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 21 Original 2024 Third Extraordinary Session Bourriaque
Abstract: Requires the secretary of the Dept. of Revenue to annually estimate the revenue derived
from state taxes collected on aviation fuel and to enter into a two-year agreement with the
secretary of the Dept. of Transportation and Development.
Proposed law requires the secretary of the Dept. of Revenue (DOR) to annually estimate the revenue
derived from state taxes collected on sales of aviation fuel. Further requires the calculation of
"annual estimated revenue" to be determined by using all of the following:
(1)The average price per gallon of aviation fuel determined through a two-year agreement
between the secretary of DOR and the secretary of the Dept. of Transportation and
Development (DOTD). The average price per gallon shall be based on historical data,
current market fuel prices, and trends provided by relevant reports, reputable sources, or
market analysis firms.
(2)The volume of aviation fuel sold in La. based on data provided by the Energy Information
Administration or the Bureau of Transportation Statistics. If data from either of these two
organizations is unavailable, the secretary of DOR may utilize other reputable data sources.
(3)The sales tax rate based on the state sales tax rate in effect at the time of the estimate. If the
state sales tax rate changes, the revenue estimate shall be recalculated using the new sales
tax rate.
Proposed law requires the secretary of DOTD to submit the annual estimated revenue of state taxes
derived from purchases of aviation fuel to the Revenue Estimating Conference within five calendar
days of the annual estimate being completed by the secretary.
Proposed law requires secretary of DOR to annually submit a report to JLCB no later than March
31st of each year which contains the average price per gallon used in the revenue calculation, the
total gallons of aviation fuel sold in La., and the sales tax rate applied in the calculation.
Proposed law requires JLCB to review and approve the following:
(1)All agreements between the secretaries of DOR and DOTD related to the calculation of
aviation fuel tax revenue prior to the agreement becoming binding between the parties.
(2)Other reputable data sources the secretary of DOR may use when calculating the volume of aviation fuel sold in La. if data from the Energy Information Administration or the Bureau
of Transportation Statistics is unavailable.
Proposed law requires monies collected from the avails of the taxes levied on aviation fuel to be used
by DOTD solely for airport-related purposes.
Proposed law terminates on Jan. 1, 2027.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Adds R.S. 47:306.6)