HLS 15RS-1694 ENGROSSED
2015 Regular Session
HOUSE BILL NO. 805
BY REPRESENTATIVE ADAMS
TAX CREDITS: Provides for the carry forward rather than the refund of a certain portion
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) and 6006.1(C) and (D), relative to income
3 and corporation franchise tax credits; to provide with respect to the tax credit for ad
4 valorem taxes paid on inventory and certain natural gas; to provide with respect to
5 the tax credit for ad valorem taxes paid on certain offshore vessels; to provide with
6 respect to authorization for issuance of refunds for tax credits which exceed taxpayer
7 tax liability; to provide for certain limitations; to provide for effectiveness; and to
8 provide for related matters.
9Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:6006(A) and (B) and 6006.1(C) and (D) are hereby amended and
11reenacted to read as follows:
12 §6006. Tax credits for local inventory taxes paid
13 A.(1) There shall be allowed a credit against any Louisiana income or
14 corporation franchise tax for ad valorem taxes paid to political subdivisions on
15 inventory held by manufacturers, distributors, and retailers and.
16 (2) There shall be allowed a credit against any Louisiana income or
17 corporation franchise tax for ad valorem taxes paid to political subdivisions on
18 natural gas held, used, or consumed in providing natural gas storage services or
19 operating natural gas storage facilities.
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HB NO. 805
1 B. Credit for taxes paid by corporations shall be applied to state corporate
2 income and corporation franchise taxes. Credit for taxes paid by unincorporated
3 persons shall be applied to state personal income taxes. The taxpayer shall be
4 entitled to a refund for any allowable credit which exceeds the aggregate tax liability
5 of the taxpayer for the taxes imposed by Chapter 1 and Chapter 5 of Subtitle II of
6 this Title. The secretary shall make such refund to the taxpayer in the amount to
7 which he is entitled from the current collections of the taxes collected pursuant to
8 Chapter 1 and Chapter 5 of such Subtitle II. If the amount of the credit authorized
9 pursuant to Subsection A of this Section exceeds the amount of tax liability for the
10 tax year, seventy-five percent of the excess credit shall be refundable and twenty-five
11 percent of the excess credit may be carried forward as a credit against subsequent
12 Louisiana income or corporation franchise tax liability for a period not to exceed five
13 years.
14 * * *
15 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental
16 Shelf Lands Act Waters
17 * * *
18 C. Notwithstanding any other provision of law to the contrary in Title 47 of
19 the Louisiana Revised Statutes of 1950, as amended, any excess of allowable credit
20 established by this Section over the aggregate tax liabilities against which such credit
21 can be applied, as provided in this Section, shall constitute an overpayment, as
22 defined in R.S. 47:1621(A), and the secretary shall make a refund of such
23 overpayment from the current collections of the taxes imposed by Chapter 1 or
24 Chapter 5 of Subtitle II of Title 47 of the Louisiana Revised Statutes of 1950, as
25 amended, together with interest as provided in R.S. 47:1624. The right to a credit
26 or refund of any such overpayment shall not be subject to the requirements of R.S.
27 47:1621(B). If the amount of the credit exceeds the amount of tax liability for the
28 tax year, seventy-five percent of the excess credit shall be refundable and twenty-five
29 percent of the excess credit may be carried forward as a credit against subsequent
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HB NO. 805
1 Louisiana income or corporation franchise tax liability for a period not to exceed five
2 years. All credits and refunds, together with interest thereon, must be paid or
3 disallowed within ninety days of receipt by the secretary, of any such claim for
4 refund or claim for a credit. Failure of the secretary to pay or disallow, in whole or
5 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 Section 2. The provisions of this Act shall apply to all claims for these credits on any
20return filed on or after July 1, 2015, regardless of the taxable year to which the return relates.
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 Engrossed 2015 Regular Session Adams
Abstract: Changes the tax credit for ad valorem taxes paid on certain inventory, natural
gas, and vessels in Outer Continental Shelf Lands Act Waters from refundable
credits to credits in which 75% of the excess credit amount shall be refundable and
25% of the excess credit amount 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
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HB NO. 805
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 75% of excess
credit amounts which exceed taxpayer liability shall be refundable and 25% of the excess
credit amounts may be carried forward against subsequent income or corporation franchise
tax liability for up to five years.
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 75% of excess
credit amounts which exceed taxpayer liability shall be refundable and 25% of the excess
credit amounts 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.
Applicable to all claims for these tax credits on any return filed on or after July 1, 2015,
regardless of the taxable year to which the return relates.
(Amends R.S. 47:6006(A) and (B) and 6006.1(C) and (D))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Delete the income or corporation franchise tax credit for ad valorem taxes paid
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 from the provisions of proposed law.
2. Change the tax credits from 100% nonrefundable to credits in which 75% of
excess credit amounts which exceed taxpayer liability shall be refundable and
25% of the excess credit amounts may be carried forward against subsequent
income or corporation franchise tax liability for up to five years.
3. Add applicability provision for all claims for these tax credits on returns filed on
or after July 1, 2015, regardless of the taxable year to which the return relates.
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CODING: Words in struck through type are deletions from existing law; words underscored
are additions.