ELI5: Explain Like I'm 5

Severance tax

A severance tax is a special type of tax that governments collect from companies that take natural resources from the ground. For example, when a company drills for oil, or mines for minerals or coal, it needs to pay a special tax to the government, which is called a severance tax. This tax is meant to help governments get some of the money that companies make from taking these resources out of the ground.