MS HB255

Extends the repeal date of reduced severance tax rates for oil and natural gas produced from horizontally drilled wells from July 1, 2023 to July 1, 2026.

Maintains the 1.3% tax rate (instead of standard 6%) on oil and gas from horizontally drilled wells for 30 months from first sale or until well payout, whichever occurs first.

Allows wells that begin production before July 1, 2026 to continue receiving the reduced 1.3% rate for the full 30-month period even after the repeal date takes effect.

Requires operators to apply to the State Oil and Gas Board for the reduced rate and submit semiannual payout status affidavits.

Takes effect July 1, 2023.