep. 2019 But Ohio’s Reclamation Forfeiture Fund, funded through a severance tax on coal, only has about $22 million in it – meaning the remaining money would have to come from the state’s general revenue fund. Jeremy Pelzer, cleveland, "Murray Energy bankruptcy filing stokes fears about Ohio’s coal mine cleanup fund," 4 Nov. 2019 Trebek also touched on the death penalty, imposing a severance tax on natural gas drilling and gerrymandering congressional districts, while the men jousted over who can better deal with the state’s huge pension debt. Marc Levy, The Seattle Times, "Governor, GOP challenger face off at Trebek-hosted forum," 1 Oct. 2018 Oil-producing states, which rely on severance taxes, were hurt by the sharp fall in oil prices in 2015 and 2016. David Harrison, WSJ, "Many States Are Likely Unprepared for Next Downturn," 8 July 2018 The Pennsylvania legislature created the fee as an alternative to a severance tax assessed on production volume, which is commonly used in other oil and gas producing states. Andrew Maykuth,, "Pa. discloses how it will divvy up $210M in shale gas fees," 21 June 2018

These example sentences are selected automatically from various online news sources to reflect current usage of the word 'severance tax.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.

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First Known Use of severance tax

1928, in the meaning defined above

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Time Traveler for severance tax

Time Traveler

The first known use of severance tax was in 1928

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Statistics for severance tax

Last Updated

31 May 2020

Cite this Entry

“Severance tax.” Dictionary, Merriam-Webster, Accessed 1 Jun. 2020.

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