HLS 15RS-1273 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 558
BY REPRESENTATIVE JAMES
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 reduce the exemption for certain horizontally drilled wells; to provide for the
5 period of exemption; to provide for an effective date; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:633(7)(c)(iii)(introductory paragraph) is hereby amended and
9reenacted to read as follows:
10 ยง633. Rates of tax
11 The taxes on natural resources severed from the soil or water levied by R.S.
12 47:631 shall be predicated on the quantity or value of the products or resources
13 severed and shall be paid at the following rates:
14 * * *
15 (7)
16 * * *
17 (c)
18 * * *
19 (iii) All Fifty percent of all severance tax shall be suspended, for a period of
20 twenty-four forty-eight months or until payout of the well cost is achieved,
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1273 ORIGINAL
HB NO. 558
1 whichever comes first, on any horizontally drilled well, or, on any horizontally
2 drilled recompletion well, from which production commences after July 31, 1994.
3 * * *
4 Section 2. This Act shall become effective on July 1, 2015; if vetoed by the governor
5and subsequently approved by the Legislature, this Act shall become effective on July 1,
62015, or on the day following such approval by the Legislature, whichever is later.
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 558 Original 2015 Regular Session James
Abstract: Reduces the severance tax "exemption" for horizontal wells and horizontally
drilled recompletion wells from 100% to 50% of the severance tax and increases the
time within which the "exemption" may be claimed from 24 months to 48 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 amount of the suspension from 100% to
50% of the severance taxes and increases the time for suspension of severance taxes on
production from these wells from 24 months to 48 months or until payout of the well cost
is achieved, whichever occurs first.
(Amends R.S. 47:633(7)(c)(iii)(intro. para.))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.