TAX/SEVERANCE TAX: (Constitutional Amendment) Provides relative to severance tax revenues remitted to parishes in which the associated severance occurs (EG -$65,000,000 GF RV See Note)

HB 294 proposes a constitutional amendment to change how Louisiana distributes severance taxes collected from natural resource extraction (like oil or gas). It would require 20% of these taxes (excluding sulfur, lignite, and timber) to be remitted to the parish where extraction occurs, removing the current $850,000 annual cap on payments. Instead, the maximum amount would increase each July 1 based on the previous year's Consumer Price Index. This directly affects parishes with resource extraction, allowing them to receive larger, inflation-adjusted payments starting in 2027. The amendment requires voter approval in the November 2026 election.