HLS 20RS-140 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 444
BY REPRESENTATIVE BAGLEY
TAX/SEVERANCE TAX: (Constitutional Amendment) Provides relative to the amount of
severance tax collected by the state and remitted to parishes
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(D)(3) of the Constitution of Louisiana and to
3 repeal Article VII, Section 4(D)(4) of the Constitution of Louisiana, relative to the
4 remittance and allocation of certain severance tax collections; to provide for the
5 amount of certain severance taxes remitted and allocated to parishes; to authorize the
6 legislature to increase such amount in law; to provide for certain limitations and
7 requirements; to remove provisions providing for a maximum remitted to parishes;
8 to remove provisions requiring certain uses for amounts remitted; to provide for
9 effectiveness; to provide for submission of the proposed amendment to the electors;
10 and to provide for related matters.
11 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
12elected to each house concurring, that there shall be submitted to the electors of the state of
13Louisiana, for their approval or rejection in the manner provided by law, a proposal to
14amend Article VII, Section 4(D)(3) of the Constitution of Louisiana, to read as follows:
15 §4. Income Tax; Severance Tax; Political Subdivisions
16 * * *
17 (D)
18 * * *
19 (3) Effective July 1, 2007, one-fifth of the severance tax on all natural
20 resources other than sulphur, lignite, or timber shall be remitted to the governing
Page 1 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-140 ORIGINAL
HB NO. 444
1 authority of the parish in which severance or production occurs. The initial
2 maximum amount remitted to the parish in which severance or production occurs
3 shall not exceed eight hundred fifty thousand dollars. The maximum amount
4 remitted shall be increased each July first, beginning in 2008, by an amount equal to
5 the average annual increase in the Consumer Price Index for all urban consumers, as
6 published by the United States Department of Labor, for the previous calendar year,
7 as calculated and adopted by the Revenue Estimating Conference. Notwithstanding
8 any contrary provision in this constitution, the legislature may increase by law the
9 amount of severance tax collections on all natural resources other than sulphur,
10 lignite, and timber to be remitted to the governing authority of a parish.
11 * * *
12 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
13elected to each house concurring, that there shall be submitted to the electors of the state of
14Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
15Article VII, Section 4(D)(4) of the Constitution of Louisiana.
16 Section 3. Be it further resolved that this proposed amendment shall be submitted
17to the electors of the state of Louisiana at the statewide election to be held on November 3,
182020.
19 Section 4. Be it further resolved that on the official ballot to be used at the election,
20there shall be printed a proposition, upon which the electors of the state shall be permitted
21to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
22follows:
23 Do you support an amendment to authorize one-fifth of the severance tax
24 collected on all natural resources other than sulphur, lignite, and timber to be
25 remitted to parish governing authorities, to authorize the legislature to
26 increase by law the amount of such severance tax remitted to parish
27 governing authorities, to remove provisions establishing a maximum amount
28 of severance tax to be remitted to parish governing authorities, to remove
29 contingent provisions setting the amount of such severance tax remitted to
Page 2 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-140 ORIGINAL
HB NO. 444
1 parish governing authorities, and to remove limitations on the use of
2 severance tax remitted to parish governing authorities? (Amends Article VII,
3 Section 4(D)(3) and Repeals Article VII, Section 4(D)(4))
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 444 Original 2020 Regular Session Bagley
Abstract: Provides for the amount of certain severance tax collections remitted to parish
governing authorities and authorizes the legislature to increase the amount remitted
to parish governing authorities in law.
Present constitution provides that 1/5 of the severance tax on all natural resources other than
sulphur, lignite, or timber shall be remitted to the governing authority of the parish in which
severance or production occurs. The maximum amount remitted to the parish in which
severance or production occurs was initially set at $850,000, and beginning in July 2008, the
maximum amount has increased with inflation.
Present constitution provides that effective April 1, 2012, if the last official forecast of
revenues adopted for a fiscal year before the start of that fiscal year contains an estimate of
severance tax revenues from natural resources other than sulphur, lignite, or timber that
exceeds the FY 2008-2009 actual severance tax revenues from such natural resources, then
the maximum amount of severance tax collected and remitted to local governing authorities
shall increase to $1.85 million in the first year and in all subsequent fiscal years is $2.85
million. In July of every year the maximum amount remitted to the parish shall increase in
accordance with inflation.
Proposed constitutional amendment retains the 1/5 allocation of severance tax to be remitted
to parish governing authorities in the present constitution.
Proposed constitutional amendment authorizes the legislature to increase this amount by law.
Proposed constitutional amendment removes the maximum amount of severance tax
collections to be remitted to parish governing authorities.
Present constitution further provides that in the event the maximum increases under these
provisions, at least 50% of the excess severance tax remitted to a parish be used only within
the parish for the same purposes as money received from the Parish Transportation Fund.
Present constitution also provides that after the allocations of severance tax to the Bond
Security and Redemption Fund, to the parish, to the Conservation Fund and to the Coastal
Protection and Restoration Fund have been satisfied, an amount equal to 50% of the
revenues collected within the Atchafalaya Basin, not to exceed $10 million, is to be
deposited into the Atchafalaya Basin Conservation Fund. The money in the fund shall be
used exclusively to fund projects contained in the state or federal basin master plans or an
annual basin plan or to provide match for the Atchafalaya Basin Floodway System,
Louisiana Project.
Proposed constitutional amendment repeals present constitution.
Page 3 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-140 ORIGINAL
HB NO. 444
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2020.
(Amends Const. Art. VII, §4(D)(3); Repeals Const. Art. VII, §4(D)(4))
Page 4 of 4
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.