Mississippi and Indiana – Legislative Update

MS HB532 This Bill was introduced January 15, 2019, and is in the beginning stages.  All oil produced or under the ground on producing properties and all producing oil equipment, including wells, connections, pumps, derricks, and other appurtenances actually owned by and belonging to the producer, and all leases in production, including mineral rights in producing properties, are exempt from all ad valorem taxes. The exemption from ad valorem taxes granted in this section does not apply to the percentage of ad valorem taxes that the owner or holder of a nonproducing oil interest in real estate, which is owned or held separately and apart from and independently of the rights owned in the surface of such real estate, must pay on the land under which the oil interest is located.

 

However, when any nonproducing oil, gas or other mineral interest in real estate is owned separately and apart from and independently of the rights owned in the surface of such real estate, or when any person reserves any right or interest or has any leasehold in any of the elements listed in this subparagraph (i), the owner of the surface estate will be exempt from paying 25% of the ad valorem taxes otherwise due on the real estate.

 

If passed it will become effective July 1, 2019.

 

Indiana SB565 This Bill was introduced on January 14, 2019, and is in the beginning stages.  This Bill applies to a partial payment of a taxpayer’s tax liability.  A partial payment will be applied 1)to the tax liability of the taxpayer, 2)to the penalty owed by the taxpayer, and 3)to any interest of the taxpayer.  If passed it will become effective July 1, 2019.