Thread by @MelindaDeslatte

Without objection, House Ways & Means approves Republican Rep. Beau Beaullieu's bill to lower severance tax on certain oil drilling from a 12.5% rate to 8.5% over eight years. The state is estimated to lose $99M in taxes across five years, a loss growing in later years. #lalege

The tax cut would lessen collections for the state treasury by $10M in the 2025-26 budget year (the same year the 0.45% temporary sales tax is slated to expire). That tax cut would grow over time to $79M a year by the 2032-33 year, according to a financial analysis. #lalege

Bill supporters say the tax cut could spur new drilling activity and increase oil production to offset the loss. The Legislative Fiscal Office that advises lawmakers disagrees. An analyst says the prospect of new production isn't expected to fully cover the tax cut cost. #lalege

Still, lawmakers argued the tax cut could draw new business activity, and several Republican lawmakers suggested the tax cut should be even larger. The Police Jury Association opposed the bill because the tax cut would also strip dollars that go to local government. #lalege

Here's the financial analysis of HB259:
The bill heads next to the full House for debate. #lalegelegis.la.gov/legis/ViewDocu…