severance tax

American  

noun

1. a tax levied by a state on the extraction and use of a natural product, as coal, that is sold outside the state or during a certain period.

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Etymology

Origin of severance tax

First recorded in 1925–30

Example Sentences

An oil embargo by Arab countries triggered a boom in the coal industry, and Carroll’s administration was awash in money from the coal severance tax.

From Washington Times

The arrangement would harness the state’s bonding authority and financial reserves held in its multibillion-dollar Severance Tax Permanent Fund.

From Seattle Times

In another report, Carbon Tracker recommended a severance tax on remaining oil output to prop up an insurance program to plug wells.

From Salon

Legislation adopted this year will divert excess income from petroleum to the state’s severance tax permanent fund, to generate investment income and underwrite construction projects.

From Seattle Times

“I was the sponsor of the coal severance tax in West Virginia. Millions and millions of dollars have been paid on that tax, and I’m sure the coal industry has never forgotten.”

From Seattle Times