Flag_of_Alabama.svg
An official website of the Alabama State government.

The .gov means it's official

Government websites often end in .gov or .mil. Before sharing sensitive information, make sure you’re on an official government site.

The site is secure

The https:// ensures that you are connecting to the official website and that any information you provide is encrypted and transmitted securely.

  • Homepage
  • >
  • What are the severance tax rates?

What are the severance tax rates?

PRODUCT PRIVILEGE TAX OTHER TAX
Oil and Gas 2% to 8% of value production tax at 1% or 2% of value
Forest Products Various manufacturers tax 50% of privilege tax
Coal $0.335/ton  Additional tax of $0.025 for underground mining or $0.05 for surface mining
Related FAQs in Business and License, Severance Tax

Once the lien has arisen, it will continue until the liability for the amount assessed is satisfied, released or becomes unenforceable by reason of lapse of time (i.e. 10 years from the date the lien is filed) (Code Sections 40-1-2, 40-29-20, and 49-29-21).

No. However, the cigarette tax stamp ordering system is not tied to consignment balances. Therefore, state consignment customers must be aware of their available consignment balance and place orders within their bond limit. Failure to do so will result in the stamp order being modified to accommodate the available balance.

The person or persons authorized by you to access MAT/submit your stamp order will receive a confirmation when they click on the “submit” button that the stamp order has been submitted to the Tobacco Tax Section. Once the order has been fulfilled, the invoice associated with the order will be available in MAT for viewing and payment, if applicable.

No, the system uses the system date that the order was created. Therefore, orders dated for the future are unavailable. If multiple orders are submitted on the same day before the 1 p.m. cut off, they will be processed for shipment that day; the related invoices would all have the same invoice and due dates.

We use FedEx shipping. There is an area on your order form where you can choose whether you want pickup, overnight or 2-day delivery. Please use this feature to let our staff know the preferred shipping method. If the FedEx account number is incorrect please make the necessary changes.

Once a “new line item” – your stamp type and quantity – has been saved to an order it can be edited by entering the correct count. You can also choose a new type from the drop down if you select the incorrect one.