In yesterday’s press conference, Governor John Bel Edwards announced he has authorized the Louisiana Department of Revenue to hold off on collecting severance taxes in response to the collapse of oil prices this week.
The severance tax collection will be suspended until June 25.
Louisiana Oil & Gas Association (LOGA) President Gifford Briggs said in an email this decision is a welcome step in the right direction.
“We are grateful that Governor Edwards has recognized the severe crisis that is facing the industry and has heard our calls for severance tax relief,” Briggs said. “We look forward to continuing to work with the administration and the Louisiana Legislature on additional measures to help small and independent producers, service companies and the thousands of hard working men and women that make up the industry. We need bold, decisive action in order to survive. We fully support efforts to re-open the economy as safely and quickly as possible as outlined by President Trump and the Centers for Disease Control. We need to expand severance tax relief to include a suspension of severance taxes and bring an end to the government sponsored-coastal lawsuits. Companies can ill afford to be spending resources paying lawyers instead of making payroll.”