2013 House Bill 4885 / 2014 Public Act 82

Cut tax on oil and gas from "enhanced recovery"

Introduced in the House

June 20, 2013

Introduced by Rep. Aric Nesbitt (R-66)

To reduce the “severance tax” or royalty paid to the state on oil and gas extracted from state land to 3.3 percent for oil and 3 percent for gas and oil extracted using “enhanced recovery” technology. Note: This is not the same as hydraulic fracturing (“fracking”).

Referred to the Committee on Energy and Technology

Feb. 4, 2014

Reported without amendment

With the recommendation that the substitute (H-2) be adopted and that the bill then pass.

Feb. 12, 2014

Substitute offered

The substitute passed by voice vote

Feb. 13, 2014

Passed in the House 85 to 25 (details)

To reduce the “severance tax” or royalty paid to the state on oil and gas extracted from state land to 4 percent for hydrocarbons extracted using “enhanced recovery” technology, which injects carbon dioxide into wells to force out more product (this is different from hydraulic fracturing.

Received in the Senate

Feb. 18, 2014

Referred to the Committee on Environment, Energy, and Technology

March 5, 2014

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

March 13, 2014

Substitute offered

The substitute passed by voice vote

March 19, 2014

Amendment offered by Sen. Hoon-Yung Hopgood (D-8)

To not grant the proposed lower tax rate to a driller convicted of antitrust violations.

The amendment passed by voice vote

Amendment offered by Sen. Hoon-Yung Hopgood (D-8)

To prohibit oil and gas drillers who are late paying the state “severance tax” on extracted minerals from bidding on new gas and oil leases for two years.

The amendment failed 13 to 25 (details)

Passed in the Senate 25 to 13 (details)

To reduce the “severance tax” or royalty paid to the state on oil and gas extracted from state land to 4 percent for hydrocarbons extracted using “enhanced recovery” technology, which injects carbon dioxide into wells to force out more product (this is different from hydraulic fracturing). The current tax ranges from 5.0 to 6.6 percent.

Received in the House

March 19, 2014

March 20, 2014

Passed in the House 82 to 28 (details)

To concur with the Senate-passed version of the bill.

Signed by Gov. Rick Snyder

April 1, 2014