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HLS 26RS-770 ORIGINAL
2026 Regular Session
HOUSE BILL NO. 602
BY REPRESENTATIVE BAMBURG
TAX/SEVERANCE TAX: (Constitutional Amendment) Increases the maximum annual
amount of severance tax revenues that may be 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 increase the amount of severance tax revenues remitted
5 to parishes; to provide for the maximum amount of state severance tax revenues
6 remitted to parishes annually; to provide for limitations and requirements; to repeal
7 provisions requiring an increase in the maximum annual amount remitted to parishes
8 if certain conditions are met; to repeal a limitation on the expenditure of severance
9 tax revenues by parishes; to provide for an effective date; to provide for submission
10 of the proposed amendment to the electors; and to provide for related matters.
11 Section 1. Be it resolved by the Legislature of Louisiana, two-thirds of the members
12 elected to each house concurring, that there shall be submitted to the electors of the state of
13 Louisiana, for their approval or rejection in the manner provided by law, a proposal to
14 amend Article VII, Section 4(D)(3) of the Constitution of Louisiana, to read as follows:
15 §4. Income Tax; Severance Tax; Political Subdivisions
16 Section 4.
17 * * *
18 (D)
19 * * *
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HLS 26RS-770 ORIGINAL
HB NO. 602
1 (3)(a) Effective July 1, 2007 Beginning July 1, 2027, subject to the
2 limitations provided for in Subsubparagraph (b) of this Subparagraph, one-fifth of
3 the severance tax on all natural resources other than sulphur, lignite, or timber shall
4 be remitted to the governing authority of the parish in which severance or production
5 occurs.
6 (b)(i) In Fiscal Year 2026-2027, the The initial maximum amount that may
7 be remitted to the a parish in which severance or production occurs shall not exceed
8 eight hundred fifty thousand be three million dollars.
9 (ii) In Fiscal Year 2027-2028, the maximum amount that may be remitted
10 to a parish in which severance or production occurs shall be six million dollars.
11 (iii) In Fiscal Year 2028-2029, the maximum amount that may be remitted
12 to a parish in which severance or production occurs shall be nine million dollars.
13 (iv) In Fiscal Year 2029-2030, the maximum amount that may be remitted
14 to a parish in which severance or production occurs shall be twelve million dollars.
15 (v) In Fiscal Year 2030-2031, and thereafter, the maximum amount that may
16 be remitted to a parish in which severance or production occurs shall be fifteen
17 million dollars. Beginning July 1, 2032, The the maximum allowable amount
18 remitted to a parish shall be increased each July first, beginning in 2008, by an
19 amount equal to the average annual increase in the Consumer Price Index for all
20 urban consumers, as published by the United States Department of Labor, for the
21 previous calendar year, as calculated and adopted by the Revenue Estimating
22 Conference.
23 * * *
24 Section 2. Be it resolved by the Legislature of Louisiana, two-thirds of the members
25 elected to each house concurring, that there shall be submitted to the electors of the state of
26 Louisiana, for their approval or rejection in the manner provided by law, a proposal to repeal
27 Article VII, Section 4(D)(4) of the Constitution of Louisiana.
28 Section 3. Be it further resolved that the provisions of the amendment contained in
29 this Joint Resolution shall become effective January 1, 2027.
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HLS 26RS-770 ORIGINAL
HB NO. 602
1 Section 4. Be it further resolved that this proposed amendment shall be submitted
2 to the electors of the state of Louisiana at the statewide election to be held on November 3,
3 2026.
4 Section 5. Be it further resolved that on the official ballot to be used at the election,
5 there shall be printed a proposition, upon which the electors of the state shall be permitted
6 to vote YES or NO, to amend the Constitution of Louisiana, which proposition shall read as
7 follows:
8 Do you support an amendment to increase the existing limitation on the
9 amount of state severance tax revenues returned to parishes where the
10 mineral production occurs? (Effective January 1, 2027) (Amends Article VII,
11 Section 4(D)(3); Repeals Article VII, Section 4(D)(4))
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 602 Original 2026 Regular Session Bamburg
Abstract: Increases the maximum annual amount of state severance taxes that may be
remitted to a parish in which the severance or production occurs over a five-year
period from $850,000 adjusted annually for inflation to $15M, to be adjusted
annually for inflation beginning in 2032.
Present constitution requires 20% of the state severance tax on natural resources other than
sulphur, lignite, or timber to be remitted to the governing authority of the parish in which
severance or production occurs. Present constitution limits the maximum annual amount of
severance tax revenue that may be remitted to a parish to $850,000; however, beginning July
1, 2008, this amount is required to be adjusted for inflation by an amount equal to the
average annual increase in the Consumer Price Index (CPI). The inflation-adjusted
maximum amount for Fiscal Year (FY) 2024-2025 is $1,327,391.
Proposed constitutional amendment increases the maximum annual amount that may be
remitted to a parish in which severance or production occurs as follows:
(1) For FY 2026-2027, the maximum amount shall be $3M.
(2) For FY 2027-2028, the maximum amount shall be $6M.
(3) For FY 2028-2029, the maximum amount shall be $9M.
(4) For FY 2029-2030, the maximum amount shall be $12M.
(5) For FY 2030-2031, and thereafter, the maximum amount shall not exceed $15M.
However, beginning July 1, 2032, the maximum annual amount shall be increased
each July first by an amount equal to the average annual increase in the CPI.
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HLS 26RS-770 ORIGINAL
HB NO. 602
Present constitution provides for increasing state severance tax revenue amounts remitted
to parishes if certain conditions are met. Provides for a schedule of increases to be
implemented if and when the official forecast of severance tax revenues for a FY exceeds
actual severance tax collections from FY 2008-2009. Provides further for the expenditure
by parishes of certain amounts remitted in accordance with this schedule.
Proposed constitutional amendment repeals present constitution.
Proposed constitutional amendment becomes effective Jan. 1, 2027.
Provides for submission of the proposed amendment to the voters at the statewide election
to be held Nov. 3, 2026.
(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.