SENATE BILL No. 417

 

 

April 29, 2003, Introduced by Senator EMERSON and referred to the Committee on Finance.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 A bill to amend 1929 PA 48, entitled                                              

                                                                                

    "An act levying a specific tax to be known as the severance tax             

    upon all producers engaged in the business of severing oil and              

    gas from the soil; prescribing the method of collecting the tax;            

    requiring all producers of such products or purchasers thereof to           

    make reports; to provide penalties; to provide exemptions and               

    refunds; to prescribe the disposition of the funds so collected;            

    and to exempt those paying such specific tax from certain other             

    taxes,"                                                                     

                                                                                

    by amending section 15 (MCL 205.315).                                       

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 15.  (1)  The  Except as otherwise provided in this                    

                                                                                

2   section, the severance tax  herein  provided for  shall be  in              

                                                                                

3   this act is in lieu of  all other taxes, state or local,  ad                

                                                                                

4   valorem property taxes or specific taxes levied in lieu of ad               

                                                                                

5   valorem property taxes levied upon the oil or gas, the property             

                                                                                

6   rights attached  thereto  or inherent  therein  in the oil or               

                                                                                

7   gas, or the values created  thereby  by the oil or gas; upon all            

                                                                                

8   leases or the rights to develop and operate any lands of this               


                                                                                

1   state for oil or gas  ,  and the values created  thereby  by                

                                                                                

2   those leases or rights; and upon the property rights attached to            

                                                                                

3   or inherent  therein:  Provided, however, Nothing herein                    

                                                                                

4   contained shall in anywise:  in the oil or gas.                             

                                                                                

5       (2) This section does not exempt the machinery, appliances,                 

                                                                                

6   pipe lines, tanks, and other equipment used in the development or           

                                                                                

7   operation of  said  oil or gas leases  ,  or used to transmit or            

                                                                                

8   transport the  said  oil or gas  :  And provided further, That              

                                                                                

9   nothing herein contained shall in anywise  or relieve any                   

                                                                                

10  corporation or association  person from the payment of any                 

                                                                                

11  franchise or privilege taxes required by  the provisions of the             

                                                                                

12  this state.  corporation laws.                                              

                                                                                

13      Enacting section 1.  This amendatory act takes effect for                   

                                                                                

14  tax years beginning on or after January 1, 2004.