SLS 12RS-529 ORIGINAL
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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, 2012
SENATE BILL NO. 273
BY SENATOR PEACOCK
TAX/LOCAL. Excludes payments of a franchise fee or similar charge by an electric, gas,
or water public utility to a political subdivision in excess of two percent of the annual gross
receipts of the utility from adding the payment to the sales price and billing to customers in
the political subdivision. (gov sig)
AN ACT1
To amend and reenact R.S. 33:4510(D), relative to franchise fees and similar charges of2
political subdivisions; to exclude certain such payments of certain public utilities3
from the authority to add the amount of the payments to the sales price of such public4
utility's service and billing pro rata to the utility's customers receiving local service5
within the political subdivision; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 33:4510(D) is hereby amended and reenacted to read as follows: 8
ยง4510. Charge-back of certain taxes and other payments made to a political9
subdivision; construction, scope, and application of provisions10
* * *11
D.(1) The provisions of this Section shall not apply to any payments by a12
utility to a political subdivision in excess of five percent of the annual gross receipts13
of the utility from its customers within said political subdivision, whether said14
payments are made as a license, occupational, privilege, franchise, or inspection tax,15
charge, or fee, or by agreement between the utility and the political subdivision.16
(2) Notwithstanding any other law or agreement to the contrary,17 SB NO. 273
SLS 12RS-529 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
beginning January 1, 2013, the provisions of this Section shall not apply to any1
payments of a franchise fee or similar charge by an electric, gas, or water public2
utility to a political subdivision in excess of two percent of the annual gross3
receipts of the utility from its customers within such political subdivision.4
Section 2. This Act shall become effective upon signature by the governor or, if not5
signed by the governor, upon expiration of the time for bills to become law without signature6
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If7
vetoed by the governor and subsequently approved by the legislature, this Act shall become8
effective on the day following such approval.9
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law authorizes adding the amount of the type of taxes or payments set forth below
made by public utilities (including those utilities regulated by the Louisiana Public Service
Commission) to political subdivisions to the sales price of such public utility's service and
billing pro rata to the utility's customers receiving local service within the political
subdivision collecting such taxes or receiving such payments, to the extent that such tax or
payment was not included as a part of the cost of furnishing services in the fixing of the rates
and charges for such services by the Louisiana Public Service Commission.
The type of taxes or payments covered by present law are those collected or received from
a public utility operating within the political subdivision for or by reason of:
(1)The use of its streets, alleys, or public ways or places, or lands belonging to the state.
(2)The operation of the utility's business.
(3)Any agreement between the political subdivision and the utility.
The payments are covered whether they are called a license, occupational, privilege,
franchise, or inspection tax, charge, fee, or otherwise.
Present law excludes payment for occupational license tax and property taxes.
Present law excludes any payments by a utility to a political subdivision in excess of 5% of
the annual gross receipts of the utility from its customers within the political subdivision,
whether the payments are made as a license, occupational, privilege, franchise, or inspection
tax, charge, or fee, or by agreement between the utility and the political subdivision.
Proposed law excludes any payments of a franchise fee or similar charge by an electric, gas,
or water public utility to a political subdivision in excess of 2% of the annual gross receipts
of the utility from its customers within the political subdivision.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 33:4510(D))