MS HB383

Extends the repeal date for reduced severance tax rates on oil and natural gas produced from horizontally drilled wells and horizontally drilled recompletion wells from July 1, 2023 to July 1, 2028.

Maintains the 1.3% tax rate on oil produced from qualifying horizontally drilled wells for 30 months from first sale or until well cost payout, whichever occurs first; standard rate of 6% applies thereafter.

Maintains the 1.3% tax rate on natural gas produced from qualifying horizontally drilled wells for 30 months from first sale or until well cost payout, whichever occurs first; standard rate of 6% applies thereafter.

Wells that begin production before July 1, 2028 continue to qualify for the reduced 1.3% rate for their full 30-month period even after the July 1, 2028 repeal date takes effect.

Effective July 1, 2023.