Louisiana House Bill HB70

Louisiana 2016 1st Special Session

• Introduced: 2/17/16

Caption

(Constitutional Amendment) Removes the prohibition related to the imposition of an additional tax or license on gas, authorizes the levy of a tax, fee, permit, or license on natural gas transported in Louisiana, and creates the Fair Share Fund

Impact

The proposed changes would significantly alter the financial landscape for natural gas transportation within the state. Currently, the constitution prevents any further taxation on natural resources; HB70 would enable the state to impose new levies which could contribute to addressing significant state needs, particularly in environmental and educational sectors. The Fair Share Fund is intended to act as a stable revenue source, which supporters argue is crucial for the preservation of Louisiana’s coast and the development of sustainable energy solutions.

Summary

House Bill 70 proposes a constitutional amendment to allow for the levying of additional taxes, fees, permits, or licenses on the transportation of natural gas in Louisiana. By removing the existing prohibition on such additional taxes, the bill seeks to generate revenue earmarked for various state initiatives. Specifically, the bill establishes the Fair Share Fund, which will receive funds from these levies to support coastal restoration efforts, improve transportation systems, and contribute to state universities' research on alternative fuel sources, among other initiatives.

Sentiment

The discussion around HB70 appears to be largely supportive among those who see the potential for increased funding for critical state projects. Proponents emphasize the necessity of improving Louisiana's coastal resilience and enhancing state transportation infrastructure. However, there may also be concerns from those worried about the economic impact of additional taxation on businesses involved in natural gas transportation, indicating a mix of optimism and caution regarding the bill’s implications.

Contention

Despite the generally positive reception towards the potential benefits of the Fair Share Fund, some points of contention might arise regarding the specifics of tax implementation and distribution of funds. Critics may argue that the new taxes could impose additional burdens on the natural gas industry, which is already significant in the state’s economy. Moreover, there might be debates on how effectively the collected funds will be allocated and whether they will genuinely address the intended issues.