severance tax

noun

: a tax levied by a state on the extractor of oil, gas, or minerals intended for consumption in other states compare royalty sense 5a

Examples of severance tax in a Sentence

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Legislation adopted this year will divert excess income from petroleum to the state’s severance tax permanent fund, to generate investment income and underwrite construction projects. —

Morgan Lee, Fortune, 24 Aug. 2023 Pennsylvania notably does not have a severance tax [severance tax: a state tax imposed on the extraction of non-renewable natural resources that are intended for consumption in other states—Ed.]. —

IEEE Spectrum, 12 May 2021 Over the past decade, the coal severance tax revenue collected by Martin County based on how much coal is pulled out of the ground has fallen more than 90 percent to $80,000 in the last fiscal year, according to Colby Kirk, the county’s deputy executive judge. —

New York Times, 2 Jan. 2022 Why doesn’t California levy a severance tax? —

Los Angeles Times, 7 Oct. 2021 See all Example Sentences for severance tax