future-focused

Practices

Liskow has the experience and reputation to get to the center of any severance tax dispute and get it resolved as quickly and efficiently as possible.

Overview

Since the inception of the oil and gas industry, severance taxes on production have played a major role in a producer’s dealings with the State of Louisiana. The severance tax statutes purport to be clear an unambiguous, but for decades there have been areas where ambiguities arise litigation may be necessary.

Our lawyers have the expertise to guide you through any severance tax disputes and the reputation to be taken seriously by the Louisiana Department of Revenue, the entity that collects severance taxes. We have been instrumental in setting precedent regarding the meaning and reach of oil and gas severance taxes, not only for the immediate case, but also in clarifying the law so as to provide certainty on an ongoing basis. Most recently, the Louisiana Department of Revenue went after more than 50 small and midsized oil and gas producers in Louisiana, alleging that the longstanding method of calculating severance taxes on crude oil production did not accurately reflect the value of that production at the lease. Liskow handled the ”test case” for all those producers, obtained a favorable outcome in the Louisiana Board of Tax Appeals, and successfully defended that win in the appellate courts. As a result, all the producers were able to resolve their disputes and obtain certainty for the future on a economical and efficient basis.

Handling Severance Tax Disputes

Severance tax disputes often begin with an audit by the Louisiana Department of Revenue. If necessary, we can guide you through that audit and make sure that you take all of the necessary steps to preserve your rights to challenge any attempts by the taxing authority to collect severance taxes that are not due under the law. In addition, because of our wide contacts and premier reputation in this area, we can let you know whether the focus of the taxing authority is not just on your company but extends to a wider group of producers. In those cases, it makes sense for producers to cooperate in efforts to clarify the law for all of them in a way that is cost-effective for them and that resolves the issue for everyone. In instances where your issues are unique, we have been instrumental in addressing legal issues for the first time and in obtaining precedents that interpret the law in accordance with longstanding or widespread practices in the industry.

We know that severance tax disputes hinder your efforts to produce and market oil and gas from Louisiana properties, and we will aid you in getting those disputes resolved so that you can get back to your core business.

We are known for these strengths

  • Reputation with the taxing authorities for successfully defending the industry.
  • Knowledge of the taxing authorities’ attempts to target numerous producers at one time, and ability to coordinate the response of those producers for a more efficient and effective defense of the industry.
  • Success when it is necessary to take such matters to trial and defend those outcomes on appeal.

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