Revenue Administrative Bulletin 1989-17
Approved: April 4, 1989
SEVERANCE TAX -
LIABILITY - AUDIT DEFICIENCIES
RAB-89-17. The Michigan Severance Tax Act, MCL 205.303,
places the severance tax responsibility on the producer of
Michigan oil and gas. The Act also requires the common purchaser
to deduct (withhold) the tax from payments paid to the producer
and remit same to the Department. (See MCL 205.303(l).)
Generally, any Michigan Department of Treasury audit
deficiency will be charged against the producer. However, if the
deficiency is due to failure by the common purchaser to withhold
the tax or to remit the tax withheld, the Department will charge
the deficiency against the common purchaser.
