MS HB1764

Reduces sales tax rate to 4.5% on equipment and materials used in geophysical surveying, exploring, developing, drilling, redrilling, completing, working over, producing, distributing, or testing of oil, gas and other mineral resources (Section 27-65-17).

Eliminates the contractor's tax for contracts involving redrilling, working over, drilling or completing oil and gas wells (removal of Section 27-65-21(2)).

Establishes a 4.5% tax rate on income from services performed in connection with oil, gas and other mineral resource development, including overhead services (Section 27-65-23).

Exempts operators from sales tax on Joint Interest Billing (JIB) rebilled to nonoperating working interest owners when the operator has already paid or accrued the sales tax on the equipment, materials, or services.

Effective date: July 1, 2024.