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 278 Engrossed 2023 Regular Session McFarland
Abstract: Increases amounts of state severance tax revenues remitted to parishes, repeals a
previously adopted trigger for increasing these amounts which has never been implemented,
requires that parishes expend portions of these amounts in a manner consistent with
expenditure of monies they receive from the Parish Transportation Fund, and implements
provisions of the current constitution for the use of certain severance tax revenues for
Atchafalaya Basin conservation projects.
Present constitution provides that, effective July 1, 2007, 20% 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. Provides that the initial maximum amount remitted
to a parish shall not exceed $850,000; provides that, beginning in 2008, this figure shall be adjusted
annually for inflation, on July 1 of each year, according to the average annual increase in the
Consumer Price Index (CPI). The inflation-adjusted maximum amount to be remitted to parishes
is $1,146,603 in Fiscal Year (FY) 2022-2023.
Present constitution would further increase the maximum amount to be remitted to parishes 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 derived from natural resources other than sulphur, lignite, or
timber in an amount which exceeds the actual severance tax revenues from those resources collected
in FY 2008-2009. Provides that such increases in the maximum amount to be remitted to parishes,
if triggered, would be as follows:
(1)From the inflation-adjusted $850,000 figure ($1,146,603 currently) to $1,850,000 in the first
fiscal year after collections exceed the FY 2008-2009 level.
(2)To $2,850,000 in all subsequent fiscal years.
Present constitution provides that the term "excess severance tax", for purposes of present
constitution, shall mean the amount of severance tax revenue remitted to a parish in excess of the
amount remitted in FY 2011-2012. Requires that at least 50% of the excess severance tax remitted
to a parish in a fiscal year be used within the parish in the same manner, and for the same purposes,
as monies that the parish receives from the Parish Transportation Fund.
Proposed constitutional amendment repeals the trigger for increasing the maximum amount of
severance tax revenue to be remitted to parishes based on a current-year estimate of severance tax
collections exceeding FY 2008-2009 collections. Proposed constitutional amendment provides that, effective July 1, 2024, the amount of severance
tax revenue from all natural resources other than sulphur, lignite, or timber to be remitted to the
respective parishes where the severance or production occurs shall be the lesser of the following:
(1)The total severance tax on all natural resources other than sulphur, lignite, or timber
attributable to severance or production within the parish.
(2)$2,850,000.
Proposed constitutional amendment provides that on July 1, 2025, and each July 1 thereafter, the
$2,850,000 limit on severance tax revenues to be remitted to parishes shall be adjusted annually for
inflation according to the average annual increase in the CPI.
Proposed constitutional amendment amends present constitution to provide that the term "excess
severance tax", for purposes of present constitution and proposed constitutional amendment, shall
mean the amount of severance tax revenue remitted to a parish in excess of the amount remitted in
FY 2022-2023. Proposed constitutional amendment amends present constitution to require that
100% of the excess severance tax remitted to a parish in a fiscal year be used within the parish in the
same manner, and for the same purposes, as monies that the parish receives from the Parish
Transportation Fund.
Present constitution creates the Atchafalaya Basin Conservation Fund and authorizes specific uses
of monies in the fund. Provides, however, that implementation of the fund is tied to the trigger for
increasing the maximum amount of severance tax revenue to be remitted to parishes which proposed
constitutional amendment repeals. Present constitution 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.
Provides for submission of the proposed amendment to the voters at the statewide election to be held
Oct. 14, 2023.
(Amends Const. Art. VII, ยง4(D))