Severance tax is a tax imposed for the removal of nonrenewable resources to be used in other states. Some nonrenewable resources that fall under this category are crude oil, natural gas, methane and carbon dioxide. The tax is imposed on businesses who produce, or work, with any of the nonrenewable resources in the states that impose the tax. States that do not impose the severance tax are Connecticut, Delaware, Hawaii, Iowa, Massachusetts, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Vermont and Virginia. The tax is imposed even if the business does not record any net income.

blog comments powered by Disqus