severance tax

noun

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 In turn, that allowed Hegar to project nearly $5.9 billion of transfers of severance tax receipts next cycle to the highway fund and the rainy day fund, up by $1.1 billion from his January estimate. Robert T. Garrett, Dallas News, "Texas economy has ‘accelerated,’ prompting Comptroller Glenn Hegar to sweeten his revenue outlook," 3 May 2021 Proponents of the severance tax told lawmakers that the industry’s strong position means there’s no better time to restore the tax. oregonlive, "Oregon’s logging industry says it can’t afford new taxes. But prices have never been higher and profits are soaring," 2 Mar. 2021 Governor Tom Wolf’s new budget continues the push for a state severance tax on natural gas extraction, something that has been called for and rejected almost perennially since Ed Rendell (D) was governor. Patrick Gleason, Forbes, "Three Rust Belt Governors Seek More Taxes, Less School Choice," 1 Mar. 2021 Senators also approved House Bill 29 by Rep. Phillip DeVillier, which would provide a severance tax exemption for companies that rework abandoned wells for 24 months or until the cost of investment is paid off, whichever comes first. David Jacobs, Washington Examiner, "Louisiana lawmakers advance oil tax break and protection from new business taxes for unemployment benefits," 21 Oct. 2020 Barring state intervention, the authors added, the tribes would be able to enact a severance tax on any natural resources removed from the reservation. Nick Martin, The New Republic, "How the EPA Is Screwing Oklahoma’s Tribes," 6 Oct. 2020 Holvey also previously attempted to introduce a new severance tax that would fund the state’s wildfire response. oregonlive, "Oregon Gov. Kate Brown calls for audit after our reporting on a state institute that lobbied for the timber industry," 2 Sep. 2020 Holvey also previously attempted to introduce a new severance tax that would fund the state’s wildfire response. The Cutting, ProPublica, "Oregon Gov. Kate Brown Calls for Audit After Our Reporting on a State Institute That Lobbied for the Timber Industry," 2 Sep. 2020 Golden also expects lawmakers will more seriously debate reintroducing the state’s severance tax for timber companies. oregonlive, "Oregon Gov. Kate Brown calls for audit after our reporting on a state institute that lobbied for the timber industry," 2 Sep. 2020

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

6 May 2021

Cite this Entry

“Severance tax.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/severance%20tax. Accessed 14 May. 2021.

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