dependents was 390,990. The cost of governmental services for 

 this number of people was estimated to be $265 million. 

 Approximately 40% of this amount is borne by individual tax- 

 payers and 60% by corporations (Gulf South Research Institute 

 (GSRI), no date: 46). OCS operations beyond the 3-mile limit 

 are outside the state's jurisdiction so no tax revenues are 

 available from these activities to Louisiana. However, the 

 state and local governments must still provide onshore services 

 to the OCS corporations, employees, and employees' dependents. 

 Since the tax revenue to support these services is not avail- 

 able, the costs must be borne by others. Therefore, most 

 of the funds to support the $265 million in government 

 services came from sources not directly related to OCS activity 



The taxes collected from the offshore industry (opera- 

 tions within the 3-mile area of state jurisdiction) and the 

 taxes foregone ( operations beyond the 3-mile limit) for the 

 years 1965-1972 are described in Table 4.4. In 1972, at 

 least $144.4 million in taxes was foregone. The Louisiana 

 Department of Revenue estimates $183.5 million foregone 

 when they include income, corporate franchise, sales and 

 use, and occupational license taxes foregone in addition to 

 the severance, ad valorem, and miscellaneous taxes included 

 in the table (GSRI, no date: 42-43). Had this amount been 

 available and added to the approximately $33 million col- 

 lected (totaling $216 million), the $265 million 



By comparison, Texas' seaward jurisdiction extends 10.5 

 nautical miles providing more potential taxes. 



135 



