Information on 2015 Tax on Severance of Energy Minerals - Effective July 1, 2015

Introduction

This notice includes law changes enacted in Session Law 2014-4 by the 2013-2014 of the General Assembly on the severance of energy minerals as it relates to its taxation administered 
by the Excise Tax Division.

An excise tax is levied on the privilege of engaging in the severance of energy minerals from the soil or water of this state. The purpose of the tax is to provide revenue to administer and enforce the provisions of Chapter 105, Article 5I of the North Carolina General Statutes, to administer the state's natural gas and oil reclamation regulatory program, to meet the environmental and resource management needs of this state, and to reclaim land affected by exploration for, drilling for, and production of natural gas and oil. The severance tax is imposed upon all energy minerals severed when sold.

Part I reflects information regarding the Taxation and On-Site Use Exemption. Part II includes information for Return Requirements, as well as those for a Bond or Irrevocable Letter of Credit.