SLS 13RS-1684 ORIGINAL
Page 1 of 4
Regular Session, 2013
SENATE CONCURRENT RESOLUTI ON NO. 100
BY SENATOR PEACOCK
COMMITTEE STUDIES. Creates a task force to study the deduction and withholding of
certain oil and gas proceeds of out-of-state individuals and entities.
A CONCURRENT RESOLUTI ON1
To establish a task force to study the tax collection processes in other energy producing2
states and make recommendations regarding procedures relative to the deduction and3
withholding of oil and gas proceeds of out-of-state entities and individuals.4
WHEREAS, R.S. 47:164 authorizes the secretary of the Department of Revenue to5
require all persons making payments of interest, rent, salaries, wages, premiums, annuities,6
compensation, remunerations, emoluments, or other fixed or determinable gains, profits, and7
income of one thousand dollars or more to another person to report such payment to the8
Department of Revenue; and9
WHEREAS, current regulations require the filing of an informational return such as10
the Federal Form 1099 MISC for any payment of one thousand dollars or more that is made11
to a non-resident of Louisiana for rent or royalties from properties located in Louisiana; and12
WHEREAS, a number of other energy- producing states provide for withholding of13
such income; and14
WHEREAS, in Louisiana the income on any amount derived from oil and gas15
production from any well located in the state and payable as a mineral lease, royalty interest,16
oil payment, overriding royalty interest, production payment interest, working interest, or17
any other obligation expressed as a right to a specified interest in the cash proceeds received18 SCR NO. 100
SLS 13RS-1684 ORIGINAL
Page 2 of 4
from the sale of oil and gas production or in the cash value of that production is taxable to1
Louisiana and the tax is required to be paid on this income through the filing of annual2
income tax returns. 3
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby4
establish the Withholding Study Task Force to study the tax collection processes in other5
energy- producing states and make recommendations, if needed, regarding procedures6
relative to a requirement to deduct and withhold oil and gas proceeds of out-of-state7
individuals and entities.8
BE IT FURTHER RESOLVED that the Withholding Study Task Force shall be9
comprised of the following members:10
(1) The chairman of the Senate Committee on Revenue and Fiscal Affairs, or his11
designee.12
(2) The chairman of the House Committee on Ways and Means, or his designee.13
(3) One member of the Senate appointed by the president of the Senate.14
(4) One member of the House appointed by the speaker of the House of15
Representatives.16
(5) The secretary of the Department of Revenue, or his designee.17
(6) The secretary of the Department of Natural Resources, or his designee.18
(7) The chairman of the Louisiana State Mineral and Energy Board, or his designee.19
(8) One member with experience in accounting in the oil and gas field appointed by20
the governor.21
BE IT FURTHER RESOLVED that the Withholding Study Task Force requests22
participation in the meetings and the discussions from other representatives of the oil and23
gas industry.24
BE IT FURTHER RESOLVED that the Legislature of Louisiana urges and requests25
the Department of Revenue in conjunction with the Louisiana Mineral and Energy Board and26
any other necessary association to compile information on energy-producing states and how27
taxes are collected in those states from out-of -state taxpayers relative to any amount derived28
from oil and gas production from any well located in the state and payable as a mineral lease,29
royalty interest, oil payment, overriding royalty interest, production payment interest,30 SCR NO. 100
SLS 13RS-1684 ORIGINAL
Page 3 of 4
working interest, or any other obligation expressed as a right to a specified interest in the1
cash proceeds received from the sale of oil and gas production or in the cash value of that2
production.3
BE IT FURTHER RESOLVED that the Legislature of Louisiana urges and requests4
the Department of Revenue to provide a cost benefit analysis report to the Withholding5
Study Task Force.6
BE IT FURTHER RESOLVED that the Withholding Study Task Force shall hold7
its organizational meeting no later than August 30, 2013, to elect a chairman and vice8
chairman from among its membership.9
BE IT FURTHER RESOLVED that the task force shall meet as necessary during the10
interim, between the 2013 and 2014 Regular Sessions, and shall report its findings to the11
members of the Senate and the House of Representatives and to the governor no later than12
January 15, 2014.13
BE IT FURTHER RESOLVED that the Withholding Study Task Force report shall14
be direct and concise and shall detail filing and payment requirements and necessary15
recommendations on tax policies to benefit the state and to insure the state receives its fair16
share of revenues from taxable properties located in the state.17
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the18
secretary of the Department of Revenue, the secretary of the Department of Natural19
Resources, the chairman of the State Mineral and Energy Board, and to all members of the20
Withholding Study Task Force.21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle Doiron.
DIGEST
Peacock SCR No. 100
Establishes the Withholding Study Task Force to study the tax collection processes in other
energy producing states and make recommendations, if needed, regarding procedures
relative to dedication and withholding of oil and gas proceeds of out-of-state individuals and
entities.
Requests that the task force shall be comprised of the following members:
(1)The chairman of the Senate Committee on Revenue and Fiscal Affairs, or his
designee. SCR NO. 100
SLS 13RS-1684 ORIGINAL
Page 4 of 4
(2)The chairman of the House Committee on Ways and Means, or his designee.
(3)One member of the Senate appointed by the president of the Senate.
(4)One member of the House appointed by the speaker of the House of Representatives.
(5)The secretary of the Department of Revenue, or his designee.
(6)The secretary of the Department of Natural Resources, or his designee.
(7)The chairman of the Louisiana State Mineral and Energy Board, or his designee.
(8)One member with experience in accounting in the oil and gas field appointed by the
governor.
Also requests participation in the meetings and discussions by representatives of the oil and
gas industry.
Requests that its organizational meeting be no later than August 30, 2013, to elect a
chairman and vice chairman from among its membership. Further requests the Withholding
Study Task Force shall meet as necessary over the interim and shall report its findings to the
members of the Senate and the House of Representatives and to the governor no later than
January 15, 2014.
Requests the Withholding Study Task Force report shall be direct and concise and shall
detail filing and payment requirements and necessary recommendations on tax policies to
benefit the state from taxable properties located in the state.
A copy of this Resolution shall be transmitted to the secretary of the Department of Revenue,
the secretary of the Department of Natural Resources, the chairman of the State Mineral and
Energy Board, and to the members of the Withholding Study Task Force.