Bill No.: HB0287 Drafter: MQ


LSO No.: 09LSO-0636 Effective Date: 3/15/2009


Enrolled Act No.: HEA0088


Chapter No.: 153


Prime Sponsor: Representative Philp


Catch Title: Helium-property tax.


Subject: Provides for the ad valorem (property) taxation on the production of helium.




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. The state is generally prohibited from imposing a tax on property of the federal government. Last year, the legislature passed 08 HB 133 which addressed the imposition of a severance tax on the helium produced.


         Note: The bill only addresses certain helium which is leased by the federal government to any lessee pursuant to the Mineral Leasing Act of 1920. Under that act, the federal government retains ownership of the helium, but leases the production to a 3rd party. Other helium in the state is taxed the same as other natural gas.


         The bill clarifies the process for the imposition of property tax on the production of helium. The tax is imposed on the person producing the helium.


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