Bill Text: MI HB5389 | 2009-2010 | 95th Legislature | Introduced

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Bill Title: Taxation; severance; severance tax on oil, gas, and water; modify and implement. Amends title & secs. 1, 11 & 12 of 1929 PA 48 (MCL 205.301 et seq.); adds heading for pt. 1 & adds pt. 2.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2009-09-22 - Printed Bill Filed 09/18/2009 [HB5389 Detail]

Download: Michigan-2009-HB5389-Introduced.html

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HOUSE BILL No. 5389

 

September 17, 2009, Introduced by Rep. Cushingberry and referred to the Committee on Tax Policy.

 

     A bill to amend 1929 PA 48, entitled

 

"An act levying a specific tax to be known as the severance tax

upon all producers engaged in the business of severing oil and gas

from the soil; prescribing the method of collecting the tax;

requiring all producers of such products or purchasers thereof to

make reports; to provide penalties; to provide exemptions and

refunds; to prescribe the disposition of the funds so collected;

and to exempt those paying such specific tax from certain other

taxes,"

 

by amending the title and sections 1, 11, and 12 (MCL 205.301,

 

205.311, and 205.312), section 11 as amended by 1989 PA 126, by

 

adding a heading for part 1, and by adding part 2.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

TITLE

 

     An act levying certain specific taxes; to provide for a

 

specific tax to be known as the severance tax upon all producers

 

engaged in the business of severing oil and gas from the soil;

 

prescribing to provide for a specific tax on the severance of water

 

by bottled water operators; to prescribe the method of collecting

 

the tax; requiring all producers of such products or purchasers

 

thereof to make collection of certain taxes; to require certain

 

reports; to provide penalties; to provide exemptions and refunds;

 

to prescribe the disposition of the funds so collected certain

 

taxes; and to exempt those paying such specific tax from certain

 

other taxes provide for certain other exemptions.

 

PART 1

 

     Sec. 1. There is hereby levied under this part upon each

 

producer engaged in the business of severing oil or gas from the

 

soil , oil or gas, a specific tax to be known as the severance tax.

 

     Sec. 11. (1) The word "oil" as used in this act As used in

 

this part:

 

     (a) "Oil" means petroleum oil, mineral oil, or other oil taken

 

from the earth.

 

     (b) (2) "Gas" as used in this act does not include methane gas

 

extracted from a landfill.

 

     Sec. 12. (1) As used in this part:

 

     (a) "Person" as used in this act shall include means any

 

person, firm, concern, receiver, receivers, trustee, executor,

 

administrator, agent, institution, association, partnership,

 

company, corporations, and persons acting under declarations of

 

trust.

 

     (b) (2) "Producer" as used in this act means a person who

 

owns, or is entitled to delivery of a share in kind or a share of

 

the monetary proceeds from the sale of, gas or oil as of the time

 

of its production or severance.

 

     (c) "This act" means part 1 of this act.

 

PART 2

 

     Sec. 21. This part shall be known and may be cited as the

 

"bottled water excise tax act".

 

     Sec. 22. As used in this part:

 

     (a) "Bottled water operator" means a person engaged in the

 

business of severing water from the ground who then bottles that

 

water for resale or provides that water to another person for

 

bottling for resale.

 

     (b) "Bottled water excise tax" means the excise tax imposed

 

under this part.

 

     (c) "Department" means the department of treasury.

 

     (d) "Person" means an individual, partnership, corporation,

 

association, governmental entity, or other legal entity.

 

     Sec. 23. (1) The bottled water excise tax is levied on each

 

bottled water operator engaged in the business of severing water

 

from the ground and bottling water in this state.

 

     (2) The bottled water excise tax is imposed at a rate of 20

 

cents per gallon.

 

     Sec. 24. (1) Each bottled water operator shall prepare and

 

submit to the department a report on or before the twenty-fifth day

 

of each month in the form and manner required by the department,

 

showing the total amount of water severed and bottled during the

 

preceding month and other information required by the department.

 

     (2) The bottled water excise tax shall be paid each month to

 

the department at the same time the report is submitted.

 

     Sec. 25. Each bottled water operator shall prepare, keep, and

 

preserve a full and complete record of all water severed and

 

bottled in this state, and that record shall be open at all times

 

to the inspection of the state tax commission.

 

     Sec. 26. (1) The bottled water excise tax imposed by this part

 

shall be administered by the department of treasury, under 1941 PA

 

122, MCL 205.1 to 205.31, and this part. In case of conflict

 

between 1941 PA 122, MCL 205.1 to 205.31, and this part, the

 

provisions of this part shall prevail.

 

     (2) The department may promulgate rules to implement this part

 

pursuant to the administrative procedures act of 1969, 1969 PA 306,

 

MCL 24.201 to 24.328.

 

     Sec. 27. All taxes, penalties, or costs paid to the department

 

under this part shall be paid into the state treasury and shall be

 

credited to the general fund of this state.