2006 Regular Session
To: Oil, Gas and Other Minerals; Ways and Means
By: Representative Gibbs, Eaton, Buck, Dickson, Ellis, Fleming, Harrison, Holloway, Huddleston, Markham, Thomas
AN ACT TO REQUIRE OWNERS OF ALL NONPRODUCING MINERAL ESTATES AND LEASEHOLD INTERESTS IN MINERALS OWNED SEPARATELY AND APART FROM THE SURFACE ESTATE TO PAY A CERTAIN PORTION OF PROPERTY TAXES; TO PROVIDE THAT WHERE THE TAX BECOMES DELINQUENT THE MINERAL ESTATE OR LEASEHOLD INTEREST SHALL REVERT TO THE SURFACE OWNER; TO AMEND SECTION 27-31-85, MISSISSIPPI CODE OF 1972, IN CONFORMITY TO THE PROVISIONS OF THIS ACT; TO REPEAL SECTIONS 27-31-73 AND 27-31-75, MISSISSIPPI CODE OF 1972, WHICH RELATE TO THE EXEMPTION OF NONPRODUCING MINERAL AND LEASEHOLD INTERESTS FROM AD VALOREM TAXES; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. (1) From and after January 1, 2007, all owners of nonproducing mineral estates and all leasehold interests in minerals which are owned separately and apart from the surface estate shall pay twenty-five percent (25%) of the property taxes. Such tax shall become due and be payable in the same manner as taxes on the surface estate.
(2) If the taxes provided for in subsection (1) of this section are not paid when they become due, such mineral estate or leasehold interest shall revert to the surface owner.
SECTION 2. Section 27-31-85, Mississippi Code of 1972, is amended as follows:
27-31-85. From the taxes levied and collected under and by virtue of Sections 27-31-77 through 27-31-83 inclusive, and Section 1 of this act, the chancery clerk shall retain ten percent (10%) as a fee for the collection thereof, and shall pay the remainder thereof into the proper depository to the credit of the county, one-half (1/2) to the common county fund and one-half (1/2) to the county school fund. Such deposit shall be made on or before the fifteenth day of the month next succeeding that in which such collection may be made. * * *
SECTION 3. Sections 27-31-73 and 27-31-75, Mississippi Code of 1972, which relate to the exemption of nonproducing mineral and leasehold interests, are repealed.
SECTION 4. This act shall take effect and be in force retroactively from and after January 1, 2006.