Louisiana 2012 Regular Session

Louisiana Senate Bill SB463

Introduced
3/12/12  
Refer
3/12/12  

Caption

Establishes the Corporate Tax Apportionment Program for the granting of contracts for certain businesses to utilize the single sales factor to compute their taxable for income tax purposes and their taxable capital for franchise tax purposes. (7/1/12) (EG DECREASE GF RV See Note)

Impact

The impact of SB463 on state laws is significant as it alters how businesses compute taxable income and capital, notably simplifying the tax calculation process for qualified entities. The program applies to businesses that derive at least 50% of their sales from out-of-state customers or from federal contracts, providing a clear incentive for firms that meet these criteria. However, it specifically excludes businesses primarily involved in retail sales, real estate, financial services, or gaming, unless they create a minimum number of qualifying jobs. This exclusion is noteworthy as it streamlines eligibility for businesses more likely to contribute to state economic goals.

Summary

Senate Bill 463 establishes the Corporate Tax Apportionment Program in Louisiana, which allows certain businesses to utilize the single sales factor methodology for computing their corporate income and franchise taxes. This program is designed to encourage businesses to locate or expand in Louisiana, providing tax benefits contingent on creating new jobs, particularly 'headquarter jobs' or 'shared service center jobs'. It aims to make Louisiana a more attractive location for businesses by fostering economic development and job creation.

Sentiment

The sentiment around SB463 appears mixed, reflecting a broader debate on taxation and economic development priorities in Louisiana. Proponents advocate the bill as a vital tool for attracting businesses and generating employment, framing it as a necessary measure to compete with other states that offer similar tax incentives. Conversely, critics raise concerns about the exclusions and the potential prioritization of corporate benefits over local community needs. They argue that the targeted approach may exclude deserving businesses that could also promote economic growth.

Contention

One notable point of contention regarding SB463 is its potential to favor large corporations at the expense of local businesses that do not meet the stringent requirements for participation. The strict eligibility conditions, which favor specific sectors while excluding others, have sparked a discussion on the fairness of tax policy and the need for a more inclusive approach that supports a diverse range of businesses. The bill's expiration of new contracts after July 1, 2017, adds another layer of complexity, raising questions about its long-term viability and the consequences for businesses that may have relied on these incentives.

Companion Bills

No companion bills found.

Previously Filed As

LA SB46

Provides relative to merger of the La. School Employees' Retirement System into the Teachers' Retirement System of La. (6/30/12)

LA SB90

Provides for new birth certificate after judgment of filiation. (8/1/12) (EN SG RV See Note)

LA SB623

Provides relative to basic rights of victims and witnesses of certain sex offenses. (gov sig)

LA SB481

Provides relative to discovery procedures for certain evidence in certain criminal proceedings. (gov sig)

LA SB215

Establishes the SNAP Fraud and Abuse Detection and Prevention Fund in the state treasury and provides funding to enhance fraud and abuse detection and prevention activities related to the Supplemental Nutrition Assistance Program. (gov sig) (EN SD RV See Note)

LA SB494

Provides relative to teacher selection and the granting of extended sick leave and sabbatical leave for teachers and other school employees. (gov sig)

LA SB565

Prohibit death row inmate from selling items produced by him. (gov sig) (EN INCREASE SG EX See Note)

Similar Bills

LA HB729

Extends the single sales factor for computation of corporate income and franchise taxes for manufacturing or merchandising to other qualified businesses through establishment of the Corporate Tax Apportionment Program (EN DECREASE GF RV See Note)

LA HB12

Provides relative to the apportionment ratio for purposes of computing corporate income tax and provides for the sourcing of sales (Item #44)

LA HB20

Provides relative to the apportionment ratio for purposes of computing corporate income tax and provides for the sourcing of sales (Item #44) (EN INCREASE GF RV See Note)

LA SB269

Requires corporations subject to Louisiana income or franchise tax which have either corporate gross revenues everywhere of $8 billion or $8 million of assets everywhere to file combined returns and limits their NOL deduction to 50% of tax liability. (gov sig) (EG INCREASE GF RV See Note)

LA HB648

Levies the Louisiana Business Tax (OR INCREASE GF RV See Note)

LA HB647

Levies the Louisiana Petroleum Refinery Business Tax

LA HB627

Provides relative to the prohibition on certain precinct changes during certain time periods

LA HB608

Provides relative to corporate income and franchise tax reform