Florida imposes severance taxes or fees on oil and gas production, phosphate, heavy minerals, and other solid minerals; and limerock or sand extracted within the Miami-Dade County Lake Belt Area.
Every oil producer who severs oil in Florida for sale, transport, storage, profit, or commercial use must pay an excise tax.
Read more about oil production tax
“Producer” means “any person who owns, controls, manages, or leases oil or gas property, or oil or gas wells; or any person who produces in any manner any taxable oil products” or “any person owning any royalty or other interest in any taxable product (consistent with oil production) or its value, whether the taxable product is produced by, or on behalf of, such person under a lease contract or otherwise.”
The tax is based on the value of the oil produced and saved or sold during a month. Oil is taxed at the following rates:
Taxpayers must complete an Oil Production Monthly Tax Return (DR-145) and pay fees on or before the 25th of the month following the month when production occurred. Taxpayers file a paper DR-145 tax return; however, you may pay fees electronically.
Gas Production – Every producer who severs gas in Florida for sale, transport, profit, or commercial use must pay an excise tax.
The tax is based on the volume in "mcf" of gas produced and sold or used by a producer during the month. The volume is measured at the point where the kind and quality of gas is identifiable and it is able to be transported for further use or processing.
Sulfur Production – Every producer who severs sulfur in Florida for sale, transport, storage, profit, or commercial use must pay an excise tax.
Read more about gas and sulfur production tax
“Producer” means “any person who owns, controls, manages, or leases oil or gas property, or oil or gas wells; or any person who produces in any manner any taxable product” or “any person owning any royalty or other interest in any taxable product (consistent with gas and sulfur production) or its value, whether the taxable product is produced by, or on behalf of, such person under a lease contract or otherwise.”
The tax is based on the long tons of sulfur produced or recovered by a producer from the hydrogen sulfide gas contained in oil or gas production from a well, measured at the point where the sulfur is in its molten, elemental state, and is capable of being sold, delivered, transported, or stored.
Taxpayers must file a quarterly return and pay estimated tax in monthly installments. Pay estimated tax on Form DR-144ES (Declaration of Estimated Gas and Sulfur Production Tax); it is due on the 25th day of the month after each month when production occurred. Pay any balance due using the Gas and Sulfur Production Quarterly Tax Return (DR-144) by the 25th of the second month following the end of each calendar quarter. Taxpayers file paper tax returns; however, you may pay fees electronically.
The excise tax rates on gas and sulfur are updated yearly.
Every person engaging in the business of severing solid minerals, phosphate rock, and heavy minerals from the soils and waters of Florida for commercial use must pay an excise tax. The tax rate is 8 percent of the value at the point of severance.
Read more about solid mineral severance tax
The tax levied on phosphate rock and heavy minerals applies to the total yearly production, based on bone-dry tons produced at the point of severance.
Taxpayers must file an annual declaration of estimated tax, pay estimated tax in quarterly installments, and file an annual tax return. The Declaration of Estimated Tax and the first installment payment (Form DR-142ES) are due by May 1. The remaining installments are due as follows:
The Solid Minerals Severance tax rates are updated yearly.
The Lake Belt Mitigation Fee and the Water Treatment Plant Upgrade Fee are imposed on each ton of limerock and sand, extracted in raw, processed, or manufactured form, by any person who engages in the business of extracting limerock or sand from within the Miami-Dade County Lake Belt Area and Township sections (see s. 373.4149, F. S., for boundary description).
Read more about Miami-Dade County Lake Belt Mitigation and Water Treatment Upgrade Fees
Taxpayers must complete a Miami-Dade County Lake Belt Mitigation and Water Treatment Plant Upgrade Fees Tax Return (DR-146) and pay fees by the 20th day of the month following the collection period. Taxpayers file a paper DR-146 tax return; however, you may pay fees electronically.
Beginning with calendar year 2015, these fee rates should be used indefinitely until a statutory change is enacted by law.
Businesses that extract or sever oil and gas, solid minerals, or limerock and sand, and are not currently paying and reporting severance tax, should call 800-352-3671 or e-mail email@example.com. We will set up your account and send information and returns to you.
If you paid $20,000 or more in severance taxes or fees during the most recent state fiscal year, you must pay taxes or fees electronically during the next calendar year. Find out how to enroll to pay tax electronically and download a due date calendar (Form DR-659).