On Tuesday, the Louisiana Supreme Court rejected an attempt to block a constitutional amendment needed to complete the restructuring of the state’s tax laws sought by Gov. Jeff Landry and the Louisiana Legislature. The Court allowed to move forward a statewide vote on a package of changes to the state’s tax laws by dismissing a case challenging how the reforms were presented to voters.
Among other substantive changes, the amendment would remove the cap that limits how much in severance tax revenue local governments can receive from the state for oil, gas and other mineral activity on their lands. The amendment also would require a portion of the money generated from the severance tax on certain types of brine to be paid to parishes.
While folks at the Capitol are focused on the March 29th ballot, Louisiana taxpayers should expect the Legislature to revisit some of the measures that were enacted during last year’s special session in the upcoming fiscal session which starts in April.
Lawmakers are expected to make an attempt to lower severance taxes on oil. Currently, the state’s horizontal well exemption spares much of the natural gas production from taxation; limiting that exemption could allow the Legislature to pay for a lower rate on oil.
Read the full post on Liskow’s Gulf Coast Business Law Blog here.