SB2990: Taxation of oilfield services; restructure.

Legislative Summary

An Act To Amend Sections 27-65-17 And 27-65-23, Mississippi Code Of 1972, To Provide That Sales Of Equipment And Materials Used In Connection With Geophysical Surveying, Exploring, Developing, Drilling, Redrilling, Completing, Working Over, Producing, Distributing Or Testing Of Oil, Gas And Other Mineral Resources Shall Be Taxed At 4%; To Provide That Operators That Rebill Sales Of Equipment And Materials To Nonoperating Working Interest Owners On Behalf Of The Joint Account Through Joint Interest Billing (jib), Where The Sales Tax Has Been Paid Or Accrued By The Operator, Shall Not Be Charged Sales Tax On The Jib As Services Income; To Eliminate The 7% Tax On The Gross Income Of Businesses Performing Services In Connection With Geophysical Surveying, Exploring, Developing, Drilling, Producing, Distributing, Or Testing Of Oil, Gas And Other Mineral Resources; To Amend Section 27-65-21, Mississippi Code Of 1972, To Eliminate The 3.5% Contractor's Tax On Oil And Gas Well Contracts; To Amend Sections 19-5-9 And 21-19-25, Mississippi Code Of 1972, To Conform To A Change In Subsection Designation; And For Related Purposes.