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 169 Original 2017 Regular Session Robby Carter
Abstract: Extends the natural gas franchise tax to oil franchises and increases the rate of the tax.
Present law levies a 1% tax on the gross receipts of every domestic and foreign corporation engaged
in the business of transporting natural gas by pipeline in La.
Proposed law increases the tax on the gross receipts from 1% to 2% and extends the tax to businesses
transporting oil within the state.
Present law defines "cost of gas purchased for resale" as the actual purchase price paid for the gas
being resold, including third-party transportation charges.
Present law defines "gross receipts" as the total amount of billings for services rendered, including
all receipts from business beginning and ending within the state and a proportion of that business
passing through, into, or out of the state. Further authorizes a deduction in an amount equal to the
cost of gas purchased for resale and excludes nonoperating revenues from the definition of "gross
receipts", including all of the following:
(1)Dividend and interest income.
(2)Tax refunds.
(3)Merchandising.
(4)Rentals from land, buildings, and other nonutility property and storage revenues.
Present law provides the method by which the average gross receipts per intrastate mile of
transportation shall be determined.
Present law provides for quarterly reporting periods for taxpayers to show the amount of gross
receipts during the quarter from the operation of its business in the state and provides for payment
of the tax.
Proposed law retains present law and extends its application to businesses engaged in transporting
oil within the state.
Present law requires the monies collected to be used for the state hospital board and for payment of old age assistance and other social security benefits, to be apportioned by the governor.
Proposed law changes present law and requires the monies collected to be deposited into the state
general fund, after having first been credited to the Bond Security and Redemption Fund.
Effective July 1, 2017.
(Amends R.S. 47:1031, 1032(1) and (2), 1033(B), 1034, 1036, and 1040)