Louisiana Severance Compensation Program
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FAQ
Severance tax is a state tax imposed on the extraction of non-renewable natural resources that are intended for consumption in other states. These natural resources include such as crude oil, condensate and natural gas, coalbed methane, timber, uranium, and carbon dioxide.
The Severance Tax Relief Program (STRP) allows the suspension or reduction of severance taxes due on production from a qualifying well for a variable time period depending on the category. To review the origin and history of the STRP, please follow this link to our Archives page.
Severance tax is levied on production of natural resources taken from land or water bottoms within the territorial boundaries of the state. The state collects no severance from production in federal waters in the Gulf which start three miles from the Louisiana coast line.
