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Regular Session, 2013
SENATE BILL NO. 177
BY SENATOR RISER
TAX/TAXATION. Creates the Rapid Response to Declared Disasters Income Tax Exclusion
Act to exclude from gross income certain monies received for services rendered by
nonresidents during a declared disaster or emergency. (gov sig)
AN ACT1
To amend and reenact R.S. 47:242 and 287.67(1)(g), (h), and (2) and to enact R.S. 47:53.52
and 111(A)(11), relative to gross income; to exclude from gross income certain3
monies received by nonresident individuals and corporations for services rendered4
in response to a declared disaster or emergency; to provide for definitions; to provide5
for an effective date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. This Act shall be known as and may be cited as the "Rapid Response to8
Declared Disasters Income Tax Exclusion Act".9
Section 2. R.S. 47:242 and 287.67(1)(g), (h), and (2) are hereby amended and10
reenacted and R.S. 47:53.5 and 111(A)(11) are hereby enacted to read as follows:11
§53.5. Exclusions from gross income tax; compensation for disaster services12
A. Definitions. For purposes of this Section, the following terms shall13
have the following meanings:14
(1) "Registered business in the state" means a business entity that is15
currently registered to do business in the state and was registered prior to a16
declared state of emergency.17 SB NO. 177
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(2)(a) "Nonresident business" means a business entity whose services are1
requested by a registered business in the state or by a state or local government2
for purposes of performing disaster or emergency related work in the state and3
that prior to the declared state of emergency:4
(i) Is not qualified or registered to do business in this state.5
(ii) Has no employees, agents or independent contractors in this state.6
(iii) Is not transacting business in this state.7
(iv) Has not filed and is not required to file any state or local tax return8
in this state.9
(b) For purposes of this Paragraph, "nonresident business" shall include10
a business entity that is affiliated with a registered business in this state solely11
through common ownership.12
(3) "Out-of-state employee" means a nonresident individual who does13
not provide services or activities in this state, except for disaster or emergency14
related work during a disaster period.15
(4) "Infrastructure" means property and equipment owned or used by16
communications networks, electric generation, transmission and distribution17
systems, gas distribution systems, water pipelines, and public roads and bridges18
and related support facilities that services multiple customers or citizens19
including but not limited to real and personal property such as buildings,20
offices, lines, poles, pipes, structures and equipment.21
(5) "Declared state disaster or emergency" means a disaster or22
emergency event declared by any of the following:23
(a) A disaster or emergency has been declared by executive order or24
proclamation by the governor pursuant to Chapter 6 of Title 29 of the Louisiana25
Revised Statutes of 1950.26
(b) A disaster or emergency for which a federal declaration of disaster27
or emergency has been issued by the president.28
(c) An event within the state for which a good faith response is required29 SB NO. 177
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and for which a registered business notifies the governor or appropriate local1
official of the event and the governor or local official declares a disaster or2
emergency under Chapter 6 of Title 29 of the Louisiana Revised Statues of 1950.3
(6) "Disaster period" means a period that begins within ten days of the4
first day of the governor's proclamation, the president's declaration or5
designation by any other authorized official of the state, as set forth in this6
Section, whichever occurs first, and that extends for a period of sixty calendar7
days after the end of the declared disaster or emergency period, or any longer8
period authorized by the designated state official or agency.9
(7) "Disaster or emergency-related work" means repairing, renovating,10
installing, building, rendering services or other business activities that relate to11
infrastructure that has been damaged, impaired or destroyed by the declared12
disaster or emergency.13
B.(1) A nonresident business that conducts operations within the state for14
purposes of performing work or services related to a declared state disaster or15
emergency during the disaster period shall not be considered to have established16
a level of presence that would require that business to register, file and/or remit17
the taxes imposed by Chapter 1 of Subtitle II of this Title. All income of the18
nonresident business that is conducted in this state pursuant to this Section shall19
be excluded from gross income and from any filing requirements for such tax.20
(2) Any out-of-state employee as defined in this Section shall not be21
considered to have established residency or a presence in the state that would22
require that person or that person's employer to file and pay income taxes or23
to be subjected to tax withholdings or to file and pay any other state or local tax24
or fee during the disaster period. This includes any related state or local25
employer withholding and remittance obligations.26
C. Nonresident businesses and out-of-state employees shall be required27
to pay transaction taxes and fees including but not limited to fuel taxes or sales28
and use taxes on materials or services subject to sales and use tax, hotel taxes,29 SB NO. 177
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car rental taxes or fees that the nonresident business or out-of-state employee1
purchases for use or consumption in the state during the disaster period, unless2
such taxes are otherwise exempted during a disaster period.3
D. Any nonresident business or out-of-state employee that remains in the4
state after the disaster period will become subject to the state's normal5
standards for establishing presence, residency or doing business in the state and6
will therefore become responsible for any business or employee tax7
requirements that ensue.8
E. The secretary of the Department of Revenue may promulgate9
necessary rules and regulations, develop and issue forms or online processes to10
implement the provisions of this Section all in accordance with the11
Administrative Procedure Act.12
* * *13
§111. Definitions14
A. Wages. For purposes of this Subpart the term "wages" means all15
remuneration (other than fees paid to a public official) for services performed by an16
employee for his employer, including the cash value of all remuneration paid in any17
medium other than cash; except that such term shall not include remuneration paid:18
* * *19
(11) for services by a nonresident individual during a declared state of20
emergency as provided in R.S. 47:53.5.21
* * *22
§242. Segregation of items of gross income23
All items of gross income, not otherwise exempted in this Chapter, shall be24
segregated into two general classes.25
(1) The class of gross income to be designated as "allocable income" shall26
include only the following:27
* * *28
(g) salaries, wages or other compensation received by a nonresident29 SB NO. 177
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individual for personal services; notwithstanding any other provision of law to the1
contrary, salaries, wages and other compensation received by a nonresident2
individual for personal services rendered during a declared disaster as defined3
in R.S. 47:53.5 shall not be an item of gross allocable income.4
(h) income from construction, repair, or other similar services.5
Notwithstanding any other provision of law to the contrary, income from6
construction, repair, or other similar services received by a nonresident7
corporation for disaster or emergency related work rendered during a declared8
disaster as defined in R.S. 47:53.5 shall not be an item of gross allocable income.9
(2) The class of income to be designated as "apportionable income" shall10
include all items of gross income which are not properly includible in allocable11
income as defined in this Section. Notwithstanding any other provision of law to12
the contrary, salaries, wages and other compensation received by a nonresident13
individual for personal services rendered during a declared disaster and income14
from construction, repair, or other similar services received by a nonresident15
corporation for disaster or emergency related work rendered during a declared16
disaster as defined in R.S. 47:53.5 shall not be an item of gross apportionable17
income.18
* * *19
§287.67. Louisiana net income defined20
"Louisiana net income" means net income which is earned within or derived21
from sources within the state of Louisiana. However, Louisiana net income shall22
not include income received by a nonresident corporation for construction,23
repair, or other similar services for disaster or emergency related work24
rendered during a declared disaster as defined in R.S. 47:53.5.25
Section 3. The provisions of this Act shall be applicable to all tax years beginning26
on and after January 1, 2013.27
Section 4. This Act shall become effective upon signature by the governor or, if not28
signed by the governor, upon expiration of the time for bills to become law without signature29 SB NO. 177
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by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If1
vetoed by the governor and subsequently approved by the legislature, this Act shall become2
effective on the day following such approval.3
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Danielle Doiron.
DIGEST
Proposed law establishes the Rapid Response to Declared Disasters Income Tax Exclusion
Act to exclude from gross income certain monies received for services rendered by
nonresidents in response to a disaster or emergency.
Proposed law defines the following terms:
(1)"Registered business in the state" means a business entity that is currently registered
to do business in the state and was registered prior to a declared state of emergency.
(2)"Nonresident business" means a business entity whose services are requested by a
registered business in the state or by a state or local government for purposes of
performing disaster or emergency related work in the state and that prior to the
declared state of emergency:
(a)Is not qualified or registered to do business in this state;
(b)Has no employees, agents or independent contractors in this state;
(c)Is not transacting business in this state; and
(d)Has not filed and is not required to file any state or local tax return in this
state.
Provides that a "nonresident business" includes a business entity that is affiliated with a
registered business in this state solely through common ownership.
(3)"Out-of-state employee" means a nonresident individual who does not provide
services or activities in this state, except for disaster or emergency related work
during a disaster period.
(4)"Infrastructure" means property and equipment owned or used by communications
networks, electric generation, transmission and distribution systems, gas distribution
systems, water pipelines, and public roads and bridges and related support facilities
that services multiple customers or citizens including but not limited to real and
personal property such as buildings, offices, lines, poles, pipes, structures and
equipment.
(5)"Declared state disaster or emergency" means a disaster or emergency event declared
by any of the following:
(a)A disaster or emergency has been declared by executive order or
proclamation by the governor.
(b) A disaster or emergency for which a federal declaration of disaster or
emergency has been issued by the president. SB NO. 177
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(c)An event within the state for which a good faith response is required and for
which a registered business notifies the governor or appropriate local official
of the event and the governor or local official declares a disaster or
emergency as provided by law.
(6)"Disaster period" means a period that begins within ten days of the first day of the
governor's proclamation, the president's declaration or designation by any other
authorized official of the state whichever occurs first, and that extends for a period
of 60 calendar days after the end of the declared disaster or emergency period, or any
longer period authorized by the designated state official or agency.
(7)"Disaster or emergency-related work" means repairing, renovating, installing,
building, rendering services or other business activities that relate to infrastructure
that has been damaged, impaired or destroyed by the declared disaster or emergency.
Proposed law requires that operations of a "nonresident business" conducted in the state for
work or services related to a declared state disaster or emergency shall not be considered
to have a level of presence that would require it to register or remit taxes to the department
as required by law and excludes income derived from such operations from gross income.
Proposed law requires that "out-of-state-employees" not be considered to have established
residency or presence in the state that would require that person or person's employer to file
and pay income taxes or be subjected to tax withholdings or to file and pay any other state
or local tax or fee during the disaster period, including any related state or local employer
withholding and remittance obligations.
Proposed law provides that "nonresident businesses" and "out-of-state employees" shall be
required to pay transaction taxes and fees including but not limited to fuel taxes or sales and
use taxes on materials or services subject to sales and use tax, hotel taxes, car rental taxes
or fees that the nonresident business or out-of-state employee purchases for use or
consumption in the state during the disaster period, unless such taxes are otherwise exempted
during a disaster period.
Proposed law provides that any "nonresident business" or "out-of-state employee" that
remains in the state after the disaster period will become subject to the state's normal
standards for establishing presence, residency, or doing business in the state and will
therefore become responsible for any business or employee tax requirements that ensue.
Proposed law authorizes the secretary of the Department of Revenue to promulgate
necessary rules and regulations, develop and issue forms or online processes to implement
the tax credit program.
Present law provides for definitions for "wages" with regard to the income tax for services
performed by an employee for his employer, including the cash value of all remuneration
paid in any medium other than cash and provides for terms excluded from remuneration.
Proposed law retains present law and adds an exclusion for services by a nonresident
individual during or in response to a declared state of emergency.
Present law provides for a class of gross income designated as "allocable income".
Proposed law excludes salaries, wages and other compensation received by a "nonresident
individual" for personal services rendered during a declared disaster from gross "allocable
income".
Proposed law excludes income from construction, repair, or other similar services received
by a "nonresident corporation" for disaster or emergency related work rendered during a
declared disaster from gross "allocable income". SB NO. 177
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words in boldface type and underscored are additions.
Present law provides for a class of gross income designated as "apportionable income".
Proposed law excludes salaries, wages and other compensation received by a nonresident
individual for personal services rendered during a declared disaster and income from
construction, repair, or other similar services received by a nonresident corporation for
disaster or emergency related work rendered during a declared disaster from gross
"apportionable income".
Proposed law provides that the definition of "Louisiana net income" does not include income
received by a "nonresident corporation" for construction, repair, or other similar services for
disaster or emergency related work rendered during a declared disaster.
Proposed law is applicable to all tax years beginning on or after January 1, 2013.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:242 and 287.67(1)(g), (h), and (2); adds R.S. 47:53.5 and 111(A)(11))