HOUSE BILL No. 5983


     July 1, 1998, Introduced by Reps. Lowe, Hammerstrom, Goschka, Cropsey, Horton, Bodem, Raczkowski and Voorhees and referred to the Committee on Forestry and Mineral Rights.


        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 section 14 (MCL 205.314), as amended by 1994 PA 307.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 1         Sec. 14.  (1)  All taxes shall accompany the report pro-

 2    vided for in section 2.  Except as provided in subsection (2),

 3     all  ALL taxes, penalties, or costs paid to the state treasurer

 4    under this act shall be paid into the state treasury and shall be

 5    credited as follows:

 6         (a) Two percent of the revenue received during each fiscal

 7    year, but not less than $1,000,000.00 shall be credited to the



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 1    orphan well fund created in  the orphan well fund act  PART 616

 2    OF THE NATURAL RESOURCES AND ENVIRONMENTAL PROTECTION ACT, 1994

 3    PA 451, MCL 324.61601 TO 324.61607.  However, whenever the unex-

 4    pended balance of the orphan well fund exceeds $3,000,000.00,

 5    further revenues shall not be credited to the orphan well fund

 6    under this subdivision until the unexpended balance of the orphan

 7    well fund becomes less than $3,000,000.00.

 8         (B) BEGINNING OCTOBER 1, 1998, 25% OF THE REVENUE RECEIVED

 9    DURING EACH FISCAL YEAR SHALL BE RETURNED TO COUNTIES, CITIES,

10    VILLAGES, AND TOWNSHIPS FROM WHICH THE OIL OR GAS WAS REMOVED AS

11    PROVIDED IN SECTIONS 14A AND 14B.

12         (C)  (b)  The remaining revenue received during each fiscal

13    year that is not allocated pursuant to  subdivision (a) 

14    SUBDIVISIONS (A) AND (B) shall be credited to the general fund of

15     the  THIS state and shall be available for any purpose for which

16    the general fund is made available by law.

17          (2) The revenue collected under subsection (1) in excess of

18     $16,000,000.00, shall be deposited in the general fund and shall

19     be allocated for the payment of credits for heating fuel costs

20     provided under section 527a of Act No. 281 of the Public Acts of

21     1967, being section 206.527a of the Michigan Compiled Laws, for

22     the fiscal year ending September 30, 1980 only. 













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