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Regular Session, 2012 ENROLLED
SENATE RESOLUTION NO. 180
BY SENATOR MORRELL
A RESOLUTION
To urge and request 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; to reconsider the department's position on denying MLPs exemptions
relative to composite returns and withholding requirements; to request 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; and to provide a report of its findings and recommendations to the
Senate's Revenue and Fiscal Affairs Committee prior to the opening of the 2013
Regular Session.
WHEREAS, "master limited partnerships" are capital intensive businesses engaged
in oil and gas production, transportation, processing, and mining as well as other initiatives
involving natural resources; and
WHEREAS, currently approximately one hundred MLPs trade on the national stock
exchanges each day of which thirty-nine own or operate assets within the state of Louisiana;
and
WHEREAS, because the unique business model of MLPs, presents a challenge in
complying with tax laws in many states, including Louisiana, particularly the requirements
regarding withholdings; and
WHEREAS, Louisiana's recent change from its longtime position of exempting
MLPs is now no longer in alignment with the Multistate Tax Commission which
recommends excluding MLPs from withholding through their formal model statute
addressing the issue; and
WHEREAS, more than thirty states have excluded MLPs from their withholding
requirements through legislation, regulations, or both; and SR NO. 180 ENROLLED
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WHEREAS, the United States Congress has recognized MLPs as a special structure
that enables entities to raise and utilize substantial amounts of capital investment to develop
energy resources; and
WHEREAS, the development of energy resources is a very important industry to
Louisiana's economy.
THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby urge and request the Department of Revenue to develop a plan which will
encourage and foster the use of "master limited partnerships (MLPs)" investments in the
state of Louisiana; to reconsider the department's current position on denying MLP's
exemptions relative to composite returns and withholding requirements; to request that the
department and representatives of the MLP community study Louisiana revenue laws, rules,
and regulations to develop recommendations relative to future relationships between MLPs
and the state of Louisiana; and to provide a report of its findings and recommendations to
the Senate's Revenue and Fiscal Affairs Committee at least forty-five days prior to the
opening of the 2013 Regular Session.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
secretary of the Department of Revenue.
PRESIDENT OF THE SENATE