Louisiana Senate Bill SB110

Louisiana 2013 Regular Session

• Introduced: 4/8/13
• Refer: 4/8/13

Caption

Exempts persons who transport non-hazardous oilfield waste from license tax of 2% on gross receipts of intrastate business. (8/1/13)

Impact

The implementation of SB 110 is expected to have significant implications on state law, specifically regarding the regulations governing public utilities and their taxation. By removing the gross receipts tax for oilfield waste transportation, the legislation aims to support this specialized industry, which is vital for the management of waste resulting from oil extraction activities. It is likely to attract more businesses into the oilfield waste transport sector, potentially leading to increased competition and improved services in waste management.

Summary

Senate Bill 110 seeks to exempt individuals or entities engaged in the transportation of non-hazardous oilfield waste from a 2% gross receipts tax imposed on public utilities doing intrastate business. The bill amends existing legislation to redefine what constitutes a 'motor freight line', specifically excluding those who transport non-hazardous oilfield waste. This measure is designed to alleviate the financial burden on transporters in this sector, allowing them to operate more cost-effectively within the state.

Sentiment

The sentiment surrounding SB 110 appears to be favorable among those in the oil and gas industry, as it offers economic relief and support for transporters affected by the tax. Proponents argue that this exemption will encourage business growth and improve operational efficiency in waste handling. However, there may also be criticisms regarding tax revenue loss for the state and the precedent it sets for sector-specific tax exemptions, indicating a potential divide in opinions about fiscal responsibility versus industry support.

Contention

Notable points of contention regarding SB 110 revolve around the balance between encouraging industry growth and maintaining adequate state revenue through taxation. While supporters emphasize the need for tax relief for essential services like oilfield waste transportation, skeptics may raise concerns about the long-term implications of such exemptions, including how they affect the overall state budget and related public services. The bill's passage may incite further discussions on the adequacy of regulations surrounding waste transportation and the responsibilities of businesses in managing non-hazardous waste.