Fillable Form 381 - Oil Severance Tax Return (Page 3 of 4) in pdf

381, Page 3

Instructions for Completing Form 381, Oil Severance Tax Return

WHO MUST FILE

This report must be filed by all common purchasers or producers of oil and gas severed in Michigan. The completed return, together

with payment of the tax due, must be filed with the Michigan Department of Treasury on or before the 25th day of each month, covering

purchases or production for the preceding month.

This form must appear as the first sheet of every return. A completed Form 383, Production Report must be included with each return.

Form 384, Exempt Production and Value Report, must be completed if you are requesting an exemption for the interest share of

federal, state and other government entities.

The Michigan Department of Treasury may need more information, and must have access to all books and records relating to

purchases or production, unit price and severance tax. All leases on which reports of purchases or production typically are made must

be included in the monthly report during the life of the lease, even if no production or purchases occurred in the month being reported.

Leases on which the last producing well is plugged or abandoned must be reported for the month the last activity occurs. The lease

then may be omitted from future reports.

PART 1

Box A.) Enter the legal individual filer or business name.

Box B.) Enter the nine digit Tax Identification Number. This is the Federal Employer Identification Number, ME number, or TR number

assigned to the legal business entity. This field is required.

Box C.) Check only one box for return type. See definitions below.

ESTIMATED - A return which includes an estimated payment.

ACTUAL - A return that reports actual production figures for the filing period.

ADJUSTED RETURN - A return that reports figures not included on the ACTUAL return. You may NOT file an ADJUSTED return unless

you have filed an ACTUAL return for the same filing period. The ADJUSTED return should only report the net change to the ACTUAL

return.

Box D.) Enter the filing period reported on this return in MM-YYYY format.

Box E.) Enter the street address, city, state and zip code.

PART 2 (Enter all negative values in brackets)

REGULAR PRODUCER WELLS - OIL

Line 1- Enter on Line 1, Column 1, the grand total of barrels of OIL from column 6 of Form 383.

Enter on Line 1, Column 2, the grand total of value of OIL from Column 8 of Form 383.

Line 2- Enter on Line 2, Column 1, the grand total of barrels of OIL from column 7 of Form 384.

Enter on Line 2, Column 2, the grand total of value of OIL from Column 9 of Form 384.

Line 3- Subtract Line 2 from Line 1. Enter the total taxable barrels of OIL on Line 3, Column 1.

Enter the total taxable value of oil on Line 3, Column 2.

Line 4- Multiply the figure on Line 3, Column 2 by 6.6% (.066)

Enter the total Severance tax due for OIL on Line 4, Column 3.

REGULAR PRODUCER WELLS – CONDENSATE

* Report CONDENSATE in Barrels.

Lines 5-8: For the reporting of CONDENSATE from regular producing oil wells, complete the designated lines, referring to the directions

above for lines 1-4.

Form 381 - Oil Severance Tax Return Page 3