House Bill No. by Representative Geymann proposes significant amendments to Louisiana's severance tax laws, particularly focusing on the rates, computation, and administration of severance taxes on oil, gas, and other natural resources. The bill updates the title of R.S. 47:633 from "Rates of tax" to "Severance tax; rates; administration" and introduces new provisions for calculating severance tax based on the quantity or value of resources severed. It specifies a tax rate of twelve and one-half percent for oil, determined by either gross receipts or posted field prices, and outlines exemptions and reduced tax rates for oil produced from incapable or stripper wells, as well as provisions for inactive or orphan wells.

Additionally, the bill establishes a structured exemption system for severance taxes based on market prices for oil and natural gas, with exemptions decreasing as prices rise. It introduces new definitions and clarifications regarding the qualifications of accountants verifying well costs and specifies conditions under which the gas severance tax will not accrue. The bill also updates tax rates for various natural resources and empowers the Louisiana Forestry Commission to determine the market value of trees and timber. Overall, the proposed changes aim to streamline the severance tax process while ensuring clarity and accuracy in its administration.

Statutes affected:
HB518 Original: