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 277 Reengrossed 2023 Regular Session Bagley
Abstract: Increases the limit on state severance tax revenue remitted to parishes in which the
severance generating the revenue occurs.
Present constitution requires that 20% of the state severance tax on natural resources other than
sulphur, lignite, or timber be remitted to the governing authority of the parish in which severance or
production occurs. Provides that the maximum annual amount of severance tax revenue remitted
to a parish was $850,000 effective July 1, 2007, and that this amount shall be adjusted for inflation
each July first, beginning in 2008, by an amount equal to the average annual increase in the
Consumer Price Index (CPI). The inflation-adjusted maximum amount to be remitted to parishes
equals $1,146,603 in Fiscal Year (FY) 2022-2023.
Proposed constitutional amendment amends present constitution to provide instead that, effective
July 1, 2024, the maximum annual amount of state severance tax revenue remitted to a parish in
which severance or production occurs shall be $10,000,000 and that this amount is static and not to
be adjusted according to the CPI or any other index or factor.
Proposed constitutional amendment authorizes the legislature to enact laws providing for the use by
parishes of amounts remitted pursuant to proposed constitutional amendment.
Present constitution provides for increasing state severance tax revenue amounts remitted to parishes
if certain conditions are met. Provides for a schedule of increases to be implemented if and when
the official forecast of severance tax revenues for a fiscal year exceeds actual severance tax
collections from Fiscal Year 2008-2009. Provides further for the expenditure by parishes of certain
amounts remitted in accordance with this schedule. Proposed constitutional amendment repeals
present constitution.
Present constitution creates the Atchafalaya Basin Conservation Fund (fund) and authorizes specific
uses of monies in the fund. Provides that after the allocation of severance tax revenues required by
present constitution, as amended by proposed constitutional amendment, 50% of the revenues
received from severance taxes and royalties on state lands in the Atchafalaya Basin, not to exceed
$10,000,000 each fiscal year, shall be deposited into the fund. Proposed constitutional amendment
retains present constitution.
Present constitution provides that provisions pertaining to the fund are implemented when certain
conditions are met. Proposed constitutional amendment repeals present constitution.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Oct. 14, 2023.
Effective July 1, 2024.
(Amends Const. Art. VII, ยง4(D)(3) and (4))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and Procedure to the
engrossed bill:
1. Change ballot language.