HLS 13RS-589 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 347
BY REPRESENTATIVE TALBOT
TAX CREDITS: Repeals the La. income and franchise tax credit for ad valorem taxes paid
to political subdivisions on inventory held by certain taxpayers
AN ACT1
To repeal R.S. 47:6006, relative to Louisiana income and corporation franchise taxes; to2
provide relative to tax credits allowed on Louisiana income and corporation3
franchise taxes; to repeal the tax credit for ad valorem taxes paid to political4
subdivisions on certain inventory by certain taxpayers; and to provide for5
effectiveness.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:6006 is hereby repealed in its entirety.8
Section 2. This Act shall take effect and become operative if and when the proposed9
amendment of Article VII, Section 21 of the Constitution of Louisiana contained in the Act10
which originated as House Bill No. ___ of this 2013 Regular Session of the Legislature is11
adopted at a statewide election and becomes effective.12
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Talbot HB No. 347
Abstract: Repeals the La. income and corporation franchise tax credit for ad valorem taxes
paid to political subdivisions on inventory held by certain taxpayers.
Present constitution requires property subject to ad valorem taxation to be listed on tax rolls
at its assessed value which is a percentage of the property's fair market value. Further
provides for the classification of property subject to ad valorem taxation. Inventory held by
manufacturers, distributors, and retailers is assessed at 15% of its fair market value. HLS 13RS-589 ORIGINAL
HB NO. 347
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Present law provides for a refundable tax credit against any La. income or corporation
franchise tax for ad valorem taxes paid to political subdivisions on inventory held by
manufacturers, distributors, and retailers and on natural gas held, used, or consumed in
providing natural gas storage services or operating natural gas storage facilities. Further
requires the secretary to pay refunds from the current collections of income and corporation
franchise taxes.
Present law defines a "manufacturer" as a person engaged in the business of working raw
materials into wares suitable for use or which gives new shapes, qualities, or combinations
to matter which has gone through some artificial process. A "distributor" is defined as a
person engaged in the sale of products for resale or further processing for resale and a
"retailer" is defined as a person engaged in the sale of products to the ultimate consumer.
Present law provides that the amount of the credit shall be equal to 100% of the inventory
taxes paid to a political subdivision.
Proposed law repeals present law.
Effective if and when the proposed amendment of Const. Art. VII, ยง21 contained in the Act
which originated as House Bill No. ___ of this 2013 R.S. is adopted at a statewide election
and becomes effective.
(Repeals R.S. 47:6006)