Every producer of oil in Florida must file a monthly tax return.
Producer means any person who:
- Owns, controls, manages, or leases oil property
- Owns, controls, manages, or leases oil wells
- Produces any taxable oil products
-
Owns any royalty or other interest in any taxable product
(consistent with oil production) or its value, whether the taxable
product is produced by or on behalf of someone under a lease
contract or otherwise
The tax is based on the value of the oil produced and saved or sold
during a month. Oil is taxed at the following rates:
- Escaped oil: 12.5% of gross value
- Ordinary oil production: 8% of gross value
- Small well oil: 5% of gross value
-
Tertiary oil: excise tax rate based on
tiered formula
Reference: Chapter 211, Part I, Florida Statutes
File and Pay Tax
Oil production excise tax is filed monthly using the
Oil Production Monthly Tax Return
(Form DR-145
), which includes instructions.
Returns and payments are due on or before the 25th day of the month
following the month production occurred. If the 25th falls on a
Saturday, Sunday, or state or federal holiday, returns are timely if
filed electronically, postmarked or hand-delivered on the first
business day following the 25th. For example, if the transaction took
place during January, your tax return is due on or before February 25.
A return must be filed for each month, even if no tax is due.
Taxpayers who paid $5,000 or more in severance taxes during the most
recent state fiscal year (July 1 - June 30) are required to pay
electronically during the next calendar year.
When you electronically pay, you must initiate your electronic payment
and receive a confirmation number no later than 5:00 p.m., ET, on the
business day prior to the 25th to avoid penalty and interest. For a
list of the electronic payment deadlines, visit the Department's Forms
and Publications webpage and select the current year
Florida eServices Calendar of Electronic Payment Deadlines
(Form DR-659) under the
eServices
section.
If you file your return or pay tax late, a late penalty of 10% of any
tax due will be added for each month, or portion of a month, the
return is late. The maximum late penalty cannot exceed 50% of the tax
due. A minimum penalty of $50 per month, or portion of a month,
applies even if no tax is due. The penalty cannot exceed $300. A
floating rate of interest applies to underpayments and late payments
of tax. Interest rates can be found on the Department's
Tax and Interest Rates
webpage.
Gas Production - Every producer who severs gas in Florida for
sale, transport, profit, or commercial use must pay an excise tax.
The tax is based on the volume in "mcf" of gas produced and sold or
used by a producer during the month. "Mcf" means 1,000 cubic feet and
is the unit of measurement in the production of gas. The volume is
measured at the point where the kind and quality of gas is
identifiable and it is able to be transported for further use or
processing.
Sulfur Production - Every producer who severs sulfur in Florida
for sale, transport, storage, profit, or commercial use must pay an
excise tax.
The tax is based on the long tons of sulfur produced or recovered by a
producer from the hydrogen sulfide gas contained in oil or gas
production from a well, measured at the point where the sulfur is in
its molten, elemental state, and is capable of being sold, delivered,
transported, or stored.
Every producer of gas and sulfur in Florida must file a quarterly tax
return. Producer means any person who:
- Owns, controls, manages, or leases oil or gas property.
- Owns, controls, manages, or leases oil or gas wells.
- Produces any taxable gas or sulfur products.
-
Owns any royalty or other interest in any taxable product
(consistent with gas and sulfur production) or its value, whether
the taxable product is produced by or on behalf of someone under a
lease contract or otherwise.
The
gas and sulfur excise tax rates
are updated yearly.
Reference: Chapter 211, Part I, Florida Statutes
File and Pay Tax
Gas and sulfur production excise tax is filed quarterly using the
Gas and Sulfur Production Quarterly Tax Return
(Form DR-144
), which includes instructions.
A declaration of estimated tax must be paid in monthly installments
using the
Declaration of Estimated Gas and Sulfur Production Tax
(Form DR-144ES), which is included with Form DR-144. You must pay any
balance due on your quarterly return on or before the due date on the
return.
The return and any remaining balance are due on or before the 25th day
of the second month following the end of each calendar quarter. If the
25th falls on a Saturday, Sunday, or state or federal holiday, returns
are timely if postmarked on the first business day following the 25th.
For example, the return for the first quarter, ending March 31, would
be due on or before May 25.
A return must be filed for each quarter, even if no tax is due.
Taxpayers who paid $5,000 or more in severance taxes during the most
recent state fiscal year (July 1 - June 30) are required to pay
electronically during the next calendar year.
When you electronically pay, you must initiate your electronic payment
and receive a confirmation number no later than 5:00 p.m., ET, on the
business day prior to the 25th to avoid penalty and interest. For a
list of the electronic payment deadlines, visit the Department's Forms
and Publications webpage and select the current year
Florida eServices Calendar of Electronic Payment Deadlines
(Form DR-659) under the
eServices
section.
If you file your return or pay tax late, a late penalty of 10% of any
tax due will be added for each month, or portion of a month, the
return is late. The maximum late penalty cannot exceed 50% of the tax
due. A minimum penalty of $50 per month, or portion of a month,
applies even if no tax is due. The penalty cannot exceed $300. A
floating rate of interest applies to underpayments and late payments
of tax. Interest rates can be found on the Department's
Tax and Interest Rates
webpage.
Every producer severing solid minerals from the soil or waters of
Florida must pay an excise tax. Solid mineral means all solid minerals
including, but not limited to, clay, gravel, phosphate rock, lime,
shells (excluding live shellfish), stone, sand, heavy minerals, and
any rare earths that have been discovered or may be discovered in the
future, which are contained in the soils and waters of this state.
The tax levied on solid minerals is calculated on the value at the
point of severance.
The tax levied on phosphate rock and heavy minerals applies to the
total yearly production, based on bone-dry tons produced at the point
of severance.
The
solid mineral tax rates
are updated yearly.
Reference: Chapter 211, Part II, Florida Statutes
File and Pay Tax
Solid mineral severance tax is filed annually using the
Solid Mineral Severance Tax Return
(Form DR-142
), which includes instructions.
A declaration of estimated tax must be paid in installments using the
Declaration/Installment Payment of Estimated Solid Mineral
Severance Tax
(Form DR-142ES), which is included with
Form DR-142
. You must pay any balance due with your annual return on or before
April 1st of the year following the taxable year.
Solid Mineral Severance Tax Installment Payment Due Dates
| Installment |
Payment Due |
| 1 |
May 1st |
| 2 |
July 1st |
| 3 |
October 1st |
| 4 |
January 1st of the following year |
The return and any remaining balance are due on or before April 1st of
the year following the taxable year. If the 1st falls on a Saturday,
Sunday, or state or federal holiday, returns and payments are timely
if postmarked on the first business day following the 1st.
A return must be filed annually, even if no tax is due.
Taxpayers who paid $5,000 or more in severance taxes during the most
recent state fiscal year (July 1 - June 30) are required to pay
electronically during the next calendar year.
When you electronically pay, you must initiate your electronic payment
and receive a confirmation number no later than 5:00 p.m., ET, on the
business day prior to the 20th to avoid penalty and interest. For a
list of the electronic payment deadlines, visit the Department's Forms
and Publications webpage and select the current year
Florida eServices Calendar of Electronic Payment Deadlines
(Form DR-659) under the
eServices
section.
If you file your return or pay tax late, a late penalty of 10% of any
tax due will be added for each month, or portion of a month, the
return is late. The penalty cannot exceed 50% of the total tax due. A
floating rate of interest applies to underpayments and late payments
of tax. Interest rates can be found on the Department's
Tax and Interest Rates
webpage.
The Miami-Dade County Lake Belt mitigation fee is imposed on each ton
of limerock and sand, extracted in raw, processed, or manufactured
form, by any person who engages in the business of extracting limerock
or sand from within the Miami-Dade County Lake Belt Area and Township
sections. See Section 373.4149, Florida Statutes (F.S.), for boundary
description.
Beginning January 1, 2018, the
Miami-Dade County Lake Belt Mitigation Fee Rates
should be used indefinitely until a statutory change is enacted by
law.
Reference: Section 373.41492, F.S.
File and Pay Fee
Miami-Dade County Lake Belt mitigation fee is filed monthly using the
Miami-Dade County Lake Belt Mitigation Fees Return
(Form DR-146
), which includes instructions.
Returns and payments are due on the 1st and late after the 20th day of
the month following each collection period. If the 20th falls on a
Saturday, Sunday, or state or federal holiday, returns and payments
are timely if postmarked or hand-delivered on the first business day
following the 20th.
A return must be filed for each collection period, even if no tax
is due.
Taxpayers who paid $5,000 or more in severance taxes during the most
recent state fiscal year (July 1 - June 30) are required to pay
electronically during the next calendar year.
When you electronically pay, you must initiate your electronic payment
and receive a confirmation number no later than 5:00 p.m., ET, on the
business day prior to the 20th to avoid penalty and interest. For a
list of the electronic payment deadlines, visit the Department's Forms
and Publications webpage and select the current year
Florida eServices Calendar of Electronic Payment Deadlines
(Form DR-659) under the
eServices
section.
Businesses that extract oil, gas, sulfur, solid minerals, phosphate
rock, or heavy minerals from the soils or waters of Florida must
register to report and pay severance taxes and fees. You can register
using the
online registration
system or complete a paper
Florida Business Tax Application
(Form DR-1
).
When to Notify the Department
You must notify the Florida Department of Revenue if you:
- Change your business name;
- Change your mailing address; or
- Close or sell your business.
The quickest way to notify the Department of these changes is to
update your account
online.
When to Submit a New Tax Application
You must submit a new registration using the
online registration
or complete a paper
Florida Business Tax Application
(Form DR-1
) if you:
- Change your legal entity; or
- Change the ownership of your business.
Child Care Tax Credits Program
A credit is available against specific Florida taxes, including the
severance taxes on oil and gas production, for taxpayers that:
- establish an eligible child care facility for employees;
- operate an eligible child care facility for employees; or
-
pay an eligible child care facility in the name and for the benefit
of an employee.
However, the total amount of credit claimed on each return must not
exceed 50% of the tax due. For more information, visit the
Department’s
Child Care Tax Credits Program
webpage.
References: Sections 211.0254 and 402.261, F.S.
Scholarship-Funding Organizations ─ Tax Credits for Contributions
Taxpayers may make private, voluntary contributions to eligible
nonprofit scholarship-funding organizations. One hundred percent of
the contributions may be used as a credit to offset the tax on oil and
gas production. However, the total amount of credit claimed on each
return must not exceed 50% of the tax due. For more information, visit
the Department's
Scholarship-Funding Organizations - Tax Credits for
Contributions
webpage.
References: Sections 211.0251 and 1002.395, F.S.
New Worlds Reading Initiative Tax Credit
Taxpayers may make contributions to an administrator and receive a
dollar-for-dollar credit against specific Florida taxes, including
Florida severance taxes on oil and gas production. However, the total
amount of credit claimed on each return must not exceed 50% of the tax
due. For more information, visit the Department's
New World Reading Initiative – Tax Credit
webpage.
References: Sections 211.0252 and 1003.485, F.S.
Strong Families Tax Credit
Taxpayers may make contributions to eligible charitable organizations
and receive a dollar-for-dollar credit against specific Florida taxes,
including the severance taxes on oil and gas production. However, the
total amount of credit claimed on each return must not exceed 50% of
the tax due. For more information, visit the Department's
Strong Families Tax Credit
webpage.
References: Sections 211.0253 and 402.62, F.S.
