HLS 15RS-1218 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 729
BY REPRESENTATIVE LEGER
TAX/TAXATION: Phases out inventory tax credits
1 AN ACT
2To amend and reenact R.S. 47:6006(D)(5) and to enact R.S. 47:6006(D)(6) through (10);
3 relative to income and corporation franchise tax credits; to provide for the tax credit
4 for ad valorem taxes paid on inventory; to phase out the amount of the credit over a
5 certain period of time; to provide for an effective date; and to provide for related
6 matters.
7Be it enacted by the Legislature of Louisiana:
8 Section 1. R.S. 47:6006(D)(5) is hereby amended and reenacted and R.S.
947:6006(D)(6) through (10) are hereby enacted to read as follows:
10 ยง6006. Tax credits for local inventory taxes paid
11 * * *
12 D.
13 * * *
14 (5) For inventory taxes paid to political subdivisions on or after July 1, 1996,
15 and before June 30, 2015, the credit shall be one hundred percent of such taxes paid.
16 (6) Beginning July 1, 2015, for inventory taxes paid to political subdivisions
17 for calendar year 2016, the credit shall be eighty percent of such taxes paid.
18 (7) For inventory taxes paid to political subdivisions for calendar year 2017,
19 the credit shall be sixty percent of such taxes paid.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1218 ORIGINAL
HB NO. 729
1 (8) For inventory taxes paid to political subdivisions for calendar year 2018,
2 the credit shall be forty percent of such taxes paid.
3 (9) For inventory taxes paid to political subdivisions for calendar year 2019,
4 the credit shall be twenty percent of such taxes paid.
5 (10) Beginning calendar year 2020, and every year thereafter, there shall be
6 no credit allowed pursuant to this Section.
7 Section 2. The provisions of this Act shall become effective on July 1, 2015, and
8shall be applicable for all tax years after such date.
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)]
HB 729 Original 2015 Regular Session Leger
Abstract: Phases out the tax credit for ad valorem taxes paid on inventory beginning with
taxes paid in calendar year 2016 by reducing the amount of the credit by 20% per
year over a five-year period until no credit is allowed.
Present law authorizes an income or corporation franchise tax credit for ad valorem taxes
paid to political subdivisions on inventory held by manufacturers, distributors, and retailers
and on certain natural gas. The amount of the credit is equal to 100% of taxes paid.
Proposed law reduces the amount of the allowable credit as follows:
(1) 80% of the inventory taxes paid for calendar year 2016.
(2) 60% of the inventory taxes paid for calendar year 2017.
(3) 40% of the inventory taxes paid for calendar year 2018.
(4) 20% of the inventory taxes paid for calendar year 2019.
Proposed law eliminates the inventory tax credit for taxes paid for calendar year 2020 and
each calendar year thereafter.
Effective July 1, 2015, applicable for all tax years after such date.
(Amends R.S. 47:6006(D)(5); Adds R.S. 47:6006(D)(6)-(10))
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.