MS SB2858

Extends the repeal date of the reduced severance tax on oil and natural gas from horizontally drilled wells from July 1, 2018, to July 1, 2023.

Maintains the 1.3% reduced tax rate for oil and gas produced from horizontally drilled wells or horizontally drilled recompletion wells for 30 months from first sale or until well cost payout, whichever occurs first.

Wells that commence production before July 1, 2023, remain eligible for the reduced tax rate for the full 30-month period or until payout, even after the July 1, 2023, repeal date.

Operators must apply to the State Oil and Gas Board for the reduced rate and provide semiannual payout status reports by signed affidavit.

Effective July 1, 2018.