Tennessee § 60-1-301 Severance tax levied - Exceptions - Disposition of revenues - Moratorium on taxes

Tennessee Statutes

§ 60-1-301 — Severance tax levied - Exceptions - Disposition of revenues - Moratorium on taxes

Tennessee § 60-1-301

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This text of Tennessee § 60-1-301 (Severance tax levied - Exceptions - Disposition of revenues - Moratorium on taxes) is published on Counsel Stack Legal Research, covering Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Tenn. Code Ann. § 60-1-301 (2026).

Text

(a)There is levied a severance tax on all gas and oil removed from the ground in Tennessee. The measure of the tax for such gas and oil shall be three percent (3%) of the sale price of such gas and oil. Every person actually engaged in severing oil or gas, or actually operating oil or gas property under contracts or agreements requiring direct payments to the owners of any royalty interest, excess royalty or working interest, either in money or otherwise, shall be liable for the tax imposed by this section and shall, prior to making any such payments, withhold from any quantity or amount due the amount of tax due pursuant to this section.

(b)The tax shall be levied for the use and benefit of the state, as well as the county governments and one-third (1/3) of all revenues collected from t

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(a) There is levied a severance tax on all gas and oil removed from the ground in Tennessee. The measure of the tax for such gas and oil shall be three percent (3%) of the sale price of such gas and oil. Every person actually engaged in severing oil or gas, or actually operating oil or gas property under contracts or agreements requiring direct payments to the owners of any royalty interest, excess royalty or working interest, either in money or otherwise, shall be liable for the tax imposed by this section and shall, prior to making any such payments, withhold from any quantity or amount due the amount of tax due pursuant to this section. (b) The tax shall be levied for the use and benefit of the state, as well as the county governments and one-third (1/3) of all revenues collected from the tax shall be allocated to the county which was the site of the wellhead for that gas or oil. The remaining two-thirds (2/3) of such revenues shall be deposited to the credit of the state treasurer as a part of the general funds of the state. (c) No other tax shall be imposed on such gas and oil by the state, counties or any other political subdivision of the state; provided, however, that: (1) Free gas used by the property owner or tenant under the terms of the lease, unless it be in lieu of cash payment; and (2) Gas which has been injected into the ground for underground storage and thereafter withdrawn shall not be subject to this, or any taxation.

Legislative History

Acts 1943, ch. 64, § 13; C. Supp. 1950, § 5240.13; Acts 1963, ch. 106, § 1; 1978, ch. 761, § 115; 1978, ch. 777, § 1; 1979, ch. 153, §1; T.C.A. (orig. ed.), § 60-116; Acts 1981, ch. 155, § 1; 1982, ch. 878, § 1.