HLS 161ES-69 ORIGINAL
2016 First Extraordinary Session
HOUSE BILL NO. 46
BY REPRESENTATIVE JAMES
TAX CREDITS: Reduces the amount of certain ad valorem tax credits and provides for the
carry forward rather than the refund of a certain portion of excess credit amounts
(Item #31)
1 AN ACT
2To amend and reenact R.S. 47:6006(A), (B), and (D), 6006.1(A) and (E), and 6014(A), and
3 to repeal R.S. 47:6006.1(C) and 6014(D) and (E), relative to income and corporation
4 franchise tax credits; to provide with respect to tax credits for ad valorem taxes paid
5 on inventory, certain offshore vessels, and certain telephone company public service
6 properties; to reduce the amount of the tax credits; to provide with respect to the
7 issuance of refunds for tax credits which exceed taxpayer liability; to repeal the
8 statutory dedication of the Telephone Company Property Assessment Relief Fund;
9 to provide for an effective date; and to provide for related matters.
10Be it enacted by the Legislature of Louisiana:
11 Section 1. R.S. 47:6006(A), (B), and (D), 6006.1(A) and (E), and 6014(A) are
12hereby amended and reenacted to read as follows:
13 §6006. Tax credits for local inventory taxes paid
14 A.(1) There shall be allowed a credit against any Louisiana income or
15 corporation franchise tax for ad valorem taxes paid to political subdivisions on
16 inventory held by manufacturers, distributors, and retailers. The amount of the credit
17 is provided for in Subsection D of this Section.
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
20 natural gas held, used, or consumed in providing natural gas storage services or
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HB NO. 46
1 operating natural gas storage facilities. The amount of the credit is provided for in
2 Subsection D of this Section.
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 secretary shall make
6 a refund to the taxpayer in the amount to which he is entitled from the current
7 collections of the taxes collected pursuant to Chapter 1 and Chapter 5 of Subtitle II.
8 If the amount of the credit authorized pursuant to Subsection A of this Section
9 exceeds the amount of tax liability for the tax year, the following amounts of the
10 excess credit shall either be refundable or may be carried forward as a credit against
11 subsequent Louisiana income or corporation franchise tax liability for a period not
12 to exceed five years, as follows:
13 (1) Eligible taxpayers whose ad valorem taxes paid to all political
14 subdivisions in the taxable year was less than ten thousand dollars shall be refunded
15 all of the excess credit.
16 (2) Eligible taxpayers whose ad valorem taxes paid to all political
17 subdivisions in the taxable year was ten thousand dollars or more shall be refunded
18 seventy-five percent of the excess credit, and the remaining twenty-five percent of
19 the credit may be carried forward as a credit against subsequent tax liability for a
20 period not to exceed five years.
21 * * *
22 D.(1) The amount of the credit provided in this Section shall be allowed as
23 follows:
24 (1) For inventory taxes paid to political subdivisions on or after Ju1y 1,
25 1992, and before June 30, 1993, the credit shall be twenty percent of such taxes paid.
26 (a) For inventory taxes paid to all political subdivisions prior to January 1, 2016, the
27 credit provided for in this Section shall be inapplicable, inoperable, and of no effect.
28 (2) For inventory taxes paid to political subdivisions on or after July 1, 1993,
29 and before June 30, 1994, the credit shall be forty percent of such taxes paid.
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HB NO. 46
1 (3) For inventory taxes paid to political subdivisions on or after July 1, 1994,
2 and before June 30, 1995, the credit shall be sixty percent of such taxes paid.
3 (4) For inventory taxes paid to political subdivisions on or after July 1, 1995,
4 and before June 30, 1996, the credit shall be eighty percent of such taxes paid.
5 (5) For inventory taxes paid to political subdivisions on or after July 1, 1996,
6 the credit shall be one hundred percent of such taxes paid.
7 (b) For inventory taxes paid on and after January 1, 2016, the amount of the
8 credit authorized pursuant to the provisions of this Section shall be equal to eighty
9 percent of the inventory taxes paid to political subdivisions.
10 (i) If the amount of the taxes paid to all political subdivisions is less than ten
11 thousand dollars in any one year and the amount of the credit authorized pursuant to
12 the provisions of this Section exceeds the tax liability of the taxpayer for that year,
13 the secretary of the Department of Revenue shall refund the excess amount of the
14 credit to the taxpayer from the current collections of the taxes collected pursuant to
15 Chapter 1 and Chapter 5 of Subtitle II of this Title.
16 (ii) If the amount of the taxes paid to all political subdivisions is ten
17 thousand dollars or more in any one year and the amount of the credit authorized
18 pursuant to the provisions of this Section exceeds the tax liability of the taxpayer for
19 that year, seventy-five percent of the excess credit amount shall be refunded to the
20 taxpayer and the remaining twenty-five percent of the excess credit amount may be
21 carried forward as a credit against subsequent Louisiana income or corporation
22 franchise tax liability for a period not to exceed five years. The secretary of the
23 Department of Revenue shall refund the excess amount of the credit to the taxpayer
24 from the current collections of the taxes collected pursuant to Chapter 1 and Chapter
25 5 of Subtitle II of this Title
26 * * *
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HB NO. 46
1 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental
2 Shelf Lands Act Waters
3 A. There shall be allowed a credit against any Louisiana income or
4 corporation franchise tax for ad valorem taxes paid without protest to political
5 subdivisions on vessels in Outer Continental Shelf Lands Act Waters as certified to
6 the assessor pursuant to R.S. 47:1956(B) within the calendar year immediately
7 preceding the taxable year of assessment of such vessel. The amount of the credit
8 is provided for in Subsection E of this Section. For purposes of this Section, ad
9 valorem taxes shall be deemed to be paid to political subdivisions when they are paid
10 without protest either in money or by applying credits established pursuant to R.S.
11 47:2108.1.
12 * * *
13 E.(1) The amount of the credit provided in this Section shall be allowed as
14 follows:
15 (1) For ad valorem taxes on Outer Continental Shelf Lands Act Waters
16 vessels paid to political subdivisions on or after July 1, 1994, and before June 30,
17 1995, the credit shall be sixty percent of such taxes paid.
18 (2) For ad valorem taxes on Outer Continental Shelf Lands Act Waters
19 vessels paid to political subdivisions on or after July 1, 1995, and before June 30,
20 1996, the credit shall be eighty percent of such taxes paid.
21 (3) For ad valorem taxes on Outer Continental Shelf Lands Act Waters
22 vessels paid to political subdivisions on or after July 1, 1996, the credit shall be one
23 hundred percent of such taxes paid.
24 (a) For ad valorem taxes paid to all political subdivisions prior to January 1,
25 2016, the credit provided for in this Section shall be inapplicable, inoperable, and of
26 no effect.
27 (b) For ad valorem taxes paid on or after January 1, 2016, the amount of the
28 credit authorized pursuant to the provisions of this Section shall be equal to eighty
29 percent of the ad valorem taxes paid without protest to political subdivisions on
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HB NO. 46
1 vessels in Outer Continental Shelf Lands Act Waters as certified to the assessor
2 pursuant to R.S. 47:1956(B) within the calendar year immediately preceding the
3 taxable year of assessment of the vessel. If the amount of the credit authorized
4 pursuant to the provision of this Section exceeds the tax liability of the taxpayer for
5 that year, seventy-five percent of the excess credit amount shall be refunded to the
6 taxpayer and the remaining twenty-five percent of the excess credit amount may be
7 carried forward as a credit against subsequent Louisiana income or corporation
8 franchise tax liability for a period not to exceed five years.
9 (2) The secretary shall make a refund to the taxpayer in the amount to which
10 he is entitled from the current collections of the taxes collected pursuant to Chapter
11 1 and Chapter 5 of Subtitle II of this Title.
12 * * *
13 §6014. Credit for property taxes paid by certain telephone companies; fund
14 A.(1) Pursuant to the provisions of this Section, there shall be allowed a
15 credit against Louisiana corporation or individual income taxes and Louisiana
16 corporation franchise tax for, and in an amount equal to, forty percent of the
17 aggregate ad valorem taxes paid to political subdivisions of this state after December
18 31, 2000, by a telephone company, as defined in R.S. 47:1851(Q), with respect to
19 such telephone company's public service properties, as defined in R.S. 47:1851(M),
20 which are assessed by the Louisiana Tax Commission at twenty-five percent of fair
21 market value pursuant to R.S. 47:1854. The amount of the credit provided for in this
22 Section shall be as follows:
23 (a) For ad valorem taxes paid to all political subdivisions prior to January 1,
24 2016, the credit provided for in this Section shall be inapplicable, inoperable, and of
25 no effect.
26 (b) For ad valorem taxes paid on and after January 1, 2016, the amount of
27 the credit authorized pursuant to the provisions of this Section shall be equal to
28 thirty-two percent of the ad valorem taxes paid to political subdivisions by a
29 telephone company with respect to company's public service properties assessed by
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HB NO. 46
1 the Louisiana Tax Commission at twenty-five percent of fair market value. If the
2 amount of the credit authorized pursuant to the provision of this Section exceeds the
3 tax liability of the taxpayer for that year, seventy-five percent of the excess credit
4 amount shall be refunded to the taxpayer and the remaining twenty-five percent of
5 the excess credit amount may be carried forward as a credit against subsequent
6 Louisiana income or corporation franchise tax liability for a period not to exceed five
7 years.
8 (2) The secretary shall make a refund to the taxpayer in the amount to which
9 he is entitled from the current collections of the taxes collected pursuant to Chapter
10 2 of Subtitle II of this Title.
11 * * *
12 Section 2. R.S. 47:6006.1(C) and 6014(D) and (E) are hereby repealed in their
13entirety.
14 Section 3. This Act shall become effective upon signature by the governor or, if not
15signed by the governor, upon expiration of the time for bills to become law without signature
16by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
17vetoed by the governor and subsequently approved by the legislature, this Act shall become
18effective on the day following such approval.
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 46 Original 2016 First Extraordinary Session James
Abstract: Suspends the tax credits for ad valorem taxes paid prior to Jan. 1 , 2016, on
inventory, offshore vessels, and telephone company public service properties and
reduces the amount of the credits and modifies refundability of excess credit
amounts for ad valorem taxes paid on and after Jan. 1, 2016.
INVENTORY
Present law provides for income or corporation franchise tax credits for ad valorem taxes
paid to political subdivisions on inventory held by manufacturers, distributors, and retailers
and for ad valorem taxes paid to political subdivisions on natural gas held, used, or
consumed in providing natural gas storage services or operating natural gas storage facilities.
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HB NO. 46
Present law provides that if a taxpayer pays less than $10,000 in ad valorem taxes to all
political subdivisions, then any amount of the tax credit that exceeds the taxpayer's tax
liability is 100% refundable to the taxpayer. Further provides that if a taxpayer pays $10,000
or more in ad valorem taxes to all political subdivisions, then 75% of the amount of the
credit that exceeds the taxpayer's tax liability is refundable to the taxpayer and the remaining
25% of the credit may be carried forward as a credit against subsequent tax liability for a
period not to exceed five years.
Proposed law changes present law by disallowing the credit for inventory taxes paid to all
political subdivisions prior to Jan. 1, 2016. Proposed law further reduces the amount of the
credit for inventory taxes paid to all political subdivisions on and after Jan. 1, 2016 from
100% of the inventory taxes paid to 80%.
Proposed law retains present law regarding the refundability of the excess amount of tax
credit for taxpayers whose tax liability is less than the amount of the credit.
OFFSHORE VESSELS
Present law provides for income or corporation franchise tax credits for ad valorem taxes
paid without protest to political subdivisions on vessels in Outer Continental Shelf Lands
Act Waters as certified to the assessor within the calendar year immediately preceding the
taxable year of assessment of such vessel. The amount of the credit shall be 100% of the ad
valorem taxes paid to political subdivisions on these vessels.
Present law provides that if the tax credit amount exceeds the taxpayer's tax liability, then
100% of the excess amount of the credit shall be refunded to the taxpayer.
Proposed law changes present law by disallowing the credit for ad valorem taxes paid to all
political subdivisions prior to Jan. 1, 2016.
Proposed law reduces the amount of the credit for ad valorem taxes paid to all political
subdivisions on and after Jan. 1, 2016 from 100% of the inventory taxes paid to 80% and
reduces the amount of the credit which may be refunded to a taxpayer if the taxpayer's tax
credit amount exceeds his tax liability from 100% refundable to 75%. The remaining 25%
of the excess credit amount may be carried forward as a credit against subsequent tax
liability for a period not to exceed five years.
TELEPHONE COMPANY PUB LIC SERVICE PROPERTY
Present law provides for income or corporation franchise tax credits for ad valorem taxes
paid to political subdivisions by a telephone company on the company's public service
properties which are 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 aggregate
amount of ad valorem taxes paid on these properties.
Present law provides that if the tax credit amount exceeds the taxpayer's tax liability, then
100% of the excess amount of the credit shall be refunded to the taxpayer.
Proposed law changes present law by disallowing the credit for ad valorem taxes paid to all
political subdivisions prior to Jan. 1, 2016.
Proposed law further reduces the amount of the credit for ad valorem taxes paid to all
political subdivisions on and after Jan. 1, 216 from 40% of the inventory taxes paid to 32%
and reduces the amount of the credit which may be refunded to a taxpayer if the taxpayer's
tax credit amount exceeds his tax liability from 100% refundable to 75%. The remaining
25% of the excess credit amount may be carried forward as a credit against subsequent tax
liability for a period not to exceed five years.
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HB NO. 46
Present law establishes the "Telephone Company Property Assessment Relief Fund"
("fund") as a special treasury fund wherein the avails of the sales and use taxes imposed
under present law attributable to the furnishing of interstate and international
telecommunication services shall be credited. Present law requires the monies in the fund
to be used solely for paying the credits or refunds as provided in present law.
Proposed law repeals the special treasury fund and provides that the secretary shall make
refunds for this tax credit from current sales tax collections.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6006(A), (B), and (D), 6006.1(A) and (E), and 6014(A); Repeals R.S.
47:6006.1(C) and 6014(D) and (E))
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