Taxes on production and imports: State and local government: Severance taxes

S230431A027NBEA • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

23.37

Year-over-Year Change

41.27%

Date Range

1/1/1959 - 1/1/2023

Summary

This economic trend measures state and local government revenue from severance taxes, which are taxes on the extraction or removal of natural resources like oil, gas, and minerals.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

Severance taxes are an important revenue source for state and local governments that have significant natural resource extraction industries within their jurisdictions. Economists and policymakers analyze this data to understand the fiscal impacts of resource extraction on public finances.

Methodology

The data is collected and calculated by the U.S. Bureau of Economic Analysis.

Historical Context

Severance tax revenue trends can provide insights into the health of resource extraction industries and their contribution to state and local budgets.

Key Facts

  • Severance taxes accounted for over $15 billion in state and local government revenue in 2020.
  • Texas, Wyoming, and North Dakota collect the most severance tax revenue in the U.S.
  • Severance tax rates vary widely across states, from under 1% to over 12% of the value of extracted resources.

FAQs

Q: What does this economic trend measure?

A: This trend measures state and local government revenue from severance taxes, which are taxes on the extraction or removal of natural resources like oil, gas, and minerals.

Q: Why is this trend relevant for users or analysts?

A: Severance tax revenue is an important metric for understanding the fiscal impacts of resource extraction industries on state and local government budgets.

Q: How is this data collected or calculated?

A: The data is collected and calculated by the U.S. Bureau of Economic Analysis.

Q: How is this trend used in economic policy?

A: Economists and policymakers analyze severance tax revenue trends to assess the health of resource extraction industries and their contribution to state and local government finances.

Q: Are there update delays or limitations?

A: The severance tax data is published quarterly by the Bureau of Economic Analysis, with some potential delays in availability.

Related Trends

Citation

U.S. Federal Reserve, Taxes on production and imports: State and local government: Severance taxes (S230431A027NBEA), retrieved from FRED.