Severance taxes are collected on _____.

Question

Quizplus · Accepted Answer

Severance taxes are collected on the extraction of natural resources such as coal, oil, gas, and minerals. This tax is typically paid by the company or entity that owns or controls the natural resource, and the rate of the tax may vary based on the quantity and value of the resource extracted. Severance taxes are a common source of revenue for state governments in the United States, particularly those with significant natural resource extraction industries. Estates, unemployment insurance, and employee bonuses are not subject to severance taxes.

Severance Taxes Are Collected on _____