Imposes a tax on all oil and gas that runs through pipelines located in the state
Impact
By permitting the imposition of this transportation tax, HB 67 modifies existing laws that previously prohibited local governments from levying additional taxes on natural gas. It facilitates a shift in how Louisiana can generate revenue from its significant natural gas industry. It also implies that while the tax does not apply to the production or ownership of natural gas, it does impose new fiscal responsibilities on gas transporters, promoting a structure where transporters share the cost burden with the state.
Summary
House Bill 67 introduces a tax on the transportation of natural gas through pipelines in Louisiana, specifically targeting the use of facilities exceeding one mile in length. The tax is set at fifty cents per thousand cubic feet of natural gas transported. The funds collected from this tax are to be deposited into the Fair Share Fund established in the state constitution, addressing the need for a fair revenue source to mitigate the environmental and infrastructural impacts caused by natural gas transportation. This legislative move aims to ensure that those benefiting from the state's natural resources contribute to the costs incurred by the state.
Sentiment
The sentiment surrounding the bill appears to be mixed. Proponents view the tax as a necessary step towards ensuring that oil and gas companies contribute fairly to the state, especially in light of the environmental degradation that has occurred over the years. Conversely, some stakeholders argue that additional taxes may represent an undue financial burden on businesses engaged in energy transportation, potentially leading to higher operational costs that could be passed on to consumers.
Contention
There are notable points of contention related to the bill, particularly surrounding the potential impact on the local economy and the energy sector. Critics raise concerns about how the new tax might affect the competitiveness of Louisiana's natural gas industry and whether the revenue will be used effectively to address the environmental issues exacerbated by gas transportation. The implementation of this tax could spark further debates on resource management and the balance between economic growth and environmental stewardship.
Levies a tax on the transportation of natural gas through pipelines in La. and provides for the disposition of the revenues (OR INCREASE SD RV See Note)
To establish a framework upon which to repeal the property tax on business inventories and offshore vessels as well as the state income tax credits associated therewith through the repeal of a state sales and use tax, the levy of a limited, temporary state sales and use tax, and limitations on the applicability of certain exclusions and exemptions from certain state sales and use taxes (Items #31 and 36) (OR SEE FISC NOTE GF RV)
Dedicates the avails of the existing one percent state sales and use tax to the Stability in Higher Education Fund and provides with respect to the extent of that tax base for purposes of monies available for deposit into the fund (Items #7 and 36) (EG SEE FISC NOTE GF RV See Note)
(Constitutional Amendment) Removes the prohibition related to the imposition of an additional tax or license on gas, authorizes the levy of a tax, fee, permit, or license on natural gas transported in Louisiana, and creates the Fair Share Fund
Provides for the extent of applicability of various exclusions and exemptions from state sales and use tax (Item #36) (EG +$789,900,000 GF RV See Note)
Appropriates funds for payment of the consent judgments against the state in the consolidated actions entitled Canella et al. v Oliver et al. consolidated with Troy V. Canella v Oliver et al.
Requests the La. Dept. of Transportation and Development to study the need for the creation of local transportation districts in order to assist the department in addressing the state's transportation needs
Urges and requests the House Committee on Municipal, Parochial and Cultural Affairs and the Senate Committee on Local and Municipal Affairs to act as a joint committee to assess the need for the creation of a state housing plan and the creation of a council on transportation and housing development