House Bill No. by Representative Geymann amends the severance tax rates on oil in Louisiana, specifically targeting oil produced from wells completed before and after July 1, 2025. The bill establishes a tax rate of twelve and one-half percent for oil from wells completed before this date, while reducing the rate to six and one-half percent for oil from wells completed on or after July 1, 2025. Additionally, it introduces a reduced tax rate of six and one-fourth percent for oil produced from wells classified as incapable of producing more than twenty-five barrels per day and at least fifty percent salt water, provided these wells are certified by the Department of Revenue.

The bill also outlines tax rates for oil produced from stripper wells, which are defined as those producing an average of ten barrels or less per day, setting the tax rate at three and one hundred twenty-five thousandths percent. Furthermore, it specifies tax implications for oil production from wells that have been inactive for two or more years or designated as orphan wells, establishing a severance tax rate of six and one-fourth percent for such cases. 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)