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 280 Engrossed 2023 Regular Session Bagley
Abstract: Establishes a threshold for "excess severance tax" remitted to parishes and requires
parishes to use excess severance tax revenues for economic development activities and
infrastructure projects.
Present constitution authorizes the state to levy severance taxes on natural resources severed from
the soil or water, to be paid proportionately by the owners of those resources at the time of severance.
Provides that a certain portion of the severance tax on natural resources other than sulphur, lignite,
or timber shall be remitted to the governing authority of the parish in which severance or production
occurs.
Proposed law provides that of the total amount of severance tax revenue remitted in a fiscal year to
a parish pursuant to present constitution, any portion which is in excess of the amount of such
revenue remitted to that parish in Fiscal Year 2022-2023 shall be deemed "excess severance tax".
Requires that excess severance tax be used as follows:
(1)50%, collectively, for either or both of the following:
(a)A regional economic development organization as defined in present law (R.S.
39:1482).
(b)Qualified expenditures, as defined in present law (R.S. 39:1482), related to the
furtherance of economic development within the parish.
(2)50% for transportation infrastructure, water system infrastructure, sewer system
infrastructure, other infrastructure projects or programs, or any combination of these.
Effective if and when the proposed amendment of Article VII of the Constitution of La. contained
in the Act which originated as House Bill No. 277 of this 2023 R.S. is adopted at a statewide election
and becomes effective.
(Amends R.S. 47:645(B); Adds R.S. 47:645(D))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill: 1. Identify by bill number the proposed constitutional amendment on which the
effectiveness of proposed law is contingent.