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LA HB600

Bill

Official Source

Status

Passed

6/11/2025

Primary Sponsor

Brett Geymann

Click for details

Origin

House of Representatives

2025 Regular Session

AI Summary

  • Oil severance tax rate reduced from 12.5% to 6.5% for wells completed on or after July 1, 2025; wells completed before that date remain at 12.5%
  • "Incapable wells" (producing ≤25 barrels/day with ≥50% salt water) taxed at 6.25% of value at severance
  • "Stripper wells" (producing ≤10 barrels/day) and mining/horizontal drilling projects in stripper fields taxed at 3.125% of value at severance
  • Inactive wells (2+ years idle) restarted before October 1, 2028 receive 75% tax reduction; those restarted on or after that date receive 50% reduction for 10 years
  • Orphan wells (designated 60+ months) receive 87.5% tax reduction if production begins before October 1, 2028, or 75% reduction if production begins on or after that date, for 10 years

Legislative Description

Reduces the rate of severance tax on oil produced from newly completed wells and provides relative to special rates on oil produced from certain limited-production wells (EN DECREASE GF RV See Note)

TAX/SEVERANCE TAX

Last Action

Effective date: See Act.

6/11/2025

Committee Referrals

Finance6/3/2025
Revenue & Fiscal Affairs5/12/2025
Ways and Means4/4/2025

Full Bill Text

No bill text available