Fillable Form Sv 3 - Ohio Severance Tax Return (Page 2 of 2) in pdf

SV 3

Rev. 9/10

Instructions for Completing Return

Page 2

1. Enter on the proper line(s) in column 2 the total amount

3. Add the tax due amounts entered in Column 4 and enter

of each natural resource removed from the soil or water

the sum in the box provided as “Total tax due.”

in Ohio during the period covered by the return. The

4. Add amounts in the Total tax due, Interest due and Regula-

quantity extracted should be reported in tons for coal,

tory cost recovery payment due boxes. Enter the sum in the

salt, limestone, dolomite, sand, gravel, clay, sandstone,

Total amount remitted box. Make remittance in this amount

conglomerate, shale, gypsum and quartzite. Oil should be

payable to the Ohio Treasurer of State and mail the return,

reported in barrels and natural gas should be reported in

the schedule (if applicable) and payment to Ohio Depart-

thousand cubic feet (MCF).

ment of Taxation, Excise and Energy Tax Division, P.O. Box

2. Multiply the amount entered on each line in column 2 by

530, Columbus, OH 43216-0530.

the tax rate shown on the same line in column 3 and enter

If you have any questions, please call the Excise Tax Section

the result in column 4.

at (855) 466-3921.

Deﬁ nitions in the Severance Tax Law

“Natural Resource” means all forms of coal, salt, limestone,

Home Use Exemption:

dolomite, sand, gravel, clay, sandstone, conglomerate, shale,

Ohio Revised Code Section 5749.03 provides that natural

gypsum, quartzite, natural gas and oil.

resources used on the land from which removed by the se-

verer as a part of the improvement or for use in his homestead

“Severance” means the extraction or other removal of a

are exempt from the severance tax and the cost recovery fee

natural resource from the soil or water of this state.

up to yearly cumulative market value of $1,000. If you are

claiming this exemption, check the box provided on the front

“Severed” means the point at which the natural resource has

side of the return and enter the market value of the natural

been separated from the soil or water in this state.

resources so used during the calendar year to date.

“Severer” means any person who actually removes the

Interest:

natural resources from the soil or water in this state.

If the tax was not paid on the due date, interest applies from

“Ton” means two-thousand (2,000) pounds as measured

when the tax was due until paid. Multiply the interest rate

at the point and time of severance, after the removal of any

times the number of days late divided by 365 times tax due.

impurities.

The interest rate is determined on a calendar year basis and

can change from year to year. Please refer to our Web site

Responsibility for Payment of the Severance Tax:

at tax.ohio.gov for the current interest rate.

The person who actually removes the natural resource from

the soil or water in this state is responsible for payment of

Tax due:

$5,000

the severance tax. A working interest operator who severs

Report due:

2/15/10

the natural resource within Ohio would be required to report

Report ﬁ led:

4/6/10

and pay the severance tax computed upon the entire quantity

Days late:

severed.

Interest rate:

4% (rate for year 2010)

50 days

When to File Severance Tax Return:

X 4% X $5,000 = $27.40 interest

The severer shall ﬁ le a return within forty-ﬁ ve (45) days

365 days

after the end of each reporting period covering the natural

Oil and Natural Gas Regulatory Cost Recovery:

resources severed during such period and include remittance

Only owners/severers of oil and natural gas wells have to

of the tax due thereon made payable to the Ohio Treasurer

complete the schedule. No other minerals are subject to the

of State.

oil and natural gas regulatory cost recovery fee.

Records Required:

Penalty Provisions:

The severer shall maintain complete and accurate records

Any person who fails to ﬁ le a return and/or a cost recovery

of the quantity of natural resources severed in Ohio. Such

schedule or pay the tax and/or cost recovery fee as required

records and other documents shall be open during business

may be subject to an assessment that includes a penalty of

hours to the inspection of the commissioner, and shall be

ﬁ ve (5) percent per month of the amount of the unpaid taxes

preserved for a period of three (3) years, unless the com-

due, to a maximum penalty of twenty-ﬁ ve (25) percent.

missioner, in writing, consents to their destruction within that

period, or by order requires that they be kept longer.

Form Sv 3 - Ohio Severance Tax Return Page 2

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