HLS 20RS-889 ORIGINAL
2020 Regular Session
HOUSE BILL NO. 489
BY REPRESENTATIVE BAGLEY
TAX/SEVERANCE TAX: To provide for the disposition of severance tax collections
1 AN ACT
2To amend and reenact R.S. 47:645(B), relative to the disposition of certain severance tax
3 collections; to provide for the amount of certain severance tax collections to be
4 remitted and allocated to parish governing authorities; to provide for effectiveness;
5 and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:645(B) is hereby amended and reenacted to read as follows:
8 §645. Disposition of collections
9 * * *
10 B. One-third of the sulphur severance tax but not to exceed one hundred
11 thousand dollars, one-fifth of the severance tax on all natural resources other than
12 sulphur or timber but not to exceed five hundred thousand dollars, and three-fourths
13 of the timber severance tax shall be allocated to the governing authority of the parish
14 within which severance or production occurs and shall be credited to such parish by
15 the treasurer for allocation to the governing authority of the parish in which
16 severance or production occurs as provided in Article VII, Section 4 of the
17 Constitution of 1974. The severance tax for sulphur, lignite, timber, and natural
18 resources other than sulphur, lignite, or timber shall be remitted and allocated to the
19 governing authority of the parish within which severance or production of the natural
20 resource occurs by the treasurer in accordance with Article VII, Section 4 of the
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 20RS-889 ORIGINAL
HB NO. 489
1 Constitution of Louisiana. When these limits the limits provided in Article VII,
2 Section 4 of the Constitution of Louisiana have been reached, there shall be no
3 further allocation, and all additional collections for the year shall be credited in full
4 to the state treasury except as provided in R.S. 30:88.1.
5 * * *
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, §4 of the Constitution of La. Proposed law retains
present law.
(Amends R.S. 47:645(B))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.