The original instrument was prepared by Laura Gail Sullivan. The following digest,
which does not constitute a part of the legislative instrument, was prepared by Riley
Boudreaux.
DIGEST
SB 271 Engrossed 2015 Regular Session White
Present law provides for taxation of special fuels - including compressed natural gas, liquified
natural gas, and liquified petroleum gas - sold, used, or consumed in La. for the operation of motor
vehicles licensed or required to be licensed for highway use at the rate of 16ยข per gallon.
Proposed law retains present law.
Present law specifies that present law 16-cent-per-gallon tax does not apply to compressed natural
gas, liquefied natural gas, or liquefied petroleum gas sold to, delivered to, or used by any person who
pays an annual fuel tax levied under other provisions of present law enforced by requiring the
taxpayer to obtain a decal on his motor vehicle, which is to be enforced when the vehicle is
inspected.
Proposed law deletes this exception and method of taxation and removes the provisions allowing for
an annual fuel tax enforced by the decal.
Proposed law provides for determinations of a special fuel's energy content in relation to a gallon of
gasoline or diesel beginning Jan. 1, 2016. Specifies that for purposes of levying the 16-cent-per-
gallon tax:
(1)The gasoline gallon equivalent shall be 5.660 pounds of compressed natural gas.
(2)The diesel gallon equivalent shall be 6.060 pounds of liquified natural gas.
(3)The diesel gallon equivalent shall be 4.2 pounds of liquified petroleum gas.
Proposed law requires the tax to be collected by any person or entity upon the delivery of the fuel
into the fuel supply tank of a motor vehicle. However, requires any person or entity to obtain a
license for utilizing, delivering, or selling such fuels and otherwise provides for requirements for
collection of the per-gallon tax by the licensed users, dealers, and sellers; application, suspension,
cancellation, and revocation of licenses; bond requirements; returns, payments, credits, refunds, and
fines, penalties, and interest for failure to pay associated with the tax; records retention and
inspection; and investigative and enforcement authority, including authorization for search and
seizure and criminal penalties for certain prohibited acts.
Proposed law authorizes and requires the Commissioner of Agriculture to assist the secretary of the
Dept. of Revenue in collecting the taxes and any interest or penalties due pursuant to the provisions
of proposed law. Requires the commissioner, in consultation with the secretary, to promulgate rules pursuant to the Administrative Procedure Act to provide procedures and processes for the orderly
regulation and enforcement of the laws governing taxation of compressed natural gas, liquified
natural gas, and liquified petroleum gas.
Proposed law requires the Dept. of Revenue to collect a fee of four thirty-seconds of one cent per
gallon For the purpose of defraying the expenses connected with the inspection, testing, and
analyzing of such fuels upon the delivery of the fuel into the supply tank of a motor vehicle and
requires the fee to be remitted to the department when the tax on such fuel is remitted to the
department.
Proposed law makes such fuels subject to any other tax which may be levied on special fuels by any
other provision of law and specifies that it is subject to the Act which originated as HB736 of the
2015 Regular Session of the Legislature, or any other Act of such session, which increases the tax
on gasoline or special fuels.
Effective July 1, 2015.
(Amends R.S. 3:4602(12.1) and 4684 and R.S. 47:818.2(intro para), (18), (22), (43), (44), (58), and
(63), and 818.22; adds R.S. 3:4690.1 and R.S. 47:818.111-818.132; repeals R.S. 47:818.101-104)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Subjects the fuels to a fee of four thirty-seconds of one cent per gallon.
2. Changes the effective date from January 1, 2016 to July 1, 2015.
3. Proposed law makes such fuels subject to any other tax which may be levied on
special fuels by any other provision of law.
4. Requires the tax to be collected by any person or entity upon the delivery of the fuel
into the fuel supply tank of a motor vehicle.