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)]
Leger HB No. 700
Abstract: Repeals the levy and imposition of the corporate income and corporation franchise
taxes.
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 repeals present law.
Present law 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 at the rate of $3 for each
$1,000 exceeding $300,000 of taxable capital.
Present law defines "taxable capital", "capital stock", and "surplus and undivided profits" for
purposes of levying the tax. Further provides for a general allocation formula relative to
allocation of taxable capital and for certain exemptions from the tax.
Proposed law repeals present law.
Effective Jan. 1, 2014.
(Amends R.S. 47:31, 103(A), 120.31(A)(1)(intro. para.), the heading of Subpart F of Part II of
Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950 and 241; Repeals
R.S. 47:32(C), 287.2, 287.11, 287.12, and 601)