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Regular Session, 2013
HOUSE BILL NO. 700
BY REPRESENTATIVE LEGER
TAX/CORP INCOME: Provides relative to the state tax levied on corporations
AN ACT1
To amend and reenact R.S. 47:31, 103(A), 120.31(A)(1)(introductory paragraph), the2
heading of Subpart F of Part II of Chapter 2 of Subtitle II of Title 47 of the Louisiana3
Revised Statutes of 1950 and 241 and to repeal R.S. 47:32(C), 287.2, 287.11, 287.12,4
and 601, relative to corporate taxes; to provide with respect to corporate income and5
franchise taxes; to repeal the corporate income and franchise taxes; to provide for6
effectiveness; and to provide for related matters.7
Be it enacted by the Legislature of Louisiana:8
Section 1. R.S. 47:31, 103(A), 120.31(A)(1)(introductory paragraph), the heading9
of Subpart F of Part II of Chapter 2 of Subtitle II of Title 47 of the Louisiana Revised10
Statutes of 1950 and 241 are hereby amended and reenacted to read as follows:11
§31. Individuals, corporations and trusts subject to tax 12
There shall be levied, collected, and paid for each taxable year a tax upon the13
net income of residents and nonresidents and estates, trusts and corporations, as14
hereinafter provided. 15
(1) Resident individuals. Every person residing within the state, or the16
personal representative in the event of death, shall pay a tax on net income from17
whatever source derived, except as hereinafter exempted.18
Every natural person domiciled in the state, and every other natural person19
who maintains a permanent place of abode within the state or who spends in the20 HLS 13RS-1458 ORIGINAL
HB NO. 700
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aggregate more than six months of the taxable year within the state, shall be deemed1
to be a resident of this state for the purpose of determining liability for income taxes2
under this Chapter. 3
(2) Nonresident individuals. Every nonresident shall pay a tax upon such net4
income as is derived from property located, or from services rendered, or from5
business transacted within the state, or from sources within the state, except as6
hereinafter exempted. 7
(3) Corporations. Corporations shall be taxed on net income from sources8
within the state, as hereinafter set out. 9
(4) Domestic real estate investment trusts. Trusts shall be taxed on net10
income from whatever source derived, except as otherwise exempted. 11
(5) Foreign real estate investment trusts. Foreign real estate investment12
trusts shall be taxed on net income from sources within the state, as hereinafter set13
out. 14
* * *15
§103. Time and place for filing returns; information concerning federal return 16
A. Time and place for filing returns. (1) Corporation income tax returns.17
Returns for corporations on the basis of the calendar year shall be made and filed18
with the secretary at Baton Rouge, Louisiana, on or before the fifteenth day of April,19
following the close of the calendar year. Returns for corporations made on the basis20
of a fiscal year shall be made and filed with the secretary at Baton Rouge, Louisiana,21
on or before the fifteenth day of the fourth month following the close of the fiscal22
year.23
(2) Other income tax returns. Returns other than corporation returns made24
on the basis of the calendar year shall be made and filed with the secretary at Baton25
Rouge, Louisiana, on or before the fifteenth day of May, following the close of the26
calendar year. Returns other than corporation returns made on the basis of a fiscal27
year shall be made and filed with the secretary at Baton Rouge, Louisiana, on or28
before the fifteenth day of the fifth month following the close of the fiscal year.29 HLS 13RS-1458 ORIGINAL
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(3) In the event that the date on which returns shall be filed falls on Saturday,1
Sunday, or a legal holiday, the return shall be made and filed on the next business2
day.3
* * *4
§120.31. Individual and corporate tax checkoffs for donations to the Louisiana5
Military Family Assistance Fund6
A.(1) For tax years beginning on and after January 1, 2005, every individual7
and corporation that files an individual income tax return or a corporate income or8
franchise tax return is authorized to do any of the following:9
* * *10
SUBPART F. NONRESIDENT INDIVIDUALS11
AND CORPORATIONS12
§241. Net income subject to tax 13
The net income of a nonresident individual or a corporation subject to the tax14
imposed by this Chapter shall be the sum of the net allocable income earned within15
or derived from sources within this state, as defined in R.S. 47:243, and the net16
apportionable income derived from sources in this state, as defined in R.S. 47:244,17
less the amount of federal income taxes attributable to the net allocable income and18
net apportionable income derived from sources in this state. The amount of federal19
income taxes to be so deducted shall be that portion of the total federal income tax20
which is levied with respect to the particular income derived from sources in this21
state to be computed in accordance with rules and regulations of the collector22
secretary of revenue. Proper adjustment shall be made for the actual tax rates23
applying to different classes of income and for all differences in the computation of24
net income for purposes of federal income taxation as compared to the computation25
of net income under this Chapter. Where the allocation of the tax is to be based on26
a ratio of the amount of net income of a particular class, both the numerator and the27
denominator of the fraction used in determining the ratio shall be computed on the28
basis that such net income is determined for federal income tax purposes.29 HLS 13RS-1458 ORIGINAL
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Section 2. R.S. 47:32(C), 287.2, 287.11, 287.12, and 601 are hereby repealed in their1
entirety.2
Section 3. This Act shall take effect on January 1, 2014.3
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)