Imposes a tax on all oil and gas that runs through pipelines located in the state
Impact
If enacted, HB 60 would fundamentally alter the financial landscape for natural gas transportation within Louisiana. The bill represents a departure from existing laws that prohibited additional taxes based on the transportation of oil and gas. By permitting this new tax, the legislation could provide local and state revenue streams that are crucial for addressing infrastructure and environmental concerns related to gas transportation. Furthermore, it positions Louisiana to receive complicated compensation for the impact that pipeline infrastructures have on its economy and environment.
Summary
House Bill 60 is a proposed piece of legislation that aims to levy a tax on the transportation of natural gas through pipelines in Louisiana. Specifically, the bill imposes a tax of 50 cents for every 1,000 cubic feet of natural gas transported via a pipeline exceeding one mile in length. The proceeds from this tax are intended to go into the Fair Share Fund, which is established under the Louisiana Constitution. This legislation seeks to rectify perceived injustices regarding the distribution of the costs and benefits associated with natural gas transportation, arguing that Louisiana has borne an unfair burden relative to its role in the energy sector.
Sentiment
The response to House Bill 60 has been mixed among stakeholders. Proponents argue that the tax will create much-needed revenue to support state infrastructure and address the environmental impacts of natural gas transportation, which they view as a fair exchange for the benefits provided to other states. However, detractors may see the bill as an additional financial burden on the natural gas industry, potentially affecting delivery costs and market competitiveness. The sentiment is thus split, reflecting a broader debate about resource equity and environmental responsibilities.
Contention
Among the notable points of contention are concerns regarding the potential for increased operational costs for natural gas companies operating in Louisiana. Critics of the bill worry that this new tax could lead to increased prices for consumers and might discourage investment in the state's energy sector. Additionally, discussions may extend to the implications of the Fair Share Fund's deployment and oversight, raising questions about transparency and the intended use of the collected tax revenues.
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)
(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
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)
Authorizes the commissioner of conservation of the Louisiana Department of Natural Resources to enforce the La. Underground Utilities and Facilities Damage Prevention (OneCall) law as it applies to pipelines (EN INCREASE SD EX See Note)
Dedicates the avails of the existing one percent state sales and use tax for the support of public elementary through post-secondary education (EG +$231,000,000 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
Repeals the state sales and use tax exclusion for manufacturing machinery and equipment and the exemption for business utilities and provides a refund of the state sales and use tax collected on certain manufacturing machinery and equipment and industrial utilities (OR INCREASE 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