MS HB1537

Changes severance tax liability for oil and gas from producers to interest owners, requiring interest owners to pay taxes regardless of residency in Mississippi.

Allows surface owners to claim exemption from 10 percent of ad valorem taxes when nonproducing oil, gas, or mineral interests are owned separately, provided they submit attorney title opinions to the tax assessor by April 1 each year.

Requires nonproducing mineral interest owners to pay a prorated portion of 10 percent of ad valorem taxes on the underlying land, with failure to pay resulting in the mineral interest being sold for taxes similar to land sales.

Provides that if a nonproducing mineral interest is offered for sale and receives no bids, the interest reverts to the surface owner, who becomes liable for delinquent taxes and the prorated mineral interest taxes.

Requires tax collectors to submit separate certified lists to chancery court clerks identifying mineral interests sold for nonpayment of taxes and those reverting to surface owners due to lack of bidders at tax sales.