Mississippi – Fuels Used in Oil Recovery Taxed at Reduced Rate

SALT Report 2242 – The Mississippi Legislature passed a Bill that will reduce the sales tax rate on sales of power and fuel to a producer of oil and gas for use in oil recovery or the sequestration of carbon dioxide.

Specifically, the Bill states that the reduced sales tax rate of 1.5% will be imposed on the sale of electricity, current, power, steam, coal, natural gas, liquefied petroleum gas, or other fuel to a producer of oil and gas for use directly in enhanced oil recovery using carbon dioxide and/or the permanent sequestration of carbon dioxide in a geological formation.

House Bill 841 was approved by the Governor on March 7, 2013 and is effective July 1, 2013.

For Further Information

Mississippi State Legislature – House Bill 841, Laws 2013