Bill No.: HB0133                  Drafter:  MQ

LSO No.:  08LSO-0364              Effective Date:

Enrolled Act No.:  HEA0036

Chapter No.:

Prime Sponsor:     Representative Anderson, R.

Catch Title:       Taxation of helium.

Subject:  Provides for the taxation of helium for severance tax purposes.

Summary/Major Elements:

· Background:  A major energy company operating in the western part of the state produces helium which is owned by the federal government.  Since the state is prohibited from imposing a property tax on property of the federal government, the bill addresses the severance tax of helium only.

· Note:  The bill only applies to certain helium which is leased by the federal government to any lessee pursuant to the Mineral Leasing Act of 1920.  Other helium found in the state is taxed the same as other natural gas.

· The bill clarifies the process for the imposition of severance tax on the production of helium.  The tax is imposed on the privilege of severing the helium from the ground.

· Bill provides extensive legislative findings to address the unique nature of the helium gas which is owned by the federal government.