Natural Gas Processor Tax

On what is the tax imposed?

The tax is imposed on the amount of mmBtus of natural gas delivered to the processor at the inlet of the natural gas processing plant after taking specifically authorized mmBtu deductions. The definition of “mmBtu” is one million British thermal units.

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What is the tax rate?

Per statute, the Taxation and Revenue Department (TRD) calculates the rate through a formula each year, and TRD must inform each processor of the rate on or before June 15th of each year.

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Are there any tax credits related to this tax program?

Natural Gas Processor Tax No. Severance Tax - Non Oil & Gas A taxpayer may qualify for a credit against current coal severance taxes if the coal is severed from Indian tribal land or if a tax is imposed on the privilege of severing coal from Indian tribal land. This...

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