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 67 Original 2016 First Extraordinary Session Robby Carter
Abstract: Levies a tax (50¢ per 1,000 cubic feet) upon the use of a transportation facility (pipeline)
more than one mile in length for the transportation of natural gas through La.
Present law and present constitution prohibits taxes or license in addition to the severance tax on oil
or gas leases or rights.
Proposed law changes present law by removing the prohibition of additional tax or license on gas
and specifically authorizes the levy of a tax, fee, license, or permit on natural gas transported in this
state.
Proposed law provides for the intent and policy of proposed law.
Proposed law levies a tax on the use of more than one mile of facilities (pipelines) for the
transportation of natural gas through La. The tax shall be equal to 50¢ for each unit (1,000 cubic
feet) of natural gas. Provides for the avails of the tax to be deposited into the Fair Share Fund
established in the constitution.
Proposed law provides that once the tax provided for in proposed law has been levied, no further tax
on the use of facilities for the transportation of a unit of natural gas through La. shall be levied or
imposed by the state.
Proposed law requires every owner of natural gas using more than one mile of facilities for the
transportation of a unit of natural gas through this state to be liable for the tax in proportion with
each owner's percentage of ownership of the natural gas.
Proposed law defines "facilities" as natural gas pipelines used for the transportation of natural gas
within the territorial boundaries of La. "Natural gas" is defined as a mixture of hydrocarbons that
existed in natural underground reservoirs and which is gaseous at atmospheric pressure measured
at a pressure base of 15.025 pounds per square inch absolute at a temperature base of 60 degrees
Fahrenheit.
Proposed law defines "transportation" as the movement of a unit of natural gas through a facility
within the state through the use of a pipeline. Further provides that a "unit of natural gas" means
1,000 cubic feet of natural gas.
Proposed law requires the tax levied by proposed law to be due and payable monthly. Every owner of natural gas transported through a facility in La. shall, on or before the last day of each month
following the month that the tax is applicable, submit to the Dept. of Revenue a statement, on forms
approved by the department, of the business conducted by the owner of the natural gas during the
preceding month. The monthly report shall include the gross quantity of natural gas transported
through a facility in La., the names of the owner or owners at the time the natural gas is transported
and the portion owned by each, and any other reasonable and necessary information that the secretary
may require.
Proposed law authorizes the Dept. of Revenue to promulgate rules and regulations in accordance
with the Administrative Procedure Act as are necessary to implement the provisions of proposed law.
Proposed law provides for penalties of delinquent tax.
Effective on Jan. 1, 2017, if and when the proposed amendment of Article VII, Section 4(B) of the
Const. of La. contained in the Act which originated as House Bill No. ____ of this 2016 First
Extraordinary Session is adopted at a statewide election and becomes effective.
(Amends R.S. 47:643; Adds R.S. 47:700-704)