WeVote
Log In

Bill

Bill

HB 156

TAX/SEVERANCE TAX: (Constitutional Amendment) Provides relative to severance tax revenues remitted to parishes in which the associated severance occurs (OR1 SEE FISC NOTE GF RV)

2026 Regular Session Introduced by Larry Bagley

Constitutional amendment redirecting $42.1M in annual severance tax revenues from state to resource-producing parishes, reducing state general fund revenues.

Read by title, under the rules, referred to the Committee on Ways and Means.
0
WeVote Research Nonpartisan
Bill Summary · HB 156

Legislative bill overview

HB 156 is a constitutional amendment proposal that modifies how severance tax revenues are distributed to parishes where natural resource extraction occurs. The bill redirects a portion of severance tax collections to the local parishes generating those revenues, rather than following current revenue allocation formulas. According to fiscal notes, this change would reduce state general fund revenues by approximately $42.1 million.

Why is this important

Severance taxes are payments collected when oil, gas, minerals, or timber are extracted from state lands or waters. This amendment directly affects funding for local infrastructure, education, and services in resource-producing parishes—primarily in coastal and rural Louisiana. The shift also represents a fundamental change in how the state balances local versus statewide revenue distribution from natural resource extraction.

Potential points of contention

  • State budget impact: The $42.1 million reduction to the state general fund could pressure funding for statewide programs, requiring either spending cuts elsewhere or increased taxes
  • Equity concerns: This benefits resource-rich parishes while potentially disadvantaging parishes without natural resource extraction, raising fairness questions about how public wealth is distributed
  • Implementation complexity: Determining "the parish in which severance occurs" for resources extracted offshore or across parish boundaries may create administrative and legal disputes

Compiled from official sources — confirm details with the bill’s official record.

Sign in to ask a question.