HLSX 14RS-1085 ORIGINAL
Page 1 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
Regular Session, 2014
HOUSE BILL NO. 465
BY REPRESENTATIVE BROADWATER
TAX/AD VALOREM TAX: Provides with respect to ad valorem taxes on shares of bank
stock
AN ACT1
To enact R.S. 47:1967(H), relative to ad valorem tax; to provide with respect to ad valorem2
taxes imposed on certain shares of bank stock; to provide for requirements of the3
Louisiana Legislature; and to provide for related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:1967(H) is hereby enacted to read as follows: 6
ยง1967. Listing and assessment of bank stock; procedure7
* * *8
H.(1) It is the will of the Louisiana Legislature to ensure that Louisiana9
banks do not become the only corporations in the state subject to a corporate tax.10
Currently, the corporate tax paid by banks is the tax on bank stock provided for in11
this Section, which is paid in lieu of payment of state corporate income taxes12
pursuant to R.S. 47:287.11 et seq. Therefore, if state corporate income tax for13
corporations other than banks under R.S. 47:287.11 et seq. is repealed, the Louisiana14
Legislature shall do one of the following:15
(a) Obligate the state to provide full reimbursement to all banks paying tax16
under the provisions of this Section. Full reimbursement under this Subsection may17
be accomplished either by direct payment made by the state to the bank or through18
state tax credits issued to the bank.19 HLSX 14RS-1085 ORIGINAL
HB NO. 465
Page 2 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(b) Obligate the state to pay local governments directly for the full amount1
of taxes collectible under the provisions of this Section, in lieu of banks paying the2
taxes.3
(c) Repeal the tax on bank stock provided under this Section.4
(d) Adopt any other arrangement agreed to by the state and local government5
that is applicable to all parishes and results in any of the following regarding the tax6
on bank stock: (i) banks not paying the tax; (ii) banks receiving full reimbursement7
for the amount of tax paid; or (iii) repeal of the tax.8
(2) Any action taken by the Louisiana Legislature to comply with the9
provisions of this Subsection shall not result in banks being subject to any new tax,10
fee, or charge that is not applicable to other corporations in the state.11
(3) For purposes of this Subsection, "banks" or a "bank" means a Federal12
Deposit Insurance Corporation insured institution that is subject to taxation under13
this Section.14
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)]
Broadwater HB No. 465
Abstract: Requires certain action by the legislature regarding ad valorem tax on shares of
bank stock if the corporation income tax is repealed.
Present law provides that shares of stock of all banks, banking companies, firms,
associations, or corporations, doing a banking business in this state, chartered by the laws
of this state, any other state, or of the U.S. or chartered under the laws of another country
(bank stock) are subject to ad valorem tax. The tax rate is 15% of fair market value. The
value is based on stockholder equity capital. Present law further provides for specific
criteria and elements to be included and excluded in the consideration of the fair market
value of bank stock.
Proposed law retains present law and provides for legislative findings regarding the ad
valorem tax on bank shares in lieu of a bank paying state corporation income tax.
Proposed law provides for specific requirements of the La. Legislature regarding the tax
treatment of bank shares if the state corporation income tax is repealed. The La. Legislature
is required to do one of the following:
(1)Obligate the state to reimburse all banks for payment of ad valorem tax. HLSX 14RS-1085 ORIGINAL
HB NO. 465
Page 3 of 3
CODING: Words in struck through type are deletions from existing law; words underscored
are additions.
(2)Obligate the state to pay local governments directly for the full amount of taxes owed
for bank shares as provided in present law.
(3)Repeal the tax on bank stock provided for under proposed law.
(4)Adopt any other arrangement agreed to by the state and local governments that is
applicable to all parishes and results in any of the following regarding the ad valorem
tax on bank stock:
(a)An exemption from ad valorem tax for bank shares.
(b)Full reimbursement of banks for ad valorem taxes paid.
(c)Repeal of the banks shares tax provided for in present law.
Proposed law provides that no action taken by the La. Legislature to comply with the
provisions of proposed law may result in banks being subject to any new tax, fee, or charge
that is not applicable to other corporations in the state.
(Adds R.S. 47:1967(H))