HLS 161ES-41 ORIGINAL
2016 First Extraordinary Session
HOUSE BILL NO. 67
BY REPRESENTATIVE ROBBY CARTER
TAX/FUELS, SPECIAL: Imposes a tax on all oil and gas that runs through pipelines
located in the state
1 AN ACT
2To amend and reenact R.S. 47:643 and to enact Chapter 6-A of Subtitle II of Title 47 of the
3 Louisiana Revised Statutes of 1950, to be comprised of R.S. 47:700 through 704,
4 relative to the taxation of certain natural resources; to levy a tax on natural gas
5 transported in Louisiana; to provide for the use of the avails of the tax; to provide for
6 the imposition of the tax; to provide for deposits into and use of the Fair Share Fund;
7 to provide relative to definitions; to authorize the promulgation of rules and
8 regulations; to provide for reporting requirements; to provide for certain penalties;
9 to provide for effectiveness; and to provide for related matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 47:643 is hereby amended and reenacted and Chapter 6-A of Subtitle
12II of Title 47 of the Louisiana Revised Statutes of 1950, comprised of R.S. 47:700 through
13704, is hereby enacted to read as follows:
14 §643. Tax in addition to property taxes; restriction on further taxes on oil or gas
15 rights
16 The payment of the severance tax levied by this Part shall be in addition to,
17 and shall not affect the liability of the parties so taxed for, the payment of all state,
18 parochial, municipal, district, and special taxes levied upon their real estate and other
19 corporeal property, but no further or additional tax or license shall be levied or
20 imposed upon oil or gas leases or rights; nor shall any additional value be added to
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HB NO. 67
1 the assessment of land by reason of the presence of oil or gas therein or their
2 production therefrom. A tax, fee, license, or permit may be levied on natural gas
3 transported in this state. No severance tax or license shall be levied or imposed by
4 any parish or other local subdivision of the state.
5 * * *
6 CHAPTER 6-A. FAIR SHARE TAX ON NATURAL GAS
7 §700. Statement of intent and policy
8 Over the past century our state has been transformed. Pipelines which deliver
9 natural gas either from our state, or through it to the rest of the country, have
10 dissected our coast and accelerated its demise. Other regions of the country have
11 undeveloped sources of energy; however, these energy sources are not utilized or
12 developed for fear of damage to ground water, beaches, or the natural landscape. To
13 the other regions of the country, the costs to develop energy sources are too high.
14 Louisiana understands the concerns of the rest of the nation; however, it is wrong for
15 the full cost of providing those benefits to the rest of the country to fall completely
16 on Louisiana, as it does now. This state has provided much of the energy needs for
17 this country over the past one hundred years, and we are willing to continue to do so;
18 however, we can no longer carry the full burden without a fair revenue source to
19 correct the devastating effect it has wreaked, and will continue to wreak, on this
20 state. The tax levied in this Chapter attempts to address the many problems, caused
21 either directly or indirectly by the process of developing energy, which have plagued
22 Louisiana for decades. This Act attempts to assess a fair share of the cost to those
23 people receiving the benefit at the expense of Louisiana.
24 §701. Imposition of tax on natural gas
25 A.(1) There is hereby levied and imposed a tax on the use of more than one
26 mile of facilities for the transportation of natural gas through Louisiana. The tax for
27 the use of more than one mile of facilities for the transportation of natural gas shall
28 be equal to fifty cents for each unit of natural gas transported. The avails of the tax
29 shall be deposited into the Fair Share Fund established in the Constitution of
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HB NO. 67
1 Louisiana. Once the tax provided for in this Section has been levied, no further tax
2 on the use of facilities for the transportation of a unit of natural gas through
3 Louisiana shall be levied or imposed by the state.
4 (2) Every owner of natural gas using more than one mile of facilities for the
5 transportation of a unit of natural gas through this state shall be liable for the tax
6 levied and imposed by this Section. In the case of successive owners of the unit of
7 natural gas, each owner of the unit of natural gas shall pay a proportionate amount
8 of the tax. In the case of joint owners of the unit of natural gas, each owner shall pay
9 proportionately in accordance with his percentage of ownership.
10 B. Nothing in this Section shall be construed as imposing any tax on the
11 production, severance, or ownership of natural gas produced within or outside of
12 boundaries of this state. The tax levied pursuant to the provisions of this Section
13 shall be levied on the use of facilities for transportation of the natural gas through
14 Louisiana and not upon the natural gas or the property or rights from which the
15 natural gas is produced.
16 §702. Definitions
17 The definitions provided for in this Section shall have the meanings ascribed
18 to them unless the context clearly indicates otherwise:
19 (1) "Facilities" shall mean and include natural gas pipelines used for the
20 transportation of natural gas within the territorial boundaries of Louisiana.
21 (2) "Mile" shall mean five thousand two hundred and eighty feet.
22 (3) "Natural gas" shall mean a mixture of hydrocarbons that existed in
23 natural underground reservoirs and which is gaseous at atmospheric pressure
24 measured at a pressure base of 15.025 pounds per square inch absolute at a
25 temperature base of sixty degrees Fahrenheit.
26 (4) "Owner" shall mean the person, firm, or corporation having title to the
27 natural gas during all or any part of the transportation of the natural gas through a
28 facility in Louisiana.
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HB NO. 67
1 (5) "Transportation" means and includes the movement of a unit of natural
2 gas through a facility within the state of Louisiana through pipelines.
3 (6) "Unit of natural gas" means one thousand cubic feet of natural gas.
4 §703. Reports and payment of taxes
5 The tax levied pursuant to the provisions of this Chapter shall be due and
6 payable monthly. Tax payments and reports are due as follows:
7 (1) Every owner of natural gas transported through a facility in Louisiana
8 shall, on or before the last day of each month following the month that the tax is
9 applicable, submit to the Department of Revenue a statement, on forms approved by
10 the department, of the business conducted by the owner of the natural gas during the
11 preceding month. The monthly report shall include the gross quantity of natural gas
12 transported through a facility in Louisiana, the names of the owner or owners at the
13 time the natural gas is transported and the portion owned by each, and any other
14 reasonable and necessary information that the secretary may require for the proper
15 enforcement of the provisions of this Chapter. The monthly report shall be verified
16 by a written declaration that it is made under the penalties imposed for perjury.
17 (2) The secretary of the Department of Revenue may promulgate rules and
18 regulations in accordance with the Administrative Procedure Act as are necessary to
19 implement the provisions of this Chapter, including regulations regarding the
20 measurement of a unit of natural gas.
21 §704. Delinquent tax
22 The tax imposed by this Chapter shall become delinquent after the date fixed
23 for each monthly report to be filed in the office of the collector, and from such time
24 shall be subject to the addition of interest, penalties, and costs as provided for in R.S.
25 47:1501 et seq.
26 Section 2. This Act shall take effect and become operative on January 1, 2017, if and
27when the proposed amendment of Article VII, Section 4(B) of the Constitution of Louisiana
28contained in the Act that originated as House Bill No. ____ of this 2016 First Extraordinary
29Session of the Legislature is adopted at a statewide election and becomes effective.
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HB NO. 67
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.
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HB NO. 67
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)
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