Oil

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

Type	Rate
Oil Severance Tax
a. Full Rate Oil/Condensate - wells completed after July 1, 2025	6.5% of value
[R.S. 47:633(7)(a) and 47:633(7)(c)(iv)]
b. Full Rate Oil/Condensate - wells completed before July 1, 2025	12.5% of value
[R.S. 47:633(7)(a) and 47:633(7)(c)(iv)]
c. Incapable Oil Rate	6.25% of value
[R.S. 47:633(7)(b)]
d. Stripper Oil Rate	3.125% of value
[R.S. 47:633(7)(c)(i)(aa)]
e. Reclaimed Oil Rate	3.125% of value
[R.S. 47:648.21]
f. Inactive Reduced Oil Rate	3.125% of value
[R.S. 47:633(7)(c)(iv)]
g. Orphan Reduced Oil Rate	1.5625% of value
[R.S. 47:633(7)(c)(iv)]
h. Produced Water – Full Rate - wells completed after July 1, 2025	5.2% of value
[R.S. 47:633.5(C)(1)]
i. Produced Water – Full Rate - wells completed before July 1, 2025	10% of value
[R.S. 47:633.5(C)(1)]
j. Produced Water – Incapable Oil Rate	5% of value
[R.S. 47:633.5(C)(1), R.S. 47:633(7)(b)]
k. Produced Water – Stripper Oil Rate	2.5% of value
[R.S. 47:633.5(C)(1), R.S. 47:633(7)(c)(i)(aa)]
Tertiary wells approved on or after July 1, 2009 that have reached payout
[R.S. 47:633.4(B)(2)]
l. Tertiary – Full Rate - wells completed after July 1, 2025	3.25 % of value
m. Tertiary – Full Rate - wells completed before July 1, 2025	6.25 % of value
n. Tertiary – Incapable Oil Rate	3.125% of value
o. Tertiary – Stripper Oil Rate	1.5625% of value

 

 

Type	Rate
Oil Severance Tax (continued)
Tertiary wells approved before July 1, 2009 that have reached payout
p. Tertiary – Full Rate	12.5 % of value
q. Tertiary – Incapable Oil Rate	6.25% of value
r. Tertiary – Stripper Oil Rate	3.125% of value
Horizontal - 20% of Full Rate
s. Horizontal wells completed after July 1, 2025	1.3% of value
t. Horizontal wells completed before July 1, 2025	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.