Louisiana House Votes to Cut Oil Producer Severance Tax Rate

Taxes on oil production in Louisiana would drop dramatically over the next eight years under legislation approved by the state House of Representatives Monday.

Lawmakers approved H.B. 259, which would slash the severance tax applied to oil producers. Like many states, Louisiana imposes an annual levy on extraction of minerals and other natural resources, including oil and gas. The House approved H.B. 259 by a vote of 86-13, sending it to the Senate for consideration.

The proposed law would cut Louisiana’s current 12.5% severance tax on oil production by annual increments of 0.5% beginning in fiscal ...