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Prepared by Riley Boudreaux.
Broadwater HB No. 465
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
TAX/AD VALOREM TAX: Requires the legislature to provide commensurate relief to
banks paying a property tax on their shares of bank stock if the corporate income tax is
repealed or reduced and requires the legislature to identify a revenue source for local
government.
DIGEST
Present law exempts stocks from ad valorem property tax, except bank stocks.
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 millages are assessed on 15% of the fair market
value of the stock, which is based on stockholder equity capital.
Present law exempts from corporate income tax mutual savings banks, national banking
corporations and banking corporations organized under the laws of the state of Louisiana
who pay a tax for their shareholders or whose shareholders pay a tax on their shares of stock,
and building and loan associations.
Proposed law provides that if the corporation income tax is repealed or reduced, the La.
Legislature is required to provide a commensurate level of ad valorem property tax relief to
banks paying the share tax under present law, and must identify 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 Deleted requirements that if the corporation income tax is repealed, the state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stock, or the ad valorem tax on bank stock would be repealed.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corporation income tax is repealed.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. Page 2 of 2
Prepared by Riley Boudreaux.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the reengrossed bill
1. Also requires ad valorem property tax relief to banks paying the share tax if
corporate income tax is reduced.