LOGA: Governor Edward’s Chief Tax Proposal Filed 

The Louisiana Oil and Gas Association needs your help. Representative Sam Jones of Franklin has filed House Bill 628; the Governor’s chief tax proposal, the Commercial Activity Tax.

The Commercial Activity Tax, which is commonly referred too as the CAT tax, is projected to raise between $800 – $900 million more in taxes for Louisiana businesses across the state. A tax increase of this nature raises serious concern about its effect on Louisiana’s oil and gas industry.

The CAT Tax hits businesses in two ways. It not only is applied at the final sale of product, but also to all the transaction leading up to that sale. These transactions include the purchase of supplies, basic materials for production, services, as well as the purchase of equipment of which is vital to the exploration and production of oil and gas.

We request that you take a few moments to review the language of HB 628 to see how exactly this may affect your company and the way you perform your business. LOGA is also looking for individuals who may be interested, and able to testify on  Tuesday, April 25 before a House Committee meeting.

We are thankful for any assistance you can provide.

Please email me at gifford@loga.la with any question, concerns about how this may affect your business, and if you can represent the Louisiana oil and gas industry at the state legislature.

Click Here for the full text of HB 628.

Click Here for an abbreviated version of HB 628.