House Bill No. 294 proposes a constitutional amendment to modify the distribution of severance tax revenues in Louisiana. Specifically, it seeks to amend Article VII, Section 4(D)(3) of the Louisiana Constitution to remove the existing limit on the dollar amount of severance tax revenues that can be remitted to parishes where the severance or production of natural resources occurs. Currently, 20% of the severance tax on natural resources, excluding sulphur, lignite, or timber, is allocated to these parishes, but the maximum amount remitted is capped at $850,000, which is subject to annual inflation adjustments. The proposed amendment would eliminate this cap, allowing parishes to receive a percentage of severance tax revenues without a maximum limit.

Additionally, the bill includes a provision to repeal Article VII, Section 4(D)(4) of the Constitution, which is rendered unnecessary by the removal of the dollar-amount limit. If approved by voters in a statewide election scheduled for November 3, 2026, the changes would take effect on July 1, 2027. The amendment aims to provide parishes with a more equitable share of severance tax revenues, thereby enhancing their financial resources for local governance and development.