Louisiana Severance Tax Act (2008)

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The Louisiana Severance Tax Act, or Louisiana Proposed Amendment 4, passed the state legislature as House Bill 420. This measure was a legislatively-referred constitutional amendment.

Election results

Louisiana Severance Tax Act:
Votes Percentage
Yes 704,057 45%
NO 875,196 55%
Total votes 1,579,253 100%

Results according to the Louisiana Secretary of State.[1]

Background

The purpose of the amendment was to increase the sharing of severance taxes to offset the increased traffic and destruction of roads in the areas where oil and gas are extracted. Currently, each parish governing authority receives one-fifth of the severance tax on all natural resources other than sulphur, lignite, or timber severed or produced in the parish.[2] Thirty of Louisiana's sixty-four parishes stand to benefit from the severance tax sharing plan, though it is anticipated that only the top 18 producing parishes will see the full benefit of the increase.[3]

Specific Provisions

If it had passed, the measure would have:

  • Amended Article VII of the Louisiana Constitution to increase the amount of the state's severance tax that is allocated to parishes (counties) where oil and gas are extracted to $2.85 million from $850,000, with at least half of the increased revenue to parishes going into transportation needs.[4],[5]
  • Required that at least half of any increased funding received by the affected parishes would go to transportation needs.
  • Required revenues resulting from extraction in the Atchafalaya Basin, in the amount of 50%, are to be reserved for basin projects.
  • Been phased in beginning in 2009.[3]


Supporters

Supporters included:

See also

References

  1. ↑ Louisiana SOS, Election 2008 results
  2. ↑ 2008 State legislative highlights
  3. ↑ 3.0 3.1 The Voice of the Louisiana Construction Industry: "Reporting on the last week of the session"
  4. ↑ Louisiana Secretary of State
  5. ↑ Text of HB 932 on the Louisiana state legislature's website
  6. ↑ Biography of Richard Gallot


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