Severance Tax

Consulting & Compliance Services

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

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


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The Rewards of Merit
$ millions
Severance tax refund secured for a Colorado E&P company