By T. Scott Boatright
The Lincoln Parish Police Jury got a recent budget boost after receiving its first oil and gas industry severance tax payout in three years.
LPPJ contract accountant Laura Hartt told juror during last week’s monthly meeting that the parish had received a payment in the amount of $403,663,
Hartt said that with the payment she expects to LPPJ to exceed $1.2 million in total severance tax payment for 2021.
Severance taxes are paid to the state on the extraction of natural resources and then remitted to local governments where the extraction occurred.
“The budget (for 2021) reflects $394,000 in severance taxes, so we’ve already surpassed out budget for the year,” Hartt said.
Parishes are limited to a maximum severance tax collection of $1 million per year.
Previously the severance tax funding has gone to the LPPJ’s general fund. The LPPJ is expected to wait until receiving all severance tax payments near the end of the year before amending its general fund budget to reflect the revenue increase.
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