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Severance

Severance

Mineral

Tax Rate

Clay

1 cent per ton

Sandstone

1 cent per ton

Shale

1 cent per ton

Conglomerate

1 cent per ton

Gypsum

1 cent per ton

Quartzite

1 cent per ton

Dolomite

2 cents per ton

Gravel

2 cents per ton

Sand

2 cents per ton

Limestone

2 cents per ton

Natural Gas

2.5 cent per Mcf

Oil

10 cents per barrel

Salt

4 cents per ton

Coal

10 cents per ton

Coal – Surface Mining

1.2 cents per ton

Coal – Reclamation Fund

12 cents per ton for 2014

Natural resource includes all forms of coal, salt, limestone, dolomite, sand, gravel, clay, sandstone, conglomerate, shale, gypsum, quartzite, natural gas and oil.

Electronic registration is available online through the Ohio Business Gateway (“OBG”) at business.ohio.gov. Paper registration forms are available at tax.ohio.gov or can be requested by calling (855) 466-3921, option 5.

A severer is any person who actually removes the natural resources from the soil or water in this state.

Periods

Period Dates

Return and Payment Due Dates

First Quarter

January 1 – March 31

May 15

Second Quarter

April 1 – June 30

August 15

Third Quarter

July 1 – September 30

November 15

Fourth Quarter

October 1 – December 31

February 15

Annual Filers

January 1 – December 31

February 15

All gases that are extracted from each well need to be reported on the Severance Tax Return (SV-3). The production reported on the SV-3 should agree with the amount reported from the meter or run ticket at the well. The severance of natural resources is taxed in the period the natural resources were severed and not the period in which the resources were sold. All gases, wet and dry, need to be reported on the Severance Tax Return.
Anyone who wishes to sever natural resources in Ohio should contact the Ohio Department of Natural Resources for more information on permitting and bonding. For questions pertaining to oil and gas, call (614) 265-6922. For all other minerals, call (614) 265-6633.
R.C. 5749.06(G)(1) and O.A.C. 5703-35-01 require that all severance returns be filed and paid electronically. Returns must be filed via the Ohio Business Gateway at business.ohio.gov. Taxpayers may make electronic payments either through the OBG or with the Treasurer of State’s Office (TOS). The TOS’s website is tos.ohio.gov

A person may apply to be excused from the requirement to file and pay electronically by completing Form SV FBP, Request to File By Paper. Upon receiving the SV FBP, the Excise & Energy Tax Division will determine whether the person has established good cause and will notify the person in writing of the Tax Commissioner’s decision.
The severance tax is paid by a person, as defined in R.C. 5749.01(E), that extracts or severs natural resources from the soil or waters of Ohio. The severance tax is levied upon the extraction of natural resources and not upon the sale of natural resources.
The owner of an oil/gas well is the person who has the right to extract oil or gas from the well. This person is required to hold a permit to drill with the Ohio Department of Natural Resources.
If you are a well owner of a producing well in Ohio, generally identified as such by the Well Status Code (“PR”) as registered with the Ohio Department of Natural Resources (ODNR), then yes, you are required to file the SV 3 – Severance Tax Return. Effective January 1, 2020, the fifteen dollar per well component of the oil and gas cost recovery assessment (“assessment”) calculation has been eliminated. Going forward, the assessment is based solely on production quantities from your producing wells. Well owners of producing are still required to file severance tax returns, even if the well(s) produced no quantities for the reporting period. Please contact ODNR if you do not know the registered status of your well(s).

A person can obtain a user name for OBG at business.ohio.gov. Self-help tutorials for navigating OBG are available here

 

Pursuant to Am. Sub. H. B. 166, natural resources severed from an exempt domestic well are exempt from the severance tax imposed by R.C. 5749.02.  You must be an Exempt Owner or Senate Bill 165 Exempt Owner with the Ohio Department of Natural Resources in order to be eligible for this exemption
Any mineral that is severed from Ohio soil and waters should be included on the Severance Tax Return (SV-3) regardless of how the mineral is used. Any gas that is severed in Ohio should be included on the severance tax return, regardless if used for flaring.

Additional Resources

Additional Resources