MISSISSIPPI LEGISLATURE
2013 Regular Session
To: Ways and Means
By: Representatives Lane, Eaton, Brown (20th), Calhoun, Clarke, DeBar, Evans (91st), Horan, Huddleston (30th), Miles, Moak, Pigott, Rushing, Shows, Staples, Stringer, Sullivan, Warren, Watson, Whittington, Wooten
AN ACT TO AMEND SECTION 27-25-505, MISSISSIPPI CODE OF 1972, TO REVISE THE MANNER IN WHICH OIL SEVERANCE TAXES ARE DISTRIBUTED TO THE STATE AND THE COUNTY IN WHICH THE OIL WAS PRODUCED; AND FOR RELATED PURPOSES.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:
SECTION 1. Section 27-25-505, Mississippi Code of 1972, is amended as follows:
[With regard to any county which is exempt from the provisions of Section 19-2-3, this section shall read as follows:]
27-25-505. All taxes herein
levied and collected by the * * * Department of Revenue
shall be paid into the State Treasury on the same day collected. The
commissioner shall apportion all such tax collections to the state and to the
county in which the oil was produced, in accordance with the following schedule
and so certify such apportionment to the State Treasurer at the end of each
month:
On the first Six Hundred Thousand Dollars ($600,000.00) or any part thereof, sixty-six and two-thirds percent (66-2/3%) to the state and thirty-three and one-third percent (33-1/3%) to the county.
* * * Above and exceeding Six
Hundred Thousand Dollars ($600,000.00), or any part thereof, ninety
percent (90%) to the state and ten percent (10%) to the county through June 30,
1989; eighty-five percent (85%) to the state and fifteen percent (15%) to the
county from July 1, 1989, through June 30, 1990; and eighty percent (80%) to
the state and twenty percent (20%) to the county from July 1, 1990, through
June 30, 2014; seventy-seven percent (77%) to the state and twenty-three
percent (23%) to the county from July 1, 2014, through June 30, 2015; seventy-four
percent (74%) to the state and twenty-six (26%) to the county from July 1,
2015, through June 30, 2016; seventy-one percent (71%) to the state and
twenty-nine percent (29%) to the county from July 1, 2016, through June 30,
2017; sixty-eight percent (68%) to the state and thirty-two percent (32%) to
the county from July 1, 2017, through June 30, 2018; and sixty-six and two-thirds
percent (66-2/3%) to the state and thirty-three and one-third percent (33-1/3%)
to the county for each fiscal year thereafter.
* * *
The state's share of all oil severance taxes collected pursuant to this section shall be deposited as provided for in Section 27-25-506.
The State Treasurer shall
remit the county's share of * * * the funds on or before the twentieth
day of the month next succeeding the month in which such collections were made,
for division among the municipalities and taxing districts of the county. He
shall accompany his remittance with a report to the county receiving such funds
prepared by the commissioner showing from whom * * * the tax was collected. Upon receipt
of * * * the
funds, the board of supervisors of * * * the county shall allocate the same
to the municipalities and to the various maintenance and bond and interest
funds of the county, school districts, supervisors districts and road
districts, as hereinafter provided.
When there shall be any oil producing properties within the corporate limits of any municipality, then such municipality shall participate in the division of the tax returned to the county in which the municipality is located, in the proportion which the tax on production of oil from any properties located within the municipal corporate limits bears to the tax on the total production of oil in the county. In no event, however, shall the amount allocated to municipalities exceed one-third (1/3) of the tax produced in the municipality and returned to the county. Any amount received by any municipality as a result of the allocation herein provided shall be used only for such purposes as are authorized by law.
The balance remaining of any amount of tax returned to the county after the allocation to municipalities shall be divided among the various maintenance and bond interest funds of the county, school districts, supervisors districts and road districts, in the discretion of the board of supervisors, and such board shall make the division in consideration of the needs of the various taxing districts. The funds so allocated shall be used only for purposes as are authorized by law.
[With regard to any county which is required to operate on a countywide system of road administration as described in Section 19-2-3, this section shall read as follows:]
27-25-505. All taxes herein
levied and collected by the * * * Department of Revenue
shall be paid into the State Treasury on the same day collected. The
commissioner shall apportion all such tax collections to the state and to the
county in which the oil was produced, in accordance with the following schedule
and so certify such apportionment to the State Treasurer at the end of each
month:
On the first Six Hundred Thousand Dollars ($600,000.00) or any part thereof, sixty-six and two-thirds percent (66-2/3%) to the state and thirty-three and one-third percent (33-1/3%) to the county.
* * * Above and exceeding Six
Hundred Thousand Dollars ($600,000.00) or any part thereof, ninety percent
(90%) to the state and ten percent (10%) to the county through June 30, 1989;
eighty-five percent (85%) to the state and fifteen percent (15%) to the county
from July 1, 1989, through June 30, 1990; and eighty percent (80%) to the state
and twenty percent (20%) to the county from July 1, 1990, through June 30,
2014; seventy-seven percent (77%) to the state and twenty-three percent (23%)
to the county from July 1, 2014, through June 30, 2015; seventy-four percent
(74%) to the state and twenty-six (26%) to the county from July 1, 2015,
through June 30, 2016; seventy-one percent (71%) to the state and twenty-nine
(29%) to the county from July 1, 2016, through June 30, 2017; sixty-eight
percent (68%) to the county from July 1, 2017, through June 30, 2018; and sixty-six
and two-thirds percent (66-2/3%) to the state and thirty-three and one-third
percent (33-1/3%) to the county for each fiscal year thereafter.
* * *
The state's share of all oil severance taxes collected pursuant to this section shall be deposited as provided for in Section 27-25-506.
The State Treasurer shall
remit the county's share of said funds on or before the twentieth day of the
month next succeeding the month in which such collections were made, for
division among the municipalities and taxing districts of the county. He shall
accompany his remittance with a report to the county receiving such funds
prepared by the commissioner showing from whom * * * the tax was collected. Upon receipt
of * * * the
funds, the board of supervisors of * * * the county shall allocate the same
to the municipalities and to the various maintenance and bond and interest
funds of the county and school districts, as hereinafter provided.
When there shall be any oil producing properties within the corporate limits of any municipality, then such municipality shall participate in the division of the tax returned to the county in which the municipality is located, in the proportion which the tax on production of oil from any properties located within the municipal corporate limits bears to the tax on the total production of oil in the county. In no event, however, shall the amount allocated to municipalities exceed one-third (1/3) of the tax produced in the municipality and returned to the county. Any amount received by any municipality as a result of the allocation herein provided shall be used only for such purposes as are authorized by law.
The balance remaining of any amount of tax returned to the county after the allocation to municipalities shall be divided among the various maintenance and bond interest funds of the county and school districts, in the discretion of the board of supervisors, and such board shall make the division in consideration of the needs of the various taxing districts. The funds so allocated shall be used only for purposes as are authorized by law.
SECTION 2. This act shall take effect and be in force from and after July 1, 2013.