SLS 10RS-1460 RE-REENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2010
SENATE BILL NO. 707
BY SENATOR ALARIO
TAX/LOCAL. Provides for the definition of contractor for purposes of the occupational
license tax in certain parishes. (8/15/10)
AN ACT1
To amend and reenact R.S. 47:342(3), relative to the occupational license tax; to define2
contractor for purposes of the occupational license tax in certain parishes; and to3
provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:342(3) is hereby amended and reenacted to read as follows: 6
ยง342. General definitions 7
For the purposes of this Chapter, unless the context clearly otherwise requires8
or unless otherwise defined in specific portions of the Chapter, the following words9
shall have the respective meanings ascribed to each in this Section.10
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(3)(a) Contractor. "Contractor" is synonymous with the term "Builder" and12
means a person, firm, partnership, corporation, association, or other organization, or13
a combination of them, which undertakes to or offers to undertake to, or purports to14
have the capacity to undertake to, or submits a bid to, or does himself or by or15
through others, construct, alter, repair, add to, subtract from, improve, move, wreck,16
or demolish any building, highway, road, railroad, excavation, or other structure,17 SB NO. 707
SLS 10RS-1460 RE-REENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
project, development or improvement, or to do any part thereof, including the1
erection of scaffolding or other structure or works in connection therewith and2
includes subcontractors and specialty contractors. As such, the word, "contractor"3
shall include oil field service contractors, which shall consist of including those4
contractors performing general oil well servicing, maintenance, and construction5
when conducted as a single company unit. "General oil well servicing" shall include6
welding, pipe coating, pipe inspection, wireline service, automation, workover,7
logging, analysis, seismograph, installing and servicing equipment, packing,8
platform work, perforating, and completion.9
(b) Notwithstanding any provision of law to the contrary, in any parish10
with a population of between four hundred and fifty thousand and four11
hundred and eighty thousand, according to the latest federal decennial census,12
"contractor" shall be synonymous with the term "builder" and means a person,13
firm, partnership, corporation, association, or other organization, or a14
combination of them, which undertakes to or offers to undertake to, or purports15
to have the capacity to undertake to, or submits a bid to, or does himself or by16
or through others, construct, alter, repair, add to, subtract from, improve,17
move, wreck, or demolish any building, highway, road, railroad, excavation, or18
other structure or movable, project, development or improvement, or to do any19
part thereof, including the erection of scaffolding or other structure or works20
in connection therewith and includes subcontractors and specialty contractors.21
As such, the word, "contractor" shall include oil field-related fabrication and22
oil field service contractors, including those contractors performing23
maintenance, construction, and fabrication of tangible property, movable or24
immovable, and general oil well servicing, maintenance, and construction when25
conducted as a single company unit. "General oil well servicing" and26
"fabrication" shall include welding, pipe coating, pipe inspection, wireline27
service, automation, workover, logging, analysis, seismograph, installing and28
servicing equipment, packing, platform work, perforating, and completion.29 SB NO. 707
SLS 10RS-1460 RE-REENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
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Section 2. The provisions of R.S. 47:342(3)(b) as enacted by this Act shall cease to2
be effective on July 1, 2011.3
The original instrument was prepared by Martha Hess. The following digest,
which does not constitute a part of the legislative instrument, was prepared
by Michelle Broussard-Johnson.
DIGEST
Alario (SB 707)
Present law authorizes municipalities and parishes to levy and collect an occupational license
tax on persons doing business within the territorial jurisdiction of the municipality or parish,
depending on the class of business as defined in present law.
Present law defines the class of business of "contractor" as synonymous with the term
"builder" and includes in that definition that the word "contractor" includes oil field service
contractors, which shall consist of those contractors performing general oil well servicing,
maintenance, and construction when conducted as a single company unit.
Proposed law specifically includes in the definition of "contractor" in parishes with a
population of between 450,000 and 480,000 oil field-related fabrication as well as oil field
service contractors, and includes those contractors performing maintenance, construction,
and fabrication of tangible property, movable or immovable, and general oil well servicing,
maintenance, and construction when conducted as a single company unit.
Effective August 15, 2010.
(Amends R.S. 47:342(3))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal
Affairs to the engrossed bill.
1. Changes the proposed law to apply only in parishes with a population
between 450,000 and 480,000.
2. Changes the bill to remove work "on movables" from the definition of
"contractor" and expands the definition of the type of oil field contracting
and fabricating which is included in "contractor" as set forth above.