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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
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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, including types of taxes levied, the amounts of each collected, and6
the percentage of total collections of each, and make recommendations, if needed, regarding7
procedures relative to a requirement to deduct and withhold oil and gas proceeds of out-of-8
state individuals and entities.9
BE IT FURTHER RESOLVED that the Withholding Study Task Force shall be10
comprised of the following members:11
(1) The chairman of the Senate Committee on Revenue and Fiscal Affairs, or his12
designee.13
(2) The chairman of the House Committee on Ways and Means, or his designee.14
(3) One member of the Senate appointed by the president of the Senate.15
(4) One member of the House appointed by the speaker of the House of16
Representatives.17
(5) The secretary of the Department of Revenue, or his designee.18
(6) The secretary of the Department of Natural Resources, or his designee.19
(7) The chairman of the Louisiana State Mineral and Energy Board, or his designee.20
(8) One member with experience in accounting in the oil and gas field appointed by21
the governor.22
(9) The chairman of the Senate Committee on Transportation, Highways, and Public23
Works, or his designee.24
(10) The chairman of the House Committee on Transportation, Highways, and Public25
Works, or his designee.26
BE IT FURTHER RESOLVED that the Withholding Study Task Force requests27
participation in the meetings and the discussions from other representatives of the oil and28
gas industry and Louisiana land owners.29
BE IT FURTHER RESOLVED that the Legislature of Louisiana urges and requests30 SCR NO. 100
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the Department of Revenue in conjunction with the Louisiana Mineral and Energy Board and1
any other necessary association to compile information on which types of taxes are levied,2
the amounts of collections from each, and the percentage of total collections of each in3
energy-producing states and how taxes are collected in those states from out-of-state4
taxpayers relative to any amount derived from oil and gas production from any well located5
in the state and payable as a mineral lease, royalty interest, oil payment, overriding royalty6
interest, production payment interest, working interest, or any other obligation expressed as7
a right to a specified interest in the cash proceeds received from the sale of oil and gas8
production or in the cash value of that production.9
BE IT FURTHER RESOLVED that the Legislature of Louisiana urges and requests10
the Department of Revenue to provide a cost benefit analysis report to the Withholding11
Study Task Force.12
BE IT FURTHER RESOLVED that the Withholding Study Task Force shall hold13
its organizational meeting no later than August 30, 2013, to elect a chairman and vice14
chairman from among its membership.15
BE IT FURTHER RESOLVED that the task force shall meet as necessary during the16
interim, between the 2013 and 2014 Regular Sessions, and shall report its findings to the17
members of the Senate and the House of Representatives and to the governor no later than18
January 15, 2014.19
BE IT FURTHER RESOLVED that the Withholding Study Task Force report shall20
be direct and concise and shall detail filing and payment requirements and necessary21
recommendations on tax policies to benefit the state and to insure the state receives its fair22
share of revenues from taxable properties located in the state.23
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the24
secretary of the Department of Revenue, the secretary of the Department of Natural25
Resources, the chairman of the State Mineral and Energy Board, and to all members of the26
Withholding Study Task Force.27 SCR NO. 100
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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,
including the types of taxes and the amounts collected, in other energy-producing states and
to 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.
(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.
(9)The chairman of the Senate Committee on Transportation, Highways, and Public
Works, or his designee.
(10)The chairman of the House Committee on Transportation, Highways, and Public
Works, or his designee.
Also requests participation in the meetings and discussions by representatives of the oil and
gas industry and Louisiana land owners.
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. SCR NO. 100
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Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the original bill
1. Adds the chairman of the House Committee on Transportation, Highways,
and Public Works, or his designee, to the task force.
2. Adds the chairman of the Senate Committee on Transportation, Highways,
and Public Works, or his designee, to the task force.
3. Adds the types of taxes and amounts collected of each by other energy-
producing states to the study.