(The Center Square) − Louisiana collected more than $81 million in severance taxes during the quarter ending June 30, with oil and gas revenues nearly evenly split, according to new figures released by the Louisiana Department of Revenue.
Since the beginning of the calendar year, the state has collected $169 million in severance.
The report comes just ahead of sweeping changes to the state’s severance tax structure, that took effect on July 1, aimed at stimulating oil production and revisiting how revenues are shared with local governments.
According to the data, the state brought in $41.16 million from oil production and $36.88 million from natural gas during the final quarter of fiscal year 2025.
DeSoto Parish led all parishes in total severance collections with over $12.4 million, followed by Caddo ($11.7 million), Plaquemines ($9.6 million), and Lafourche ($5.38 million), reflecting strong production in the Haynesville Shale and Gulf regions.
Under House Bill 600, passed during the 2025 legislative session and authored by Rep. Brett Geymann, R-Lake Charles, the severance tax on oil dropped from 12.5% to 6.5% for wells completed on or after July 1.
Geymann pitched the changes as a way to revitalize Louisiana’s energy economy, arguing that the state’s high severance tax has driven investment to other states.
“The motivation is to get the oil and gas industry booming again,” Geymann told lawmakers. “We’re uncompetitive as it stands.”
While oil producers will see lower tax burdens, a separate provision in HB600 also scales back a popular exemption for natural gas from newly completed horizontal wells. Beginning July 1, the tax exemption period shrinks from 24 months to 18 months — though existing wells are unaffected.
Geymann said the modification is meant to make the overall package fiscally neutral and emphasized that most gas wells already pay out within that timeframe.
