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U.S. Department of Energy
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Severance-tax adjustment under the Windfall Profit Tax

Journal Article · · Oil Gas Tax Q.; (United States)
OSTI ID:6705864

The severance or production taxes imposed by a large number of states qualify for the severance tax adjustment under the Windfall profits Tax (WPT). However, producers question whether the severance taxes imposed by Colorado, New Mexico, and Wyoming qualify for this adjustment. Even in those cases where the particular tax is deemed deductible by the general consensus, there is still disagreement over how the tax should be calculated for the purpose of the WPT withholding. Another area of controversy is whether the conservation fees or charges imposed by the various states constitute a tax. The traditional piecemeal approach to obtaining revenue rulings for each state may be inappropriate since time is of the essence. The Internal Revenue Service should provide guidelines to producers to assure tax uniformity and to minimize withholding errors. 122 references.

Research Organization:
Marathon Oil Co., Findlay, OH
OSTI ID:
6705864
Journal Information:
Oil Gas Tax Q.; (United States), Journal Name: Oil Gas Tax Q.; (United States) Vol. 24:2; ISSN OGTQD
Country of Publication:
United States
Language:
English