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Regular Session, 2013
SENATE RESOLUTION NO. 189
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 RESOLUTION1
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 nonresident 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 SR NO. 189
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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 Senate of the Legislature of Louisiana4
does hereby establish the Withholding Study Task Force to study the tax collection processes5
in other energy-producing states, including types of taxes levied, the amounts of each6
collected, and the percentage of total collections of each, and make recommendations, if7
needed, regarding procedures relative to a requirement to deduct and withhold oil and gas8
proceeds of out-of-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) One member of the Senate appointed by the president of the Senate.14
(3) The secretary of the Department of Revenue, or his designee.15
(4) The secretary of the Department of Natural Resources, or his designee.16
(5) The chairman of the Louisiana State Mineral and Energy Board, or his designee.17
(6) One member with experience in accounting in the oil and gas field appointed by18
the governor.19
(7) The chairman of the Senate Committee on Transportation, Highways, and Public20
Works, or his designee.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 and Louisiana land owners.24
BE IT FURTHER RESOLVED that the Senate of the Legislature of Louisiana urges25
and requests the Department of Revenue in conjunction with the Louisiana Mineral and26
Energy Board and any other necessary association to compile information on which types27
of taxes are levied, the amounts of collections from each, and the percentage of total28
collections of each in energy-producing states and how taxes are collected in those states29
from out-of-state taxpayers relative to any amount derived from oil and gas production from30 SR NO. 189
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any well located in the state and payable as a mineral lease, royalty interest, oil payment,1
overriding royalty interest, production payment interest, working interest, or any other2
obligation expressed as a right to a specified interest in the cash proceeds received from the3
sale of oil and gas production or in the cash value of that production.4
BE IT FURTHER RESOLVED that the Senate of the Legislature of Louisiana urges5
and requests the Department of Revenue to provide a cost benefit analysis report to the6
Withholding Study Task Force.7
BE IT FURTHER RESOLVED that the Withholding Study Task Force shall hold8
its organizational meeting no later than August 30, 2013, to elect a chairman and vice9
chairman from among its membership.10
BE IT FURTHER RESOLVED that the task force shall meet as necessary during the11
interim, between the 2013 and 2014 Regular Sessions, and shall report its findings to the12
members of the Senate and to the governor no later than 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 McHenry Lee.
DIGEST
Peacock SR No. 189
Creates a task force to study the deduction withholding of certain oil and gas proceeds of
out-of-state individuals and entities.