Oil & Gas Severance Tax | Withholding Information
Withholding Due Dates
Withholding Statements (DR 0021W)
- Gross disbursements made to the interest owner.
- Total amount of severance tax withheld from the gross income payments disbursed to the interest owner.
- Total amount of the interest owner's share of any ad valorem taxes.
They will send you an Oil and Gas Withholding Statement (DR 0021W) by March 1 of each year. This form lists your gross income which you must use to calculate your severance tax and the amount the producer has withheld and paid to the state from your royalty or production payments. If you own interest in more than one well or field, you should receive a separate withholding statement from each producer. A copy of each withholding statement must be attached to your severance tax return. The producer or first purchaser also will list your share of "ad valorem" taxes on the withholding statement. Ad valorem taxes are paid by the producer to local governments. You are allowed to deduct a percentage of your share of ad valorem taxes paid on actual oil or gas production.
Withholding Account Requirements