When the Louisiana Tax Commission met Wednesday, they heard arguments that went to the heart of the state’s income versus outgo problem.
"Never in the history of our industry has it been as bad in Louisiana as it is today," said Louisiana Oil and Gas Association President Don Briggs.
"Our industry is on its knees. Our backs are to the wall. You're going to see a lot more layoffs," he continued.
Toby Hamrick, CFO of Shoreline Energy, says revenues for his company are down, and yet "taxes are going up dramatically as a percent of revenue."
The oil and gas industry was opposing any higher taxes.
Ellen Dunbar with the Louisiana Assessors' Association says to suggest that oil and gas is taxed unfairly is a misconception.
"In all honesty," she says, "industry has already been benefiting from grossly reduced costs for years, over a decade."
Local governments are getting pinched most by tax breaks the state gives to industry. That’s not lost on LOGA’s Darren Fredrickson.
"These taxes are everything to these schools, to these parishes. We get that. But what good is a tax that’s assessed that the companies can’t pay?" he asks.
Robert Gravolet, Chairman of the Louisiana Assessor’s Oil and Gas Committee, says no one can forget how vital the oil and gas industry is to the state’s economy.
"We are truly big supporters of this industry, as they are the lifeblood of many of our communities. We also believe that industry in these rules and regulations proceedings wants to have their cake and eat it too," he says.
According to the Treasurer’s latest Net Receipts Report issued in July, by the end of the 2016 fiscal year, Louisiana collected just $195 million in corporate taxes, barely more than half of what was expected.