Parish legislative liaison outlines severance tax bills including HB 294 and broader package HB 427

A legislative update to the DeSoto Parish Police Jury detailed several bills that could affect parish revenue and authority, with a focus on severance tax changes being advanced in the Louisiana Legislature.

The update noted that a prior constitutional amendment failed and that Representative Larry Bagley has filed House Bill 294, which would address the same severance tax language contained in the failed amendment; HB 294 was reported scheduled for committee. Chance, who briefed jurors, said HB 427 also includes severance language as part of a larger package and that the timing and structure of bills — stand‑alone versus omnibus — carries different fiscal and political consequences. Chance said companies operating in DeSoto Parish paid $913 million in severance tax to the state from 2002 through the fiscal year ending 2023 and estimated more than $150 million in revenue that otherwise could have supported local governments has been constrained by the cap.

Chance warned jurors that legislators sometimes package multiple constitutional or statutory changes together to manage net fiscal impact, and he described other bills of interest to parishes including local term‑limits legislation (SB113 by Seabaugh) and a range of bills related to carbon sequestration, inventory tax and franchise issues. He said Bagley scheduled an effective date delayed to give jurisdictions time to plan if the bill passes.

Jurors asked clarifying questions about whether severance items could be offered separately on a ballot; Chance explained that an a‑la‑carte approach could produce unintended budget shortfalls because voters might approve revenue‑reducing items without the offsetting changes. The jury did not take formal action but was advised staff and representatives will attend committee hearings and testify as needed.