HLS 25RS-13 ORIGINAL
2025 Regular Session
HOUSE BILL NO. 294
BY REPRESENTATIVE BAGLEY
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
TAX/SEVERANCE TAX: (Constitutional Amendment) Provides relative to severance tax
revenues remitted to parishes in which the associated severance occurs
1 A JOINT RESOLUTION
2Proposing to amend Article VII, Section 4(D)(3) of the Constitution of Louisiana and to
3 repeal Article VII, Section 4(D)(4) of the Constitution of Louisiana, relative to state
4 severance tax revenues; to repeal limits on amounts of severance tax revenues
5 remitted to parishes; to repeal requirements associated with certain severance tax
6 revenue amounts remitted to parishes; to provide for submission of the proposed
7 amendment to the electors; to provide an effective date; and to provide for related
8 matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10elected to each house concurring, that there shall be submitted to the electors of the state of
11Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12amend Article VII, Section 4(D)(3) of the Constitution of Louisiana, to read as follows:
13 §4. Income Tax; Severance Tax; Political Subdivisions
14 Section 4.
15 * * *
16 D.
17 * * *
18 (3) Effective July 1, 2007 2027, one-fifth of the severance tax on all natural
19 resources other than sulphur, lignite, or timber shall be remitted to the governing
20 authority of the parish in which severance or production occurs. The initial
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HB NO. 294
1 maximum amount remitted to the parish in which severance or production occurs
2 shall not exceed eight hundred fifty thousand dollars. The maximum amount remitted
3 shall be increased each July first, beginning in 2008, by an amount equal to the
4 average annual increase in the Consumer Price Index for all urban consumers, as
5 published by the United States Department of Labor, for the previous calendar year,
6 as calculated and adopted by the Revenue Estimating Conference.
7 * * *
8 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
9elected to each house concurring, that there shall be submitted to the electors of the state of
10Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
11Article VII, Section 4(D)(4) of the Constitution of Louisiana.
12 Section 3. Be it further resolved that the provisions of the amendment contained in
13this Joint Resolution shall become effective July 1, 2027.
14 Section 4. Be it further resolved that this proposed amendment shall be submitted
15to the electors of the state of Louisiana at the statewide election to be held on November 3,
162026.
17 Section 5. Be it further resolved that on the official ballot to be used at the election,
18there shall be printed a proposition, upon which the electors of the state shall be permitted
19to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
20follows:
21 Do you support an amendment to repeal limits on the dollar amount of state
22 severance tax revenues paid to the parishes where the severance or
23 production of natural resources occurs, thereby allowing parishes to keep a
24 percentage of those revenues regardless of the dollar amount? (Effective
25 July 1, 2027) (Amends Article VII, Section 4(D)(3); Repeals Article VII,
26 Section 4(D)(4))
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HB NO. 294
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 294 Original 2025 Regular Session Bagley
Abstract: Repeals a limit on the dollar amount of state severance tax revenues to be
remitted to parishes where severance of the resources subject to tax 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, effective July 1, 2007, the maximum annual
amount of severance tax revenue to be remitted to any parish was $850,000; and requires
that the $850,000 limit be adjusted for inflation each July first, beginning in 2008, by an
amount equal to the average annual increase in the Consumer Price Index.
Proposed constitutional amendment amends present constitution to repeal the dollar-amount
limit on severance tax revenues to be remitted to parishes. Proposed constitutional
amendment thereby requires that 20% of all severance tax revenues on the natural resources
specified in present constitution, regardless of the dollar amount, be remitted to the
governing authority of the parish in which severance or production occurs.
Proposed constitutional amendment repeals provisions of present constitution rendered
without effect by the repeal of the dollar-amount limit on severance tax revenues to be
remitted to parishes.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2026.
Effective July 1, 2027.
(Amends Const. Art. VII, §4(D)(3); Repeals Const. Art. VII, §4(D)(4))
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