Severance Tax

States can calculate severance taxes based on either the value or volume of your production—or both. The nuances can quickly become overwhelming for E&Ps operating in multiple jurisdictions. At Merit Advisors, we help you navigate the complexities to ensure the most tax-efficient oil and gas production.

Areas of expertise include:

Compliance – Ensuring the compliance function follows industry best practices, data is being gathered appropriately and all documentation complies with state requirements—providing a strong fundamental basis for assessments and limits future audits and unexpected back assessments

Exemptions – Conducting regular reviews to ensure you’re taking advantage of all available exemptions—incentives that taxing jurisdictions may offer to expedite the development of energy assets

Tax Rate – Routinely reviewing your data to ensure the proper tax rate is applied to all production