HLS 15RS-1694 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 805
BY REPRESENTATIVE ADAMS
TAX CREDITS: Provides for the carry forward rather than the refund of the tax credits for
ad valorem taxes paid to local governments
1 AN ACT
2To amend and reenact R.S. 47:6006(A) and (B), 6006.1(C) and (D), and 6014(D) and (E)(2),
3 relative to income and corporation franchise tax credits; to provide with respect to
4 the tax credit for ad valorem taxes paid on inventory and certain natural gas; to
5 provide with respect to the tax credit for ad valorem taxes paid on certain offshore
6 vessels; to provide with respect to the tax credit for ad valorem taxes paid on certain
7 properties owned by telephone companies; to provide with respect to authorization
8 for issuance of refunds for tax credits which exceed taxpayer tax liability; to provide
9 for certain limitations; to provide for effectiveness; and to provide for related
10 matters.
11Be it enacted by the Legislature of Louisiana:
12 Section 1. R.S. 47:6006(A) and (B), 6006.1(C) and (D), and 6014(D) and (E)(2) are
13hereby amended and reenacted to read as follows:
14 §6006. Tax credits for local inventory taxes paid
15 A.(1) There shall be allowed a credit against any Louisiana income or
16 corporation franchise tax for ad valorem taxes paid to political subdivisions on
17 inventory held by manufacturers, distributors, and retailers and.
18 (2) There shall be allowed a credit against any Louisiana income or
19 corporation franchise tax for ad valorem taxes paid to political subdivisions on
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1 natural gas held, used, or consumed in providing natural gas storage services or
2 operating natural gas storage facilities.
3 B. Credit for taxes paid by corporations shall be applied to state corporate
4 income and corporation franchise taxes. Credit for taxes paid by unincorporated
5 persons shall be applied to state personal income taxes. The taxpayer shall be
6 entitled to a refund for any allowable credit which exceeds the aggregate tax liability
7 of the taxpayer for the taxes imposed by Chapter 1 and Chapter 5 of Subtitle II of
8 this Title. The secretary shall make such refund to the taxpayer in the amount to
9 which he is entitled from the current collections of the taxes collected pursuant to
10 Chapter 1 and Chapter 5 of such Subtitle II. If the amount of the credit authorized
11 pursuant to Subsection (A) of this Section exceeds the amount of tax liability for the
12 tax year, then any unused credit may be carried forward as a credit against
13 subsequent Louisiana income or corporation franchise tax liability for a period not
14 to exceed five years.
15 * * *
16 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental
17 Shelf Lands Act Waters
18 * * *
19 C. Notwithstanding any other provision of law to the contrary in Title 47 of
20 the Louisiana Revised Statutes of 1950, as amended, any excess of allowable credit
21 established by this Section over the aggregate tax liabilities against which such credit
22 can be applied, as provided in this Section, shall constitute an overpayment, as
23 defined in R.S. 47:1621(A), and the secretary shall make a refund of such
24 overpayment from the current collections of the taxes imposed by Chapter 1 or
25 Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, as
26 amended, together with interest as provided in R.S. 47:1624. The right to a credit
27 or refund of any such overpayment shall not be subject to the requirements of R.S.
28 47:1621(B). If the amount of the credit exceeds the amount of tax liability for the
29 tax year, then any unused credit may be carried forward as a credit against
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1 subsequent Louisiana income or corporation franchise tax liability for a period not
2 to exceed five years. All credits and refunds, together with interest thereon, must be
3 paid or disallowed within ninety days of receipt by the secretary, of any such claim
4 for refund or claim for a credit. Failure of the secretary to pay or disallow, in whole
5 or in part, any claim for a credit or a refund shall entitle the aggrieved taxpayer to
6 proceed with the remedies provided in R.S. 47:1625.
7 D.(1) For the purpose of allowing the credit or refund for ad valorem taxes
8 paid to political subdivisions as provided herein, the term "vessel" shall include
9 ships, oceangoing tugs, towboats, and barges. The term "Outer Continental Shelf
10 Lands Act Waters" as used herein shall have the meaning ascribed to it in R.S.
11 47:1702.
12 (2) The acceptance by the sheriff and ex officio tax collector of the ad
13 valorem taxes paid without protest by a taxpayer as certified under R.S. 47:1956(B)
14 shall conclusively establish: that such property was properly classified as a "vessel",
15 for purpose of this Section; that such vessel was "principally operated" in Outer
16 Continental Shelf Lands Act Waters during the applicable tax year; and that such
17 taxpayer shall be entitled to a credit or refund pursuant to this Section.
18 * * *
19 §6014. Credit for property taxes paid by certain telephone companies; fund
20 * * *
21 D. The excess, if any, of the credit allowed by this Section over the
22 aggregate tax liabilities against which such allowable credit may be applied, as
23 provided in this Section, shall constitute an overpayment, as defined in R.S.
24 47:1621(A), and the secretary shall make a refund of such overpayment from the
25 current collections of the taxes imposed under Chapter 2 of Subtitle II of this Title,
26 together with interest as provided in R.S. 47:1624. The right to a refund of any such
27 overpayment shall not be subject to the requirements of R.S. 47:1621(B). Any such
28 refund, together with interest thereon, shall be paid by the secretary within ninety
29 days of receipt by the secretary of the return on which the credit allowed by this
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1 Section is claimed. Failure of the secretary to pay such refund, in whole or in part,
2 shall entitle the aggrieved taxpayer to proceed with the remedies provided in R.S.
3 47:1625. If the amount of the credit exceeds the amount of tax liability for the tax
4 year, then any unused credit may be carried forward as a credit against subsequent
5 Louisiana income or corporation franchise tax liability for a period not to exceed five
6 years.
7 E.
8 * * *
9 (2) The monies in the fund shall be used solely and exclusively for the
10 purpose of providing funds to pay the credits or refunds as provided in this Section.
11 The treasurer shall annually transfer to the state general fund an amount equal to the
12 credits taken and refunds issued pursuant to this Section.
13 * * *
14 Section 2. The provisions of this Act shall be applicable to tax years beginning on
15or after January 1, 2015.
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 805 Original 2015 Regular Session Adams
Abstract: Changes the tax credit for ad valorem taxes paid on certain inventory, natural
gas, vessels in Outer Continental Shelf Lands Act Waters, and public service
property owned by telephone companies from refundable credits to credits in which
amounts of the credit above the tax liability may be carried forward and applied
against subsequent tax liability for up to five years.
Present law provides for 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 natural gas held or consumed in providing natural gas storage services or operating
natural gas storage facilities. The amount of the credit shall be equal to 100% of the taxes
paid to political subdivisions.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which
exceeds the aggregate tax liability of the taxpayer. Further requires the Dept. of Revenue
to refund the excess tax credit amount to the taxpayer from current tax collections.
Proposed law changes the tax credit from a refundable credit to one in which credit amounts
which exceed taxpayer liability may be carried forward against subsequent income or
corporation franchise tax liability for up to five years.
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HB NO. 805
Present law provides for a La. income or corporation franchise tax credit for ad valorem
taxes paid without protest to political subdivisions on vessels in Outer Continental Shelf
Lands Act Waters as certified to the assessor pursuant to present law within the calendar
year immediately preceding the taxable year of assessment of the vessel. The amount of the
credit shall be equal to 100% of the ad valorem taxes paid to political subdivisions.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which
exceeds the aggregate tax liability of the taxpayer. Further requires the Dept. of Revenue
to refund the excess tax credit amount to the taxpayer from current tax collections and to pay
or disallow claims for credits, refunds, and interest within 90 days of receiving a tax credit
or refund claim.
Proposed law changes the tax credit from a refundable credit to one in which credit amounts
which exceed taxpayer liability may be carried forward against subsequent income or
corporation franchise tax liability for up to five years. Proposed law removes references to
refunds and interest from the requirement that the secretary pay tax credit amounts within
one year of receipt of the tax credit claim.
Present law provides for an income or corporation franchise tax credit for ad valorem taxes
paid to political subdivisions after Dec. 31, 2000, by a telephone company for public service
property owned by the telephone company which is assessed by the La. Tax Commission
at 25% of fair market value pursuant to present law. The amount of the credit shall be equal
to 40% of the taxes paid to political subdivisions.
Present law provides that the taxpayer is entitled to a refund for any allowable credit which
exceeds the aggregate tax liability of the taxpayer. Further requires the Dept. of Revenue
to refund the excess tax credit amount and interest to the taxpayer from current tax
collections within 90 days of receiving a tax credit claim.
Proposed law changes the tax credit from a refundable credit to one in which credit amounts
which exceed taxpayer liability may be carried forward against subsequent income or
corporation franchise tax liability for up to five years. Proposed law deletes the requirement
of paying refunds within 90 days of receiving a tax credit claim.
Present law requires the avails of sales and use taxes collected on the furnishing of interstate
and international telecommunication services to be deposited into the Telephone Company
Property Assessment Relief Fund for payment of credits and refunds as provided for in
present law.
Proposed law retains present law but deletes references to the payment of refunds.
Applicable to tax years beginning on or after Jan. 1, 2015.
(Amends R.S. 47:6006(A) and (B), 6006.1(C) and (D), and 6014(D) and (E)(2))
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