HLS 15RS-601 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 483
BY REPRESENTATIVE JAY MORRIS
TAX/SEVERANCE-EXEMPTI ON: Reduces the severance tax exemption for certain
horizontally drilled wells
1 AN ACT
2To amend and reenact R.S. 47:633(7)(c)(iii)(introductory paragraph), relative to severance
3 tax; to provide with respect to the exemption for certain horizontally drilled wells;
4 to provide for the period of exemption; and to provide for related matters.
5Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:633(7)(c)(iii)(introductory paragraph) is hereby amended and
7reenacted to read as follows:
8 ยง633. Rates of tax
9 The taxes on natural resources severed from the soil or water levied by R.S.
10 47:631 shall be predicated on the quantity or value of the products or resources
11 severed and shall be paid at the following rates:
12 * * *
13 (7)
14 * * *
15 (c)
16 * * *
17 (iii) All severance tax shall be suspended, for a period of twenty-four twelve
18 months or until payout of the well cost is achieved, whichever comes first, on any
19 horizontally drilled well, or, on any horizontally drilled recompletion well, from
20 which production commences after July 31, 1994.
21 * * *
Page 1 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-601 ORIGINAL
HB NO. 483
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)]
HB 483 Original 2015 Regular Session Jay Morris
Abstract: Limits the severance tax "exemption" for horizontal wells and horizontally
drilled recompletion wells from 24 months to 12 months or until payout of the well
cost is achieved, whichever occurs first.
Present law provides for a tax on natural resources severed from the soil or water based upon
quantity or value of the products severed.
Present law suspends the levy of 100% of the severance tax on production from a
horizontally drilled well or horizontally drilled recompletion well for a period of 24 months
or until payout of the well cost is achieved, whichever occurs first.
Proposed law retains present law but reduces the time for suspension of severance taxes on
production from these wells from 24 months to 12 months or until payout of the well cost
is achieved, whichever occurs first.
(Amends R.S. 47:633(7)(c)(iii)(intro. para.))
Page 2 of 2
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.