LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: HB 75 HLS 202ES 163
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: October 23, 2020 10:56 AM Author: MCFARLAND
Dept./Agy.: Agriculture and Forestry
Subject: Timber Severance Tax to Wildfire Suppression Subfund Analyst: Patrice Thomas
AGRICULTURE/FOREST COMR EN SEE FISC NOTE See Note Page 1 of 1
Provides relative to the disposition of timber severance taxes (Item #34)
Present law dedicates 75% of timber severance to the parishes of severance and 25% to the state. Of the state portion,
75% is deposited into the Forestry Productivity Fund. Proposed law creates the Wildfire Suppression Subfund within the
existing Forest Protection Fund. Beginning in FY 21, proposed law requires the remaining 25% of the state portion of the
severance tax on timber to be deposited into Wildfire Suppression Subfund. Proposed law requires the LA Department of
Agriculture and Forestry (DAF) to utilize funds in the Wildfire Suppression Subfund on the appointment and retention of
forest firefighters. While unexpended or unencumbered monies in the Forest Protection Fund are reverted to the LA
Agricultural Finance Authority, proposed law provides any unexpended or unencumbered monies at the end of the fiscal year
remain in the subfund; and prohibits appropriations out of Forest Protection Fund and Wildfire Suppression Subfund from
displacing, replacing, or supplanting state general fund within LDAF unless the total appropriations for the fiscal year exceed
general fund appropriations for the previous year.
EXPENDITURES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
REVENUES 2020-21 2021-22 2022-23 2023-24 2024-25 5 -YEAR TOTAL
State Gen. Fd. ($875,000) ($875,000) ($875,000) ($875,000) ($875,000) ($4,375,000)
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $875,000 $875,000 $875,000 $875,000 $875,000 $4,375,000
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
EXPENDITURE EXPLANATION
Proposed law increases expenditures from the newly created statutorily dedicated Wildfire Suppression Subfund within the
Forest Protection Fund in the Department of Agriculture and Forestry (DAF). Proposed law reallocates a portion of the 25%
of the timber severance tax retained by the State from being deposited into the State General Fund and directs it into the
Wildfire Suppression Subfund (see REVENUE EXPLANATION below). Proposed law requires the Wildfire Suppression Subfund
to be used to hire and retain forest firefighters. DAF has indicated the funding will be used fund 17 Forestry Crew Specialist
1 positions with an average salary and related benefits of $50,128.
REVENUE EXPLANATION
There is no anticipated direct material effect on net governmental revenues as a result of this measure, but $875,000
currently deposited into the state general fund will instead be deposited into statutory dedications. Proposed law does not
change severance tax levied on timber, but reallocates the severance tax revenue. Present law dedicates 75% of timber
severance to the parishes of severance and 25% to the state. Of the state portion, 75% is deposited into the Forestry
Productivity Fund. Proposed law dedicates the remaining 25% of the state share of timber severance into the newly created
the Wildfire Suppression Subfund within the Forestry Productivity Fund instead of the state general fund.
The average timber severance tax collected is approximately $14 M ($10.5 M - 75% to parishes and $3.5 M - 25% to the
State). Of the 25% timber severance tax retained by the State, 75% is allocated to the Forestry Productivity Fund ($3.5 M x
75% = $2,625,000 M). The remaining 25% is deposited into State General Fund ($3.5 M x 25% = $875,000). This
measure allocates the remaining 25%, or $875,000, into the Wildfire Suppression Subfund beginning in FY 21.
Note: The current official state revenue forecast includes $2.5 M allocated to the Forestry Productivity Fund.
Senate Dual Referral Rules House
x 13.5.1 >= $100,000 Annual Fiscal Cost {S & H} x 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Alan M. Boxberger
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Staff Director


Statutes affected:
HB75 Original: 3:4321(C)
HB75 Engrossed: 3:4321(C)
HB75 Enrolled: 3:4321(C)
HB75 Act 25: 3:4321(C)