(Constitutional Amendment) Excludes the first one thousand dollars of certain natural resource's value from the levy of ad valorem severance tax
Impact
The proposed amendment seeks to align the tax approach more favorably for those engaging in the extraction of natural resources by providing clarity and relief from taxes on the lower-value items. This change is expected to have significant implications for Louisiana's economy, particularly in the timber, oil, and gas sectors, where the severance tax is applied. If enacted, it could help stimulate more activity in these industries by lowering the upfront costs associated with severing natural resources.
Summary
House Bill 520 proposes a constitutional amendment to exclude the first $1,000 of the value of natural resources severed from the soil or water from the imposition of an ad valorem severance tax. This bill aims to amend Article VII, Section 4(B) of the Louisiana Constitution, making it clear that such value will not be subject to the severance tax which currently may be levied on natural resources at the time they are severed from their source. If passed, the amendment would provide a financial benefit to resource owners by reducing their tax liabilities on these products.
Sentiment
The sentiment surrounding HB 520 appears to be mixed, with some stakeholders supporting the measure for its potential to encourage resource extraction and economic activity, while others may express concern regarding the potential loss of public revenue from the tax. Proponents argue that this adjustment would enhance the competitiveness of Louisiana's natural resource sector, while critics may worry about the implications for state funding and resource management.
Contention
Notably, the bill has raised points of contention regarding how such tax exemptions could potentially impact state revenues and funding for public services. Opponents may argue that reducing the tax base for severance taxes could lead to shortfalls in government funding, impacting statewide initiatives and support structures. The debate may focus on balancing the interests of resource companies with the need for adequate public funding and oversight of natural resource management.
(Constitutional Amendment) Provides for the methodology of valuation of oil and gas wells for the purpose of ad valorem assessment (EN SEE FISC NOTE LF RV See Note)
(Constitutional Amendment) Removes the prohibition related to the imposition of an additional tax or license on gas, authorizes the levy of a tax, fee, permit, or license on natural gas transported in Louisiana, and creates the Fair Share Fund
(Constitutional Amendment) Removes the prohibition related to the imposition of an additional tax or license on gas, authorizes the levy of a tax, fee, permit, or license on natural gas transported in Louisiana, and creates the Fair Share Fund
Constitutional amendment to repeal severance taxes upon oil and gas and to allow the levy of a tax upon hydrocarbon processing and to require a dedication of the first use of such taxes to replace constitutional dedications of severance tax and to require the distribution of the remainder for state highways or bridges, the Coastal Protection and Restoration Fund, and to or for the use of schools, colleges and universities, and other post secondary education institutions. (2/3-CA13sl(A)) (EG INCREASE SD RV See Note)
(Constitutional Amendment) Removes the prohibition related to the imposition of an additional tax or license on gas, authorizes the levy of a tax, fee, permit, or license on natural gas transported in Louisiana, and creates the Fair Share Fund (OR INCREASE SD RV See Note)