TAX/SEVERANCE TAX: Provides relative to rates, computation, and administration of severance tax on oil, gas, and other natural resources (EN NO IMPACT GF RV See Note)
HB 518 updates Louisiana's severance tax rules for oil, gas, and natural resources. It requires independent certified public accountants (CPAs) to verify well completion costs for tax exemptions, mandating specific reporting standards and independence from oil/gas operators. The bill also clarifies how severance tax revenue is allocated: parishes receive 1/3 of sulfur tax (max $100,000), 1/3 of lignite tax, 1/5 of other resource taxes (max $500,000), and 3/4 of timber tax, as defined by the state constitution. These changes directly affect oil/gas companies paying the tax, CPAs performing audits, and local parishes receiving allocated funds.
Bill status
signed
all 5 stages cleared
Introduction
Apr 2025
Committee Review
Jun 2025
House Passage
May 2025
Senate Passage
Jun 2025
Signed into Law
Jun 2025
Introduced Apr 4, 2025
Signed Jun 20, 2025
Maddy AI version diff · 3 comparisons
What changed between versions
HB518 Original
→
HB518 Act
·
6 edits
MODERATE
This bill updates the official title and scope of the severance tax law to include administration, definitions, and tax dedications. It significantly modernizes tax rates for oil and gas, clarifies how 'value' is calculated, and introduces new exemptions for low-producing 'stripper wells' and specific horizontal drilling projects. The changes aim to align the tax code with current industry practices and provide relief to small producers.
Scope change
The bill expands the scope from a simple rate-setting statute to a comprehensive framework covering administration, definitions, and specific well classifications.
SCOPE
The bill's purpose statement was expanded to explicitly include provisions for tax administration, definitions, and the dedication of tax revenues.
REQUIREMENT
Tax rates for oil were updated to clarify that the value is the higher of gross receipts or posted field price, and new rules were added for calculating rates on 'incapable' and 'stripper' wells.
ELIGIBILITY
New exemptions and reduced tax rates were created for oil produced from wells that cannot produce more than 25 barrels per day (incapable wells) or 10 barrels per day (stripper wells).
A specific exemption was added for crude oil from certified stripper wells if the average market value is less than $20 per barrel.
A reduced tax rate was established for oil produced from wells in 'stripper fields' utilizing gravity drainage in horizontal drilling projects.
DEFINITION
The definition of a 'stripper field' was added to specify geological formations designated by state rules for gravity drainage operations.
Floor votes · Senate Jun 8, 2025 · House May 8, 2025
How they voted
36–0
Passed · 1 other
Total votes 37
Jun 8, 2025
D
Democratic11
100% Yea
R
Republican26
96% Yea
Vote distribution
All Yea
All Nay
Mixed
No data
Full legislative history
Actions timeline
Total actions
37
Key actions
11
Committee
12
Jun 12, 2025
Lower · Passed
Notice of Senate adoption of Conference Committee Report.
lower
Jun 12, 2025
Upper · Passed
Conference Committee Report read; adopted by a vote of 33 yeas and 0 nays.
upper
Jun 12, 2025
Upper · Passed
Notice House adopted the Conference Committee Report.
upper
Jun 12, 2025
Lower · Passed
Conference Committee Report read, roll called, yeas 95, nays 0. The Conference Committee Report was adopted.
lower
Jun 12, 2025
Lower · Passed
Conference Committee report received. Lies over under the rules.
lower
Jun 11, 2025
Upper · Passed
Notice House Conference Committee members appointed.
upper
Jun 11, 2025
Upper · Passed
Senate conference committee members appointed: Bass, Foil, and Reese.
upper
Jun 8, 2025
Upper · Passed
Senate floor amendments read and adopted. Read by title, passed by a vote of 38 yeas and 0 nays, and ordered returned to the House. Motion to reconsider tabled.
upper
Jun 3, 2025
Committee
Read by title and referred to the Legislative Bureau.
upper
Jun 2, 2025
Upper · Passed
Reported favorably.
upper
May 8, 2025
Lower · Passed
Read third time by title, roll called on final passage, yeas 96, nays 0. Finally passed, title adopted, ordered to the Senate.
lower
May 5, 2025
Lower · Passed
Reported favorably (12-0).
lower
Apr 14, 2025
Committee
Read by title, under the rules, referred to the Committee on Ways and Means.
lower
Apr 4, 2025
Committee
Under the rules, provisionally referred to the Committee on Ways and Means.
lower
1 primary · 0 co-sponsors
Sponsors
Role
Legislator
Party
State
District
P
Brett Geymann
RRepublican
Ask Maddy
·
AI policy assistant
Ask Maddy about HB 518
Scope: LA
Hi! I can help you understand HB 518. What would you like to know?
Try one of these
i
Maddy answers using official bill text and legislative records. Always verify before sharing.
Sources cited inline