SLS 20RS-459 ORIGINAL
2020 Regular Session
SENATE BILL NO. 141
BY SENATOR WARD
TAX/TAXATION. Constitutional amendment to reallocate severance tax to parishes for
Parish Transportation Funds. (2/3 - CA13s1(A))
1 A JOINT RESOLUTION
2 Proposing to amend Article VII, Section 4(D)(1), the introductory paragraph of (D)(4), and
3 (D)(4)(a) of the Constitution of Louisiana, relative to the allocation of severance tax
4 to parishes; to reallocate severance tax to the parishes; to provide relative to the use
5 of a portion of the severance tax allocation for transportation projects; and to specify
6 an election for submission of the proposition to electors and provide a ballot
7 proposition.
8 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
9 elected to each house concurring, that there shall be submitted to the electors of the state, for
10 their approval or rejection in the manner provided by law, a proposal to amend Article VII,
11 Section 4(D)(1), the introductory paragraph of (D)(4), and (D)(4)(a) of the Constitution of
12 Louisiana, to read as follows:
13 §4. Income Tax; Severance Tax; Political Subdivisions
14 * * *
15 (D)(1) Severance Tax Allocation.
16 (1) One-third of the sulphur severance tax, but not to exceed one hundred
17 thousand dollars; one-third of the lignite severance tax, but not to exceed one
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SLS 20RS-459 ORIGINAL
1 hundred thousand dollars; one-fifth of the severance tax on all natural resources,
2 other than sulphur, lignite, or timber, but not to exceed five hundred thousand
3 dollars; and three-fourths of the timber severance tax shall be remitted to the
4 governing authority of the parish in which severance or production occurs.
5 * * *
6 (4) Effective April 1, 2012 the provisions of this Subparagraph shall be
7 implemented if and when the last official forecast of revenues adopted for a fiscal
8 year before the start of that fiscal year contains an estimate of severance tax revenues
9 derived from natural resources other than sulphur, lignite, or timber in an amount
10 which exceeds the actual severance tax revenues from such natural resources
11 collected in Fiscal Year 2008-2009. Upon the adoption of such official forecast, the
12 Revenue Estimating Conference shall certify that the requirements for the
13 implementation of the provisions contained in this Subparagraph have been met. In
14 such event, the following distributions and allocations of severance tax revenues and
15 other revenues provided in this Subparagraph shall be effective and implemented for
16 the fiscal year for which the official forecast was adopted, and each year thereafter.
17 The legislature shall provide by law for the administrative procedures necessary to
18 change the severance tax allocation to parishes from a calendar year basis to a fiscal
19 year basis.
20 (a) Remittance to parishes.
21 (i) In the first fiscal year of implementation of this Subparagraph, Beginning
22 July 1, 2021, the maximum amount of severance tax on all natural resources other
23 than sulphur, lignite, or timber which is remitted to the parish in which severance or
24 production occurs shall not exceed one million eight hundred fifty thousand dollars.
25 For all subsequent fiscal years, the maximum amount remitted to a parish shall not
26 exceed be two million eight hundred fifty thousand dollars.
27 (ii) On Beginning in Fiscal Year 2022-2023, on July first of each year the
28 maximum amount remitted to the parish in which severance or production occurs,
29 as provided in this Subparagraph, shall be increased by an amount equal to the
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1 average annual increase in the Consumer Price Index for all urban consumers for the
2 previous calendar year, as published by the United States Department of Labor,
3 which amount shall be as calculated and adopted by the Revenue Estimating
4 Conference.
5 (iii) Of the total amount of severance tax revenues remitted in a fiscal year
6 to a parish governing authority pursuant to the provisions of this Subparagraph, any
7 portion which is in excess of the amount of such tax revenues remitted to that parish
8 in Fiscal Year 2011-2012 2019-2020 shall be known as "excess severance tax". At
9 least fifty percent of the The excess severance tax received by a parish governing
10 authority in a fiscal year shall be expended within the parish in the same manner and
11 for the same purposes as monies received by the parish from the Parish
12 Transportation Fund.
13 * * *
14 Section 2. Be it further resolved that this proposed amendment shall be submitted
15 to the electors of the state of Louisiana at the statewide election to be held on November 3,
16 2020.
17 Section 3. Be it further resolved that on the official ballot to be used at said election
18 there shall be printed a proposition, upon which the electors of the state shall be permitted
19 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
20 follows:
21 Do you support an amendment to reallocate severance tax revenue to
22 parishes in which the severance or production occurs and to require these
23 parishes to spend any excess severance tax allocation on transportation
24 projects within the parish?
25 (Amends Article VII, Section 4(D)(1), the introductory paragraph of (D)(4),
26 and (D)(4)(a))
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SLS 20RS-459 ORIGINAL
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 141 Original 2020 Regular Session Ward
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 initial maximum amount remitted to the parish in which
severance or production occurs shall not exceed $850,000.
Present constitution provides that the maximum amount remitted shall be increased each
July first by an amount equal to the average annual increase in the Consumer Price Index for
All Urban Consumers, as published by the U.S. Dept. of Labor, for the previous calendar
year, as calculated and adopted by the Revenue Estimating Conference.
Proposed constitutional amendment retains the CPI increase provision.
Present constitution increases the maximum amount of severance tax on natural resources,
other than sulphur, lignite, and timber, that is remitted to the parish governing authority
where the severance occurs from $850,000 to $1,850,000 in the first fiscal year after
collections exceed the collections in FY 2008-09 and to $2,850,000 in all subsequent fiscal
years. Further requires that at least 50% of the excess severance tax remitted to a parish in
a fiscal year be used only within the parish for the same purposes as money received from
the Parish Transportation Fund. The term "excess severance tax" shall mean the amount of
severance tax remitted to a parish in excess of the amount of severance tax remitted to the
parish in FY 2011-12.
Proposed constitutional amendment removes the FY 2008-09 collections trigger and changes
the maximum amount of severance tax on natural resources, other than sulphur, lignite, and
timber, that is remitted to the parish governing authority where the severance occurs from
$850,000 ($1.06 million in FY 2019-20 after CPI adjustment) to $2,850,000 beginning
July 1, 2021. Further requires that 100% of the excess severance tax remitted to a parish in
a fiscal year be used only within the parish for the same purposes as money received from
the Parish Transportation Fund. The term "excess severance tax" shall mean the amount of
severance tax remitted to a parish in excess of the amount of severance tax remitted to the
parish for FY 2019-20.
Specifies submission of the amendment to the voters at the statewide election to be held on
November 3, 2020.
(Amends Art. VII, §4(D)(1), (D)(4)(intro para), and (D)(4)(a))
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