RIB 12-018: Severance Tax Remittances on Horizontal and Deep Wells

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 12-018, addressing severance tax remittances on horizontal and deep wells.

Louisiana Revised Statutes 47:633(7)(c)(iii) and (9)(d)(v) allow for the suspension of severance tax on horizontal or deep wells for two years or until payout, whichever occurs first. In order to reflect oil and gas severance tax collections more accurately, the Louisiana Department of Revenue will no longer require severance tax payments on production from horizontal or deep wells for which final approval is pending from the Office of Conservation on the Application for Well Status Determination beginning with the June production month, due August 25.

Click here to read the full text of RIB 12-018.


LDR News Release – Free online filing help for businesses

BATON ROUGE – Free training is available for businesses who want to file their state taxes online with the Louisiana Department of Revenue (LDR).

 A series of online courses is available on the LDR website at www.revenue.louisiana.gov/courses.  They include an overview of the Louisiana Taxpayer Access Point (LaTAP), the state’s online portal for business tax filing; a tutorial on registering and filing severance taxes; and instructions for registering for International Fuel Tax Agreement (IFTA) decals.

 These courses are free.  Find them under “Business Online Filing Help” at www.revenue.louisiana.gov/courses.



LDR Emergency Rule: Electronic Filing Requirements for Oil or Gas Severance Tax

The Louisiana Department of Revenue has issued Emergency Rule LAC 61:III.1525 concerning the Electronic Filing Requirements for Oil or Gas Severance Tax.

Under the authority of R.S. 47:1511, which authorizes the secretary of revenue to prescribe rules and regulations to carry out the purposes of Title 47 of the Louisiana Revised Statutes of 1950 and the purposes of any other statutes or provisions included under the secretary’s authority, and in accordance with the provisions of the AdministrativeProcedure Act, R.S. 49:950 et seq., and specifically the emergency provisions of R.S. 49:953(B), the Department of Revenue, Policy Services Division, hereby issues the following Emergency Rule to amend LAC 61:III.1525 to mandate the electronic filing of the applications for reduced oil or gas severance tax rates, Forms 0-2 and G-2.


RIB 11-003: 2011 Severance Tax Values for Timber Products

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 11-003, which establishes timber severance tax values for 2011.

Louisiana Revised Statute 47:633 imposes a severance tax on timber and pulpwood based on the current average stumpage market value determined annually on the second Monday of December by the Louisiana Forestry Commission and the Louisiana Tax Commission.

Visit revenue.louisiana.gov to read the full text of RIB 11-003.


Revenue Information Bulletin 09-056 – Crude Oil and Natural Gas Severance Tax Filing Changes

The Louisiana Department of Revenue has issued Revenue Information Bulletin (RIB) 09-056 explaining changes for the filing of oil and natural gas severance taxes.

Beginning with the January 2010 Severance Tax reports, due March 25, 2010, prior period amended credit returns will no longer be allowed to be offset against amounts owed. Instead, credit amounts will be refunded.

Reporting and Adjustments to Prior Periods

Severance taxpayers who file paper returns must file separate detail returns and summaries for each tax period. In addition, changes to prior periods must be reported on separate amended returns for each tax period. Taxpayers who file electronically will report the current month’s detail information separately from amended returns and pay the correct amount of tax due as shown on the current month’s return.

Because prior period credits can no longer be used to offset amounts owed, payment of amounts owed on returns must be made with each return. Credits resulting from changes reported on amended returns will be refunded.

Electronic Filing and Payment

The following forms may be filed electronically:

  • Oil or Gas Severance Tax Return-Lease Detail (Ol-d & G-ld);
  • Incapable/Stripper Well Reports (O-3 & G-3); and,
  • Well Reports for Exempt Wells (O-5 & G-5).

The Severance Parish Summaries (O1-S & G1-S) will be automatically created from the lease detail filings.

Taxpayers who file a return electronically will no longer automatically be mailed paper returns. However, a paper return will be mailed upon request.

Electronic tax payments may be made using existing electronic funds transfer payment methods, or by E-check, which is a new service available through the Department of Revenue’s web site.
Additional information about severance tax forms and instructions can be obtained from the Department’s web site at: www.revenue.louisiana.gov.

A Revenue Information Bulletin (RIB) is issued under the authority of LAC 61:III.101(D). A RIB is an informal statement of information issued for the public and employees that is general in nature. A RIB does not have the force and effect of law and is not binding on the public or on the Department of Revenue.


Revenue Information Bulletin 09-011: Natural Gas Severance Tax Rate Effective July 1, 2009

RIB 09-011:

The natural gas severance tax rate effective July 1, 2009, through June 30, 2010, has been set at 33.1 cents per thousand cubic feet (MCF) measured at a base pressure of 15.025 pounds per square inch absolute and at the temperature base of 60 degrees Fahrenheit.

This tax rate is set each year by multiplying the natural gas severance tax base rate of 7 cents per MCF by the “gas base rate adjustment” determined by the Secretary of the Department of Natural Resources in accordance with R.S. 47:633(9)(d)(i). The “gas base rate adjustment” is a fraction, of which the numerator is the average of the New York Mercantile Exchange (NYMEX) Henry Hub settled price on the last trading day for the month, as reported in the Wall Street Journal for the previous 12-month period ending on March 31, and the denominator is the average of the monthly average spot market prices of gas fuels delivered into the pipelines in Louisiana as reported by the Natural Gas Clearing House for the 12-month period ending March 31, 1990 (1.7446 $/MMBTU).

Based on this computation, the Secretary of the Department of Natural Resources has determined the natural gas severance “gas base rate adjustment” for April 1, 2008, through March 31, 2009, to be 472.82 percent. Applying this gas base rate adjustment to the base tax rate of 7 cents per MCF produces a tax rate of 33.1 cents per MCF effective July 1, 2009, through June 30, 2010. The reduced natural gas severance tax rates provided for in R.S. 47:633(9)(b) and (c) remain the same.

Revised reporting forms will be distributed as soon as they are available. Questions concerning the natural gas severance tax rate should be directed to the Taxpayer Services Division, Severance Tax Section at 225-219-7656, Option 3.