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 600 Original 2025 Regular Session Geymann
Abstract: Reduces the rate of severance tax on oil produced from wells completed after June 30,
2025, and provides for special rates on oil produced from incapable wells, stripper wells,
inactive wells, and orphan wells.
Present law provides for the levy of a tax, known as severance tax, on natural resources severed from
the soil or water. Provides that the rate of severance tax is predicated on the quantity or value of the
products or resources severed. Establishes severance tax rates on resources subject to the tax.
Present law provides that the severance tax on oil is 12.5% of its value at the time and place of
severance.
Proposed law reduces the severance tax for newly produced oil by establishing a severance tax rate
of 6.5% on oil produced from wells completed on or after July 1, 2025.
Present law establishes special severance tax rates for oil produced from wells designated as
incapable wells, stripper wells, inactive wells, and orphan wells pursuant to present law.
Proposed law changes the special rate on oil produced from incapable wells from one-half of the
regular rate provided for in present law and proposed law to 6.25%.
Proposed law changes the special rate on oil produced from stripper wells from one-fourth of the
regular rate provided for in present law and proposed law to 3.125%.
Proposed law changes the special rate on oil produced from inactive wells from one-half or one-
quarter of the regular rate provided for in present law and proposed law, depending on when the oil
was produced, to 6.25% or 3.125%, depending on when the oil was produced.
Proposed law changes the special rate on oil produced from orphan wells from one-fourth or one-
eighth of the regular rate provided for in present law and proposed law, depending on when the oil
was produced, to 3.125% or 1.565%, depending on when the oil was produced.
Proposed law applies to taxable periods beginning on or after July 1, 2025.
Effective July 1, 2025.
(Amends R.S. 47:633(7)(a), (b), and (c)(i)(aa), (ii)(aa), and (iv)(aa) and (bb))