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Regular Session, 2012
SENATE RESOLUTION NO. 180
BY SENATOR MORRELL
REVENUE DEPARTMENT. Request the Department of Revenue to develop and encourage
"master limited partnerships" investments within the state of Louisiana.
A RESOLUTION1
To urge and request the Department of Revenue to develop a plan which will encourage and2
foster the use of "master limited partnerships (MLP)" investments in the state of3
Louisiana; to reconsider the department's position on denying MLPs exemptions4
relative to composite returns and withholding requirements; to request that the5
department and representatives of the MLP community study Louisiana revenue6
laws, rules, and regulations relative to future relationships between MLPs and the7
state of Louisiana; and to provide a report of its findings and recommendations to the8
Senate's Revenue and Fiscal Affairs Committee prior to the opening of the 20139
Regular Session.10
WHEREAS, "master limited partnerships" are capital intensive businesses engaged11
in oil and gas production, transportation, processing, and mining as well as other initiatives12
involving natural resources; and13
WHEREAS, currently approximately one hundred MLPs trade on the national stock14
exchanges each day of which thirty-nine own or operate assets within the state of Louisiana;15
and16
WHEREAS, because the unique business model of MLPs, presents a challenge in17
complying with tax laws in many states, including Louisiana, particularly the requirements18 SR NO. 180
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regarding withholdings; and1
WHEREAS, Louisiana's recent change from its longtime position of exempting2
MLPs is now no longer in alignment with the Multistate Tax Commission which3
recommends excluding MLPs from withholding through their formal model statute4
addressing the issue; and5
WHEREAS, more than thirty states have excluded MLPs from their withholding6
requirements through legislation, regulations, or both; and7
WHEREAS, the United States Congress has recognized MLPs as a special structure8
that enables entities to raise and utilize substantial amounts of capital investment to develop9
energy resources; and10
WHEREAS, the development of energy resources is a very important industry to11
Louisiana's economy.12
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana13
does hereby urge and request the Department of Revenue to develop a plan which will14
encourage and foster the use of "master limited partnerships (MLPs)" investments in the15
state of Louisiana; to reconsider the department's current position on denying MLP's16
exemptions relative to composite returns and withholding requirements; to request that the17
department and representatives of the MLP community study Louisiana revenue laws, rules,18
and regulations to develop recommendations relative to future relationships between MLPs19
and the state of Louisiana; and to provide a report of its findings and recommendations to20
the Senate's Revenue and Fiscal Affairs Committee at least forty-five days prior to the21
opening of the 2013 Regular Session.22
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the23
secretary of the Department of Revenue.24
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Ann S. Brown.
DIGEST
Morrell SR No.
Requests the Department of Revenue to develop a plan which will encourage and foster the
use of "master limited partnerships (MLP)" investments in the state of Louisiana.
Requests that the Department of Revenue reconsider its position on denying MLP's SR NO. 180
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exemptions relative to composite returns and withholding requirements.
Requests that the department and representatives of the MLP community study Louisiana
revenue laws, rules, and regulations relative to future relationships between MLPs and the
state of Louisiana.
Requires that the department submit a report of its findings and recommendations to the
Senate's Revenue and Fiscal Affairs Committee 45 days prior to the opening of the 2013
Regular Session of the Legislature.