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)

HLS 26RS-69 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 156
BY REPRESENTATIVE BAGLEY
TAX/SEVERANCE TAX: (Constitutional Amendment) Provides relative to severance tax
revenues remitted to parishes in which the associated severance occurs
1 A JOINT RESOLUTION
2 Proposing to amend Article VII, Section 4(D)(3) of the Constitution of Louisiana and to
3 repeal Article VII, Section 4(D)(4) of the Constitution of Louisiana, relative to state
4 severance tax revenues; to repeal limits on amounts of severance tax revenues
5 remitted to parishes; to repeal requirements associated with certain severance tax
6 revenue amounts remitted to parishes; to provide for submission of the proposed
7 amendment to the electors; to provide for an effective date; and to provide for related
8 matters.
9 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
10 elected to each house concurring, that there shall be submitted to the electors of the state of
11 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
12 amend Article VII, Section 4(D)(3) of the Constitution of Louisiana, to read as follows:
13 §4. Income Tax; Severance Tax; Political Subdivisions
14 Section 4.
15 * * *
16 D.
17 * * *
18 (3) Effective July 1, 2007 2027, one-fifth of the severance tax on all natural
19 resources other than sulphur, lignite, or timber shall be remitted to the governing
20 authority of the parish in which severance or production occurs. The initial
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
HLS 26RS-69 ORIGINAL
HB NO. 156
1 maximum amount remitted to the parish in which severance or production occurs
2 shall not exceed eight hundred fifty thousand dollars. The maximum amount
3 remitted shall be increased each July first, beginning in 2008, by an amount equal to
4 the average annual increase in the Consumer Price Index for all urban consumers, as
5 published by the United States Department of Labor, for the previous calendar year,
6 as calculated and adopted by the Revenue Estimating Conference.
7 * * *
8 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
9 elected to each house concurring, that there shall be submitted to the electors of the state of
10 Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
11 Article VII, Section 4(D)(4) of the Constitution of Louisiana.
12 Section 3. Be it further resolved that the provisions of the amendment contained in
13 this Joint Resolution shall become effective July 1, 2027.
14 Section 4. Be it further resolved that this proposed amendment shall be submitted
15 to the electors of the state of Louisiana at the statewide election to be held on November 3,
16 2026.
17 Section 5. Be it further resolved that on the official ballot to be used at the election,
18 there shall be printed a proposition, upon which the electors of the state shall be permitted
19 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
20 follows:
21 Do you support an amendment to allow parishes to keep a percentage of
22 severance tax revenues, regardless of the dollar amount, by repealing limits
23 on the dollar amount of state severance tax revenues paid to the parishes
24 where the severance or production of natural resources occurs? (Effective
25 July 1, 2027) (Amends Article VII, Section 4(D)(3); Repeals Article VII,
26 Section 4(D)(4))
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HLS 26RS-69 ORIGINAL
HB NO. 156
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 156 Original 2026 Regular Session Bagley
Abstract: Repeals the limit on the dollar amount of state severance tax revenues remitted
to parishes where severance of the taxable resources occurs.
Present constitution requires that one-fifth of the severance tax on natural resources other
than sulphur, lignite, or timber be remitted to the governing authority of the parish which
severance or production occurs. Present constitution provides that, effective July 1, 2007,
the maximum amount remitted to any parish is limited to $850,000, but requires, beginning
in 2008, that the maximum amount remitted to a parish be increased each July first by an
amount equal to the average annual increase in the Consumer Price Index.
Proposed constitutional amendment repeals the present constitution limitation on the dollar-
amount limit on severance tax revenues remitted to parishes. Proposed constitutional
amendment requires one-fifth of all severance tax revenues on the natural resources specified
in present constitution, regardless of dollar amount, be remitted to the governing authority
of the parish in which severance or production occurs.
Proposed constitutional amendment repeals provisions of present constitution rendered
without effect by the repeal of the dollar amount limit on severance tax revenues to be
remitted to parishes.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2026.
Effective July 1, 2027
(Amends Const. Art. VII, §4(D)(3); Repeals Const. Art. VII, §4(D)(4))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.