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 90 Original 2016 First Extraordinary Session Ivey
Abstract: Provides for the phasing-out of the corporation franchise tax over a period of three years.
Present law (R.S. 47:601 et seq.) establishes the corporation franchise tax. Such tax is levied on
every domestic and foreign corporation exercising its charter, qualified to do business, or actually
doing business in La. It is also levied on any domestic or foreign corporation owning or using any
part of its capital, plant, or other property in La. Proposed law phases out present law, as more fully
explained below.
Present law provides that the tax shall be levied at the following rates:
(1)$1.50 per $1,000 of taxable capital, up to $300,000.
(2)$3 per $1,000 of taxable capital above $300,000.
Proposed law retains present law but provides that the amount levied under present law shall be
reduced by a cumulative 25% each year beginning Jan. 1, 2017, over the next three years until the
amount levied is eliminated. Proposed law further provides that in taxable years beginning on or
after Jan. 1, 2020, no corporation franchise tax shall be assessed or paid.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:601)