SLS 14RS-4436 ORIGINAL
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Regular Session, 2014
SENATE CONCURRENT RESOLUTI ON NO. 142
BY SENATOR GALLOT
TAX/TAXATION. Requests the Department of Revenue and the Department of Natural
Resources, in consultation with the Legislative Auditor, to take all action necessary to collect
oil and gas severance tax and mineral royalties and to establish procedures to verify the
accuracy of payments and refunds thereof, all to be monitored by the Legislative Auditor and
reported to the legislature.
A CONCURRENT RESOLUTI ON1
To urge and request the Department of Revenue to take action to avoid the running of2
prescription on all claims for oil and gas severance taxes and, in consultation with3
the Louisiana Legislative Auditor and pursuant to his advice, to conduct audits of4
taxes and payments and establish procedures to verify the accuracy of self-reported5
data used to determine the amount of severance taxes and refunds; to urge and6
request the Department of Natural Resources to verify and collect the amounts of7
mineral royalty payments owed to the state; to direct the Louisiana Legislative8
Auditor to monitor the actions of such departments and file a written report.9
WHEREAS, a performance audit by the Louisiana Legislative Auditor found that an10
undetermined amount of severance taxes that was owed was not paid to the state; and11
WHEREAS, the amount of unpaid severance taxes identified through field audits12
decreased from previous years; and13
WHEREAS, the performance audit found that the Department of Revenue's review14
of severance tax refund requests should be improved; and15
WHEREAS, the performance audit found that the Department of Revenue's review16
of the accuracy of the self-reported data used to determine the amount of severance taxes17
owed to the state should be improved upon; and18 SCR NO. 142
SLS 14RS-4436 ORIGINAL
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WHEREAS, underpayment of severance taxes may be indicative of an underpayment1
of mineral royalties due to the state pursuant to mineral leases of state lands and water2
bottoms owned by the state; and3
WHEREAS, the payment of severance taxes and mineral royalties due to the state4
represent considerable sources of revenue to the state and should be collected; and5
WHEREAS, because of limited revenues the state has made severe cuts to education,6
health care, and other programs which provide assistance to citizens and therefore the state7
is in need of all revenue due and owing to it.8
THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby9
urge and request the Department of Revenue to take all action necessary to cause the10
collection of all severance taxes due to the state and to avoid the running of prescription on11
severance taxes due and owing to the state and the Department of Natural Resources to take12
all action necessary to cause the collection of all mineral royalty due and owing to the state.13
BE IT FURTHER RESOLVED that the Department of Revenue is hereby urged and14
requested, in consultation with the Louisiana Legislative Auditor, to conduct a study to15
determine what resources, tools, and other means are needed and available to perform yearly16
reviews or audits of all severance taxes which may be owed to ensure that the state receives17
complete, accurate, and timely payments.18
BE IT FURTHER RESOLVED that the Department of Revenue is hereby urged and19
requested, in consultation with the Louisiana Legislative Auditor, to develop, implement,20
and maintain a procedure to verify the accuracy of the self-reported data used to determine21
the amount of severance taxes owed to the state and its citizens, and the accuracy of the22
amount of the refunds of taxes claimed.23
BE IT FURTHER RESOLVED that the Department of Natural Resources is hereby24
urged and requested, in consultation with the Louisiana Legislative Auditor, to review and25
conduct yearly audits of all who may owe mineral royalties to ensure that the state receives26
complete, accurate, and timely payments.27
BE IT FURTHER RESOLVED that the Department of Natural Resources is hereby28
urged and requested, in consultation with the Louisiana Legislative Auditor, to develop,29
implement, and maintain a procedure to verify the accuracy of the royalty payments.30 SCR NO. 142
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BE IT FURTHER RESOLVED that the Louisiana Legislative Auditor is hereby1
directed to advise, consult with, and monitor the actions of the Department of Revenue and2
Department of Natural Resources in accomplishing all of the requirements of this3
Resolution, and to file a written report with the Legislative Audit Advisory Council and the4
chairs of the Senate Committee on Revenue and Fiscal Affairs and Finance and the House5
Committee on Ways and Means and Appropriations, which shall include but not be limited6
to the following:7
(1) The advice and consultation given to the Department of Revenue and the8
Department of Natural Resources with respect to the efficient and effective accomplishment9
of the requirements of this Resolution, and how and whether the advice and consultation10
were acted upon by the departments.11
(2) An evaluation of the efficiency, effectiveness, and operation of the program12
established by the Department of Revenue for auditing oil and gas severance taxes due to13
the state, and the development, implementation, and maintenance of the procedure to verify14
the accuracy of self-reported oil and gas severance tax data.15
(3) An evaluation of the efficiency, effectiveness, and operation of the program16
established by the Department of Natural Resources for reviewing and auditing of mineral17
royalties due the state.18
BE IT FURTHER RESOLVED that the state of Louisiana has determined that19
severance tax payments are independently owed to the state and its citizens pursuant to state20
law, and that mineral royalty payments are independently owed to the state and its citizens21
pursuant to contracts between the state and its lessees.22
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the23
Louisiana Legislative Auditor, the secretary of the Louisiana Department of Revenue, and24
the secretary of the Department of Natural Resources.25 SCR NO. 142
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Gallot SCR No.
Requests the Department of Revenue (DOR) to take all action necessary to cause the
collection of severance taxes due to the state and to avoid the running of prescription on
severance taxes, and for the Department of Natural Resources (DNR) to take all action
necessary to cause the collection of all mineral royalties due and owing to the state and to
avoid the prescription of any royalty claims.
Requests DOR in consultation with the Louisiana Legislative Auditor (the Auditor) to
conduct a study to determine what resources, tools, and other means are needed and
available to perform yearly reviews or audits of severance taxes which may be owed to
ensure that the state receives complete, accurate, and timely payments and to develop,
implement, and maintain a procedure to verify the accuracy of the self-reported data used
to determine the amount of severance taxes owed to the state and the accuracy of the amount
of refunds claimed.
Requests DNR in consultation with the Auditor to review and conduct yearly audits of all
who may owe mineral royalties to ensure that the state receives complete, accurate, and
timely payments and to develop, implement, and maintain a procedure to verify the accuracy
of the royalty payments.
Directs the Auditor to advise, consult with, and monitor the actions of DOR and DNR in
accomplishing all of the requirements of the Resolution and to file a written report with the
Legislative Audit Advisory Council and the chairs of Revenue and Fiscal Affairs and
Finance and Ways and Means and Appropriations which must include, but not be limited to
the following:
(1)The advice and consultation given to the departments and how and whether the
advice and consultation was acted upon by the departments.
(2)An evaluation of the efficiency, effectiveness, and operation of DOR's program for
auditing oil and gas severance taxes, and the development, implementation, and
maintenance of the procedure to verify the accuracy of self-reported oil and gas
severance tax data.
(3)An evaluation of the efficiency, effectiveness, and operation of DNR's program
established by the Department of Natural Resources for reviewing and auditing of
mineral royalties.
States that the state of Louisiana has determined that severance tax payments are
independently owed to the state and its citizens pursuant to state law, and that mineral
royalties are independently owed to the state and its citizens pursuant to contracts between
the state and its lessees.