Bill > HB294

This bill proposes a constitutional amendment to modify how severance tax revenues are distributed to parishes in Louisiana. Currently, when natural resources (such as oil, gas, or minerals) are extracted from a parish, one-fifth of the severance tax is remitted to that parish's governing authority. Under existing law, there is a maximum cap of $850,000 on these remittances, which increases annually based on the Consumer Price Index. The proposed amendment would eliminate this maximum dollar amount cap effective July 1, 2027, allowing parishes to receive the full one-fifth of severance tax revenues without limitation. The bill will be submitted to Louisiana voters at the November 3, 2026 statewide election, where voters will decide whether to support removing the current revenue limits. If approved, this change would provide parishes with potentially more substantial financial resources from natural resource extraction occurring within their boundaries, giving them greater fiscal flexibility and potentially more funding for local services and infrastructure.

Budget and Finance, Justice

https://www.legis.la.gov/legis/BillInfo.aspx?s=25rs&b=HB294&sbi=y