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Regular Session, 2013 ENROLLED
SENATE RESOLUTION NO. 189
BY SENATOR PEACOCK
A RESOLUTION
To establish a task force to study the tax collection processes in other energy-producing
states and make recommendations regarding procedures relative to the deduction and
withholding of oil and gas proceeds of out-of-state entities and individuals.
WHEREAS, R.S. 47:164 authorizes the secretary of the Department of Revenue to
require all persons making payments of interest, rent, salaries, wages, premiums, annuities,
compensation, remunerations, emoluments, or other fixed or determinable gains, profits, and
income of one thousand dollars or more to another person to report such payment to the
Department of Revenue; and
WHEREAS, current regulations require the filing of an informational return such as
the Federal Form 1099 MISC for any payment of one thousand dollars or more that is made
to a nonresident of Louisiana for rent or royalties from properties located in Louisiana; and
WHEREAS, a number of other energy-producing states provide for withholding of
such income; and
WHEREAS, in Louisiana the income on any amount derived from oil and gas
production from any well located in the state and payable as a mineral lease, royalty interest,
oil payment, overriding royalty interest, production payment interest, working interest, or
any other obligation expressed as a right to a specified interest in the cash proceeds received
from the sale of oil and gas production or in the cash value of that production is taxable to
Louisiana and the tax is required to be paid on this income through the filing of annual
income tax returns.
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby establish the Withholding Study Task Force to study the tax collection processes
in other energy-producing states, including types of taxes levied, the amounts of each
collected, and the percentage of total collections of each, and make recommendations, if SR NO. 189 ENROLLED
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needed, regarding procedures relative to a requirement to deduct and withhold oil and gas
proceeds of out-of-state individuals and entities.
BE IT FURTHER RESOLVED that the Withholding Study 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) One member of the Senate appointed by the president of the Senate.
(3) The secretary of the Department of Revenue, or his designee.
(4) The secretary of the Department of Natural Resources, or his designee.
(5) The chairman of the Louisiana State Mineral and Energy Board, or his designee.
(6) One member with experience in accounting in the oil and gas field appointed by
the governor.
(7) The chairman of the Senate Committee on Transportation, Highways, and Public
Works, or his designee.
BE IT FURTHER RESOLVED that the Withholding Study Task Force requests
participation in the meetings and the discussions from other representatives of the oil and
gas industry and Louisiana land owners.
BE IT FURTHER RESOLVED that the Senate of the Legislature of Louisiana urges
and requests the Department of Revenue in conjunction with the Louisiana Mineral and
Energy Board and any other necessary association to compile information on which types
of taxes are levied, the amounts of collections from each, and the percentage of total
collections of each in energy-producing states and how taxes are collected in those states
from out-of-state taxpayers relative to any amount derived from oil and gas production from
any well located in the state and payable as a mineral lease, royalty interest, oil payment,
overriding royalty interest, production payment interest, working interest, or any other
obligation expressed as a right to a specified interest in the cash proceeds received from the
sale of oil and gas production or in the cash value of that production.
BE IT FURTHER RESOLVED that the Senate of the Legislature of Louisiana urges
and requests the Department of Revenue to provide a cost benefit analysis report to the
Withholding Study Task Force. SR NO. 189 ENROLLED
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BE IT FURTHER RESOLVED that the Withholding Study Task Force shall hold
its organizational meeting no later than August 30, 2013, to elect a chairman and vice
chairman from among its membership.
BE IT FURTHER RESOLVED that the task force shall meet as necessary during the
interim, between the 2013 and 2014 Regular Sessions, and shall report its findings to the
members of the Senate and to the governor no later than January 15, 2014.
BE IT FURTHER RESOLVED that 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 and to insure the state receives its fair
share of revenues from taxable properties located in the state.
BE IT FURTHER RESOLVED that a copy of this Resolution 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 all members of the
Withholding Study Task Force.
PRESIDENT OF THE SENATE