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 489 Original 2020 Regular Session Bagley
Abstract: Provides that severance taxes are remitted and allocated to parish governing authorities
in accordance with the constitution.
Present law provides that 1/3 of the severance tax not to exceed $100,000 on sulphur, 1/5 of the
severance tax not to exceed $500,000 on all natural resources other than sulphur or timber, and 3/4
of the severance tax on timber collected are allocated to the parish governing authority in which the
production or severance of the natural resource occurs. Proposed law repeals present law.
Present law authorizes the treasurer to remit and allocate severance taxes to parish governing
authorities. Proposed law retains present law.
Present law provides that when the amount of severance tax to be remitted to the parish governing
authority has reached the maximum amount authorized in the constitution, there shall be no further
allocation. Proposed law retains present law.
Present law provides that all additional collections that surpass the limit provided for in the
constitution shall be credited to the state treasury except for the statutory exceptions related to
oilfield site trust accounts for orphaned wells. Proposed law retains present law.
Present law provides that the disposition of severance tax collections be remitted and allocated in
accordance with Art. VII, ยง4 of the Constitution of La. Proposed law retains present law.
(Amends R.S. 47:645(B))