HLSX 14RS-1085 REENGROSSED
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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 is repealed, the Louisiana14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 provide a commensurate level of tax relief to banks paying tax15
under the provisions of this Section, while identifying a revenue source to meet the16
obligations of local governments to provide necessary services.17
(2) Any action taken by the Louisiana Legislature to comply with the18
provisions of this Subsection shall not result in banks being subject to any new tax,19
fee, or charge that is not applicable to other corporations in the state.20 HLSX 14RS-1085 REENGROSSED
HB NO. 465
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are additions.
(3) For purposes of this Subsection, "banks" or a "bank" means a Federal1
Deposit Insurance Corporation insured institution that is subject to taxation under2
this Section.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)]
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bank stock if the corporation income tax is repealed.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.
Proposed law retains present law and provides for legislative findings regarding the ad
valorem taxation of bank shares in lieu of a bank paying corporation income tax.
Proposed law provides that if the corporation income tax is repealed, the La. Legislature is
required to provide a commensurate level of tax relief to banks paying ad valorem tax under
present law, while also identifying a revenue source to meet the obligations of local
governments to provide necessary services.
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))
Summary of Amendments Adopted by House
Committee Amendments Proposed by House Committee on Ways and Means to the
original bill.
1. Deleted requirements that if the corporation income tax is repealed, the state
would either incur specific obligations relative to the ad valorem tax on bank
stock, or the ad valorem tax on bank stock would be repealed.
2. Added a requirement that the La. Legislature provide a commensurate level of
tax relief to banks relative to ad valorem tax as is afforded to other businesses if
the corporation income tax is repealed.
House Floor Amendments to the engrossed bill.
1. With respect to prospective actions of the legislature if the corporation income
tax is repealed, specifically regarding the balancing of ad valorem tax relief for
banks with consideration of the obligations of local government to provide
services, specified that the legislature shall identify a revenue source for local
government in such case.