What are Production Taxes &/or Deductions?

What are Production Taxes &/or Deductions?

Certain costs associated with the sale of hydrocarbons are shared by all owners, including royalty owners.   Each deduction is itemized on your revenue statements.
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Production taxes are a state tax (but not income tax) that we are required to withhold for any product that is produced from the ground.

Deductions include your share of expenses incurred to make the products marketable, cost to transport to market, and your share of the state severance taxes assessed on production.

Urban is not able to provide any tax advice and encourages all owners to seek proper tax assistance in preparing their tax returns.


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