HLS 13RS-1082 ORIGINAL
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Regular Session, 2013
HOUSE BILL NO. 626
BY REPRESENTATIVE KATRINA JACKSON
TAX/CORP INCOME: Reduces the rate for corporate income tax and repeals corporate
franchise taxes and federal deductions allowed on net state corporate income tax
AN ACT1
To amend and reenact R.S. 47:32(C) and 287.12 and to repeal R.S. 47:287.79, 287.85, and2
Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950,3
comprised of R.S. 47:601 through 618, relative to corporation income tax; to provide4
relative to the rate of the corporation income tax; to reduce the rates of such tax; to5
repeal federal income tax deduction on net state corporate income; to repeal6
corporation franchise taxes; to provide for effectiveness; and to provide for related7
matters.8
Be it enacted by the Legislature of Louisiana:9
Section 1. R.S. 47:32(C) and 287.12 are hereby amended and reenacted to read as10
follows: 11
§32. Rates of tax12
* * *13
C. On corporations. The tax to be assessed, levied, collected, and paid upon14
the net income of every corporation shall be computed at the rate of:15
(1) Four percentum Three percent upon the first twenty-five thousand dollars16
of net income.17
(2) Five percentum Four percent upon the amount of net income above18
twenty-five thousand dollars but not in excess of fifty thousand dollars.19 HLS 13RS-1082 ORIGINAL
HB NO. 626
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(3) Six percentum Five percent on the amount of net income above fifty1
thousand dollars but not in excess of one hundred thousand dollars.2
(4) Seven percentum Six percent on the amount of net income above one3
hundred thousand dollars but not in excess of two hundred thousand dollars.4
(5) Eight percentum Seven percent on all net income in excess of two5
hundred thousand dollars.6
* * *7
§287.12. Rates of tax 8
The tax to be assessed, levied, collected, and paid upon the Louisiana taxable9
income of every corporation shall be computed at the rate of: 10
(1) Four Three percent upon the first twenty-five thousand dollars of11
Louisiana taxable income. 12
(2) Five Four percent upon the amount of Louisiana taxable income above13
twenty-five thousand dollars but not in excess of fifty thousand dollars. 14
(3) Six Five percent on the amount of Louisiana taxable income above fifty15
thousand dollars but not in excess of one hundred thousand dollars. 16
(4) Seven Six percent on the amount of Louisiana taxable income above one17
hundred thousand dollars but not in excess of two hundred thousand dollars. 18
(5) Eight Seven percent on all Louisiana taxable income in excess of two19
hundred thousand dollars. 20
Section 2. R.S. 47:287.79, 287.85, and Chapter 5 of Subtitle II of Title 47 of the21
Louisiana Revised Statutes of 1950, comprised of R.S. 47:601 through 618, are hereby22
repealed in thier entirety.23
Section 3. This Act shall become effective on January 1, 2014, and shall be24
applicable to all tax years beginning on and after January 1, 2014.25 HLS 13RS-1082 ORIGINAL
HB NO. 626
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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)]
Katrina Jackson HB No. 626
Abstract: Reduces the rate of tax on the taxable income of corporations in La. and repeals
the corporate franchise tax and federal deductions allowed on net state corporate
income tax.
CORPORATE INCOME TAX
Present law provides that the tax to be assessed, levied, collected, and paid on the La. taxable
income of every corporation shall be computed at the following rates:
(1)4% on the first $25,000 of La. taxable income.
(2)5% on La. taxable income above $25,000 but not in excess of $50,000.
(3)6% on La. taxable income above $50,000 but not in excess of $100,000.
(4)7% on La. taxable income above $100,000 but not in excess of $200,000.
(5)8% on all La. taxable income in excess of $200,000.
Proposed law reduces the present law rates for the tax on the taxable income of corporations
to the following:
(1)3% on the first $25,000 of La. taxable income.
(2)4% on La. taxable income above $25,000 but not in excess of $50,000.
(3)5% on La. taxable income above $50,000 but not in excess of $100,000.
(4)6% on La. taxable income above $100,000 but not in excess of $200,000.
(5)7% on all La. taxable income in excess of $200,000.
Present law provides corporations certain allowable deductions of federal income taxes paid.
Proposed law repeals the allowable federal deductions in present law.
CORPORATE FRANCHISE TAX
Present law provides for the imposition of corporation franchise tax which requires every
domestic corporation and every foreign corporation, exercising its charter, or qualified to
do business or actually doing business in this state, or owning or using any part or all of
its capital, plant, or any other property in this state, to pay an annual tax at the rate of
$1.50 for each $1,000 on the first $300,000 of taxable capital and $3 for each $1,000
which exceeds $300,000 of taxable capital. Present law defines "taxable capital",
"capital stock", and "surplus and undivided profits" for purposes of the corporation
franchise tax, provides for a formula for the allocation of taxable capital, provides for
exemptions, and provides for the due date, payment, and reporting of the tax.
Proposed law repeals present law relative to the imposition of a corporation franchise tax. HLS 13RS-1082 ORIGINAL
HB NO. 626
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Effective Jan. 1, 2014, and applicable to all tax years beginning on and after Jan. 1, 2014.
(Amends R.S. 47:32(C) and 287.12; Repeals R.S. 47:287.79, 287.85, and 601-618)