Oil
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Updated November 07, 2024
Explore Louisiana's Severance Tax on oil production, covering tax rates, regulations, and filing guidelines. Stay up-to-date on the latest requirements for oil producers in Louisiana.
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Who Must File?
A return must be filed by each severer who withholds tax from royalty payments and each purchaser who withholds tax from any amount due a seller or owner if the tax has not yet been paid.
Rate of Tax
| Oil/Condensate/Similar Natural Resources | Per barrel of 42 gallons |
|---|---|
| a. Full Rate Oil/Condensate [R.S. 47:633(7)(A)] | 12.5% of value |
| b. Incapable Oil Rate [R.S. 47:633(7)(b)] | 6.25% of value |
| c. Stripper Oil Rate ***** [R.S. 47:633(7)(c)(i)(aa)] | 3.125% of value |
| d. Reclaimed Oil [R.S. 47:648.21] | 3.125% of value |
| e. Half Rate - Inactive Oil [R.S. 47:633(7)(c)(iv)] | 6.25% of value |
| f. Quarter Rate - Orphan Oil [R.S. 47:633(7)(c)(iv)] | 3.125% of value |
| g. Produced water - Full Rate [R.S. 47:633.5(C)(1)] | 10.0% of value |
| h. Produced water - Half Rate - Incapable Oil [R.S. 47:633.5(C)(1) and 47:633(7)(b)] | 5.0% of value |
| i. Produced water - Quarter Rate - Stripper Oil [R.S. 47:633.5(C)(1) and 47:633(7)(c)(i)(aa)] | 2.5% of value |
| j. Tertiary - Full Rate [R.S. 47:633.4(B)(2)] | 6.25% of value |
| k. Tertiary - Incapable Oil Rate [R.S. 47:633.4(B)(2) and 47:633(7)(b)] | 3.125% of value |
| l. Tertiary - Stripper Oil Rate [R.S. 47:633.4(B)(2) and 47:633(7)(c)(i)(aa)] | 1.5625% of value |
| m. Horizontal Rate - 7/1/23 to 6/30/24 [R.S. 47:633(7)(d)(i)] | 5.0% of value |
| n. Horizontal Rate - 7/1/24 to 6/30/25 [R.S. 47:633(7)(d)(i)] | 2.5% of value |
Stripper oil is exempt as long as the average posted price for a 30-day period is less than $20 per barrel per Louisiana Revised Statute 47:633(7)(c)(i)(bb).
Date Tax Due
Tax returns must be filed on or before the twenty-fifth day of the second month following the month to which the tax is applicable.
Reporting
The severer must report the kind and quantity of natural resources severed, the names of the owners, the portion owned by each, the location of each natural resource, and the places where severed.
The purchaser must report the names and addresses of all sellers and the quantity and gross price paid for each natural resource.
Tax returns must be filed on or before the twenty-fifth day of the second month following the month to which the tax is applicable.