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severance tax

   Also found in: Wikipedia 0.02 sec.
severance tax
n.
A tax imposed by a state on the extraction of natural resources, such as oil, coal, or gas, that will be used in other states.


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The Arkansas General Assembly, in a special session in March, enacted the first increase in the severance tax in a half-century.
Elizabeth Hill, the state legislative analyst, points out that the severance tax could see reduced revenues from property taxes, income taxes and gasoline taxes.
A handful of major energy-producing states are reporting a significant rise in 2005 severance tax collections related to the recent up tick in energy prices.
 
 
 
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