Section 6-5 - Persons Bearing the Incidence of the Tax (a) Liability for ad valorem (gross products) or severance taxes arises when any mineral is removed, extracted, severed or produced in this State. - (i) The ad valorem (gross products) tax relates to the ownership or interest in the mineral removed, extracted, severed or produced, and the incidence of the tax is on all the interest owners in proportion to their ownership shares unless exempted by law. Ad Valorem taxes are determined from the gross production of minerals for the previous calendar year.
- (ii) The severance tax is an excise tax imposed on the present and continuing privilege of removing, extracting, severing or producing any mineral in this state, and the incidence of the severance tax is upon all interest owners in proportion to their ownership shares, unless otherwise exempt by law. Severance taxes are determined from the gross production in the current calendar year.