This bill amends the severance tax rates on oil in Louisiana, specifically targeting oil produced from wells completed before and after July 1, 2025. For oil produced from wells completed before this date, the tax rate is set at twelve and one-half percent of its value at the time and place of severance. In contrast, oil from wells completed on or after July 1, 2025, will be taxed at a reduced rate of six and one-half percent. Additionally, the bill introduces provisions for oil produced from wells classified as incapable of producing a certain amount of oil per day, establishing lower tax rates for these wells based on their production capabilities.

The bill also outlines specific tax rates for oil produced from stripper wells and wells classified as mining and horizontal drilling projects, with rates set at three and one hundred twenty-five thousandths percent of their value at the time and place of severance. Furthermore, it addresses the tax implications for production from inactive wells and orphan wells, establishing a framework for reduced tax rates based on the duration of inactivity and the classification of the well. The provisions of this Act will apply to taxable periods beginning on or after July 1, 2025, and will take effect contingent upon the enactment of related legislation.

Statutes affected:
HB600 Original: 47:633(7)
HB600 Engrossed: 47:633(7)
HB600 Enrolled: 47:633(7)
HB600 Act 295: 47:633(7)