HLS 13RS-708 ENGROSSED
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2013
HOUSE BILL NO. 166
BY REPRESENTATIVE ANDERS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/SEVERANCE TAX: Provides relative to determining the market value of trees,
timber, and pulpwood for purposes of levying the severance taxes
AN ACT1
To amend and reenact R.S. 47:633(1), (2), and (3) and to enact R.S. 47:634(4), relative to2
the severance tax; to provide relative to the severance tax on trees, timber, and3
pulpwood; to provide relative to the valuation of such natural resources; to authorize4
the Louisiana Tax Commission to assist in valuation of such natural resources; to5
provide for certain definitions; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:633(1), (2), and (3) are hereby amended and reenacted and R.S.8
47:634(4) is hereby enacted to read as follows:9
§633. Rates of tax10
The taxes on natural resources severed from the soil or water levied by R.S.11
47:631 shall be predicated on the quantity or value of the products or resources12
severed and shall be paid at the following rates:13
(1) On trees and timber, except pulpwood, two and one-quarter percent of14
the then current average stumpage market value of such timber, to be determined15
annually on the second Monday of in December by the Louisiana Forestry16
Commission and the Louisiana Tax Commission, such value to be effective on the17
first day of January in the following year and continuing until the next succeeding18
January. The Louisiana Tax Commission may assist in determining the value.19 HLS 13RS-708 ENGROSSED
HB NO. 166
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(2) On pulpwood, five percent of the then current average stumpage market1
value of such pulpwood, to be determined annually on the second Monday of in2
December by the Louisiana Forestry Commission and the Louisiana Tax3
Commission, such value to be effective on the first day of January in the following4
year and continuing until the next succeeding January. The Louisiana Tax5
Commission may assist in determining the value.6
(3) The Louisiana Forestry Commission and the Louisiana Tax Commission7
shall base their determination of the market value of trees, timber, and pulpwood as8
provided in Paragraphs (1) and (2) of this Section exclusively on with consideration9
of sales of timber as reported to the Louisiana Department of Revenue and as10
published in the "Quarterly Report of Forest Products" by the Louisiana Department11
of Agriculture and Forestry.12
* * *13
§634. Definitions 14
The following terms as used in this Part shall have the following meanings15
ascribed to them: 16
* * *17
(4) "Time and place of severance" or "time of severance" means the date,18
point, or place at which the tax levied on the quantity or value of a natural resource19
can be determined for purposes of payment of the severance tax. For purposes of20
payment of severance taxes only, oil or condensate shall be considered severed when21
the product is transferred from the producer to the first purchaser at the point of22
disposition in an arm's-length transaction.23
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Anders HB No. 166
Abstract: Authorizes, rather than requires, the La. Tax Commission to assist the La.
Forestry Commission in determining the annual value of trees, timber, and pulpwood
for purposes of levying severance taxes. HLS 13RS-708 ENGROSSED
HB NO. 166
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Present law requires the state tax levied on natural resources severed from the soil or water
to be predicated on the quantity or value of the products or resources severed.
Present law provides that the rate of the tax levied on trees and timber is 2.25% of the current
average stumpage market value of timber and the rate of the tax levied on pulpwood is 5%
of the current average stumpage market value of pulpwood. Stumpage value is determined
annually on the second Monday of Dec. by the La. Forestry Commission and the La. Tax
Commission and is effective on the first day of Jan. in the following year, continuing until
the next succeeding Jan.
Proposed law retains present law as to the rate of these taxes but changes the present law
from a requirement that the La. Tax Commission determine the annual stumpage value to an
authorization that the La. Tax Commission assist the La. Forestry Commission in determining
same. Proposed law further changes the time of determining the annual stumpage value from
the second Monday in Dec. to Dec.
Present law requires the La. Forestry Commission and the La. Tax Commission to base the
determination of the market value of trees, timber, and pulpwood exclusively on sales of
timber as reported to the Dept. of Revenue and as published in the "Quarterly Report of
Forest Products" by the La. Dept. of Agriculture and Forestry.
Proposed law changes present law by deleting the reference to the La. Tax Commission since
the La. Tax Commission's participation in determining the market value of trees, timber, and
pulpwood is permissive rather than mandatory. Proposed law further changes the
requirement that the determination of market value of trees, timber, and pulpwood be based
exclusively on timber sales to a determination that considers timber sales.
Proposed law defines "time and place of severance" or "time of severance" for purposes of
payment of severance tax, as the date, point, or place at which the tax levied on the quantity
or value of a natural resource can be determined. Further provides that for purposes of
payment of severance taxes only, oil or condensate shall be considered severed when the
product is transferred from the producer to the first purchaser at the point of disposition in an
arm's-length transaction.
(Amends R.S. 47:633(1), (2), and (3); adds R.S. 47:634(4))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Adds a definition for "time and place of severance" or "time of severance" for
purposes of payment of the severance tax.
2. Adds provision that for purposes of payment of severance taxes only, oil or
condensate shall be considered severed when the product is transferred from the
producer to the first purchaser at the point of disposition in an arm's-length
transaction.