Louisiana House Bill HB436

Louisiana 2011 Regular Session

• Introduced: 4/25/11
• Refer: 4/25/11

Caption

Levies a tax on the transportation of natural gas through pipelines in La. and provides for the disposition of the revenues (OR INCREASE SD RV See Note)

Impact

The proposed legislation significantly alters the existing tax landscape by allowing additional taxation on the transportation of natural gas, which was previously prohibited. This change is expected to impact the state's environmental and economic policies by ensuring that companies utilizing Louisiana's pipelines for natural gas transport contribute fairly. As a result, local governments will not have the authority to impose further taxation on this matter, streamlining the state's revenue system and potentially increasing financial resources for public projects and infrastructure.

Summary

House Bill 436 is designed to levy a tax on the transportation of natural gas through pipelines that extend for more than one mile within the state of Louisiana. This transportation tax is set at fifty cents per unit, defined as one thousand cubic feet of natural gas. The bill intends to provide a fair revenue source to the state as it seeks to address the burdens that energy development has placed on Louisiana's environment and resources. The revenues from this tax will be directed into the Fair Share Fund, established in the state's constitution, thereby ensuring that the financial benefits from natural gas transportation contribute back to the state and its citizens.

Sentiment

The sentiment surrounding HB 436 appears to be supportive among local lawmakers who see it as a necessary step toward economic fairness and environmental responsibility. However, there are concerns among some stakeholders regarding the potential economic burden that this tax could impose on natural gas companies, particularly those operating under thin margins. Ultimately, this tension highlights differing perspectives on balancing revenue generation with business interests in the state's energy sector.

Contention

Notable points of contention in the discussions around HB 436 include the implications of subsidizing the costs that natural gas transportation inflicts on the state's ecology and infrastructure. Critics argue that while the intention behind the bill is to generate necessary revenue to mitigate environmental impact, it may inadvertently become a financial burden on companies already facing challenges. Additionally, there is concern over how the funds collected will be allocated and whether they will indeed result in meaningful contributions to restoring and preserving Louisiana's coastal areas.