Louisiana 2015 Regular Session

Louisiana Senate Bill SB89

Introduced
4/1/15  
Refer
4/1/15  
Refer
4/13/15  

Caption

Removes the refundable tax credit for ad valorem property taxes paid on natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (gov sig)

Impact

The removal of the credit is expected to impact the operations of natural gas storage service providers significantly. By eliminating this tax benefit, the financial burden on these entities could increase, potentially leading to higher operational costs. This shift could have broader implications for the energy sector in Louisiana, specifically regarding pricing competitiveness and investment in storage facilities within the state.

Summary

Senate Bill 89, introduced by Senator Adley, aims to amend Louisiana tax law concerning ad valorem property taxes related to natural gas. The bill specifically proposes to eliminate the refundable tax credit for such taxes paid on natural gas held, used, or consumed in providing storage services. This change is scheduled to be effective for all tax years beginning on or after January 1, 2015. The bill retains existing tax credits for manufacturers, distributors, and retailers, indicating a targeted approach towards the natural gas industry in Louisiana.

Sentiment

The sentiment surrounding SB 89 appears to be mixed, reflecting broader concerns about taxation and its impact on the natural gas industry. Supporters of the bill may view it as a necessary step towards revenue generation for the state, while opponents likely express concern about the increased financial constraints imposed on the natural gas sector. This division highlights the ongoing tension between fiscal policy objectives and the need to maintain a competitive landscape for energy providers.

Contention

Key points of contention surrounding SB 89 focus on its potential economic impact on the natural gas industry and the broader implications for energy pricing in Louisiana. Critics argue that the removal of the tax credit could discourage investment in natural gas infrastructure and lead to higher costs for consumers. Proponents might argue that the state needs to prioritize revenue from taxation over subsidies, suggesting that such measures could ultimately benefit state resources, despite the potential short-term costs to energy producers.

Companion Bills

No companion bills found.

Previously Filed As

LA SB141

Constitutional amendment to phase-in over a four-year period an exemption from ad valorem property taxes for inventory held by manufacturers, distributors, and retailers, and natural gas held, used, or consumed in providing natural gas storage services or operating natural gas storage facilities. (2/3 - CA13s1(A)) (1/1/16)

LA HB328

(Constitutional Amendment) Adds ad valorem property tax exemptions for certain inventory held by manufacturers, distributors, and retailers and natural gas used in providing natural gas storage services or operating natural gas storage facilities

LA SB32

Provides for the sunset of the tax credit for ad valorem taxes paid on natural gas. (gov sig) (OR +$4,800,000 GF RV See Note)

LA HB814

Provides for the carry forward rather than the refund of the tax credit for ad valorem taxes paid for certain natural gas

LA HB432

Provides for the carryforward rather than the refund of the tax credit for ad valorem taxes paid for certain natural gas

LA HB230

Repeals the refundable income and corporation franchise tax credit for ad valorem property taxes paid to local governments on inventory

LA HB522

(Constitutional Amendment) Exempts certain natural gas stores from ad valorem property taxes

LA SB126

Repeals tax credits for local inventory taxes paid. (gov sig)

LA SB271

Provides for equivalency of the special fuels tax with the gasoline tax on motor vehicles that operate on the highways using liquefied natural gas, liquefied petroleum gas, or compressed natural gas. (7/1/15) (EN +$6,000,000 SD RV See Note)

LA SB57

Natural gas storage: moratorium.

Similar Bills

No similar bills found.