MS HB968

Amends the definition of "gas" under Mississippi's gas severance tax law to include carbon dioxide, effective July 1, 2018.

Removes the existing exemption for gas lawfully injected into the earth for cycling, repressuring, lifting, or enhancing oil recovery.

Provides a new exemption from gas severance tax for carbon dioxide sold or used for industrial or commercial purposes in Mississippi, including as raw materials in manufacturing or enhanced oil recovery methods.

Allocates gas severance tax revenue from carbon dioxide production to counties and municipalities for repair, maintenance, and reconstruction of roads, streets, and bridges, distributed semi-annually (January 31 and June 30).

Distributes allocated funds with two-thirds to counties (based on equal shares, rural road miles, and rural population) and one-third to municipalities (based on sales tax revenue distribution proportions).