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.))