Severance tax delay wins praise in Louisiana

Staff Report
U.S. Rep. Clay Higgins, the Republican who represents St. Mary in Congress, praised Gov. John Bel Edwards’ decision to delay required severance tax payments for the energy industry.
Severance taxes that had been due April 25 will now be due June 25.
“I am grateful that Governor Edwards has taken Executive action to delay Louisiana’s severance tax,” Higgins said in a press release Wednesday. “This decision will help preserve oil and gas jobs and provide temporary relief to the industry. Given the magnitude of this crisis, further and more permanent action will be necessary.
“My office will continue pushing for relief measures at both the state and federal level.”
Higgins sent letters to Edwards on March 23 and April 21 requesting a temporary reduction or suspension of the severance tax.
The Louisiana Oil and Gas Association, a trade group representing the state’s independent energy companies, also praised Edwards’ move as a first step.
“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,” LOGA President Gifford Briggs said in a press release.
“The decision to delay severance tax payments and provide temporary relief to the industry is a welcome first step. 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.”