Julie Jardell posted a blog article on April 30, 2014 entitled “Louisiana Severance Tax Incentives.” The article provided an overview of certain tax incentives depending upon the classification of the well being drilled. The article also referenced several bills then before the Louisiana legislature that if passed, would alter these incentives.
On August 18, 2014, H. B. 712 was passed and Article 47:1624.1, entitled Interest on refunds; severance tax, was enacted. That new article provides:
Notwithstanding any other provision of law to the contrary, interest on a refund of an overpayment of severance tax to an operator show well qualifies for the severance tax suspension pursuant to R. S. 47:633(7)(c)(iii) or (9)(d)(v) for a new horizontal or deep wells shall be paid at the following rates:
(1)(a) For the refunds on or before the one hundred eightieth day after a properly filed claim for refund or an amended return for the new horizontal or deep well has been submitted to the department with all supporting documentation, interest on the refund shall be paid at the rate provided for in Subparagraph (b) of this Paragraph.
(b) The rate of interest to be paid on the refunds provided for in Subparagraph (a) of this Paragraph which are issued during a particular year shall be the rate for the year ascertained by the department, which shall be the U. S. Treasury Yield Curve Constant Maturity 6-Month Treasury rate on the first business day of October of the preceding year and published on or before the following January first.
(2) Interest on such refunds made after the one hundred eightieth day after a properly filed claim for refund or an amended return has been submitted to the department shall be the interest rate provided for in Paragraph (1) of this Section for the first one hundred eighty days, and the judicial rate for any period of time in excess of one hundred eighty days in accordance with the provisions of R. S. 47:1624.