The Fiber System makes the complex task of tracking of Severance Taxes a simple task. The system requires that a severance tax table be created for every state in which you have tracts and destinations. For example, if you have a tract located in the state Alabama, you must have an Alabama severance tax table. In addition, if you deliver wood to a destination in Mississippi, you must have a Mississippi tax table.
When applicable, during the generate settlements process, the system will calculate severance taxes using the severance tax tables. In addition, whether or not you withhold severance tax on your producers, or owners the system will track the state and county in which the wood was harvested for reporting purposes.
Each file and field associated with severance taxes within the system is described below:
Tract - Subject to Severance Taxes
If this field is left unchecked, the system will not calculate or report any severance taxes for the tract regardless of any other settings defined within the system. If this field is checked, severance tax calculations will be based on other settings defined within the system.
Destination – Calculate Severance Taxes - Producer
This field should be checked if you want to calculate severance taxes on the producer for deliveries to this destination. This field should be left unchecked, if you do not want to calculate severance taxes on the producer for deliveries to this destination. If this field is checked and the field “Subject to Severance Taxes” in the tract file is checked, and the producer has a severance tax deduction, the deduction will be made. If this field is left unchecked and the field “Subject to Severance Taxes” in the tract is checked, and the producer has a severance tax deduction, severance taxes will not be calculated and no severance tax deduction will be made for deliveries to this destination.
Destination – Calculate Severance Taxes - Owner
This field should be checked if you want to calculate severance taxes on the Owner for deliveries to this destination. This field should be left unchecked, if you do not want to calculate severance taxes on the Owner for deliveries to this destination. If this field is checked and the field “Subject to Severance Taxes” in the tract file is checked, and the Owner has a severance tax deduction, the deduction will be made. If this field is left unchecked and the field “Subject to Severance Taxes” in the tract is checked, and the Owner has a severance tax deduction, severance taxes will not be calculated and no severance tax deduction will be made for deliveries to this destination.
Destination – Calculate Severance Taxes - Destination
This field should be checked if you want to calculate severance taxes on deliveries to this destination. This field should be left unchecked, if you do not want to calculate severance taxes on deliveries to this destination. If this field is checked and the field “Subject to Severance Taxes” in the tract is checked, severance taxes will be calculated for the destination. When severance tax calculations are made for a destination, the accounts receivable amount is reduced by the severance tax amount and the general ledger file is updated with the appropriate entries. If this field is left unchecked and the field “Subject to Severance Taxes” in the tract is checked, severance taxes will not be calculated for the destination.
Producer Deductions – Severance Taxes
If the severance tax deduction is active for the producer, and the field “Subject to Severance Taxes” in the tract file is checked, and the field “Calculate Severance Taxes - Producer” in the destination file is checked and the producer has a severance tax deduction, the deduction will be made. If the severance tax deduction is inactive, the deduction will not be made regardless of other settings defined within the system.
Owner Deductions – Severance Taxes
If the severance tax deduction is active for the Owner, and the field “Subject to Severance Taxes” in the tract file is checked, and the field “Calculate Severance Taxes - Owner” in the destination file is checked and the Owner has a severance tax deduction, the deduction will be made. If the severance tax deduction is inactive, the deduction will not be made regardless of other settings defined within the system.
To access the Severance Tax Table List window, select the menu option entitled Severance Tax Tables on the Fiber Procurement Control Files Menu.
The Severance Tax Table List window, will be displayed as follows:
The system defaults to displaying only the active Severance Tax Tables. To display the inactive, or both the active and inactive Severance Tax Tables, click on the drop-down box arrow located at the upper right corner of the window.
Cycle Box
To remain in the add mode without returning to the Severance Tax Tables list window each time you add a new table, check the cycle box. To enter a check in the box, click on the Cycle box, press “Alt Y”, or press the Space Bar when the selection box is positioned over the “cycle” field. You would normally check the cycle box if you are entering more than one Severance Tax Tables during the current session.
To access online help, click on the Help button, press “Alt H”, or F1.
To exit the Severance Tax Tables list browse window, click on Close button, press “Alt O”, or press the Esc key.
Severance Tax State Maintenance
To add a new Severance Tax State, click on the Add button, press “Alt A”, or press the Insert key.
To edit an existing Severance Tax State, highlight the desired category and click on the Edit button, press “Alt E”, or press Enter.
When you add a new Severance Tax State, the system will display the Severance Tax Tables window as follows:
Enter or edit the information on the Severance State window according to the following specifications:
State Code
An entry in this field is required. To display a selection list of the valid States defined within the system, press Enter, or click on the Lookup button.
Require Specie “Types”
Status
Select the active box if the Severance State is active, or select the inactive box if the Severance State is inactive. The system defaults to displaying only the active Severance States on the selection list.
To save and exit the Severance Tax State window, press Page Down, click on the OK button, or press “Alt O”. To exit without saving the Severance Tax State window, click on the Cancel button, press “Alt C”, press Esc, or click on the “X” in the upper right corner of the screen. You must save this window before attempting to define the codes for the category. If so, click on the “Tax Table” button to enter/edit the tax rates information.
To access online help, click on the Help button, press “Alt H”, or F1.
To enter or edit the Severance Tax Table Rates information, click the Tax Table button, or press “Alt X”.
The system will display the Severance Tax Rates List window as follows:
Cycle Box
To remain in the add mode without returning to the Severance Tax Rates list window each time you add a new Rate, check the cycle box. To enter a check in the box, click on the Cycle box, press “Alt Y”, or press the Space Bar when the selection box is positioned over the “cycle” field. You would normally check the cycle box if you are entering more than one Severance Tax Rate during the current session.
To access online help, click on the Help button, press “Alt H”, or F1.
To exit the Severance Tax Rates list window, click on Close button, press “Alt O”, or press the Esc key.
Severance Tax Rates Maintenance
To add a new Severance Tax Rate, click on the Add button, press “Alt A”, or press the Insert key.
To edit an existing rate, highlight the desired table and click on the Edit button, press “Alt E”, or press Enter.
When you add a new Severance Tax Table, the system will display the following window:
Enter or edit the information on the Severance Tax Table window according to the following specifications:
Specie
An entry in this field is required. To display a selection list of the valid Species defined within the system, press Enter, or click on the Lookup button. The system defaults to displaying only the active species on the selection list.
Type
If you have defined any types within the system, an entry in this field is required. To display a selection list of the valid types, press Enter, or click on the Lookup button. The system defaults to displaying only the active types on the selection list.
Unit
Enter the unit of measure. To display a selection list of the valid Units of Measure defined within the system, press Enter, or click on the Lookup button. The system defaults to displaying only the active Units of Measure on the selection list.
Tax Rate
Enter the severance tax rate. The field provides for seven digits with four decimal positions.
Status
Select the active box if the Severance Tax Tables Code is active, or select the inactive box if the Severance Tax Tables Code is not active. The system defaults to displaying only the active Severance Tax Tables Codes on the selection list.
To save and exit the Severance Tax Rate window, press Page Down, click on the OK button, or press “Alt O”. To exit without saving the Severance Tax Rate window, click on the Cancel button, press “Alt C”, press Esc, or click on the “X” in the upper right corner of the screen.
To access online help, click on the Help button, press “Alt H”, or F1.
Return to Top Destination Group Codes
System Controls User-Defined Categories/Codes Menu
Units of Measure Producer Expiration Types
Product Menu Stick Scale Tables
Producer Deductions Tract Types