SLS 161ES-43 ORIGINAL
2016 First Extraordinary Session
SENATE BILL NO. 17
BY SENATOR MORRELL
TAX/TAXATION. Provides for the reduction to the amount of the insurance premium tax
for certain Louisiana investments. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 22:832(A), (B), and (C), relative to the insurance premium tax
3 credit for qualifying Louisiana investments; to provide for a reduction of the tax due
4 in certain circumstances; to provide for the definition of a qualifying Louisiana
5 investment; to provide for an effective date; and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 22:832(A), (B), and (C) are hereby amended and reenacted to read
8 as follows:
9 ยง832. Reduction of tax when certain investments are made in Louisiana
10 A. The amount of the tax payable shall be reduced from the amount otherwise
11 fixed in this Part if the payer files a sworn statement with the annual report required
12 by this Part showing as of the end of each fiscal quarter reporting period that at least
13 the following amounts of the total admitted assets of the payer, less assets in an
14 amount equal to the reserves on its policies issued in foreign countries in which it is
15 authorized to do business and which countries require an investment therein as a
16 condition of doing business, are invested and maintained in qualifying Louisiana
17 investments as hereinafter defined in Subsection C of this Section. The amount of tax
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 17
SLS 161ES-43 ORIGINAL
1 credit granted in Subsection B of this Section shall be based on the average of the
2 percentage of qualifying Louisiana securities investments held at the end of each
3 fiscal quarter for the fiscal year.
4 B.(1) If one-sixth of the total admitted assets of the payer are in qualifying
5 Louisiana investments, then the tax payable shall be thirty-three and one-third
6 percent of the amount otherwise fixed in this Part; if at least one-fifth of the total
7 admitted assets of the payer are in qualifying Louisiana investments, then the tax
8 payable shall be twenty-five percent of the amount otherwise fixed in this Part; if at
9 least one-fourth of the total admitted assets of the payer are in qualifying Louisiana
10 investments, the tax payable shall be fifteen percent of the amount otherwise fixed
11 in this Part; and if at least one-third of the total admitted assets of the payer are in
12 qualifying Louisiana investments, then the tax payable shall be five percent of the
13 amount otherwise fixed in this Part.
14 (2) Notwithstanding any other provision of law to the contrary, for any
15 taxable year beginning on or after January 1, 2016, and before January 1, 2018,
16 the amount of the tax credit as determined by Paragraph (1) of this Subsection
17 shall be reduced by ten percent.
18 C. For Beginning January 1, 2016, for the purposes of this Part, "a
19 qualifying Louisiana investment" is hereby defined as:
20 (1) Certificates of deposit issued in Louisiana by any bank or savings and
21 loan association or savings bank, any of which are operating in the state of Louisiana
22 or a trust company operating in the state of Louisiana with a main office or one or
23 more branches where the trust company holds such funds in trust and invests them
24 in certificates of deposit issued by a bank, savings and loan association or savings
25 bank operating in the state of Louisiana with a main office or one or more branches.
26 (2) Bonds of this state or bonds of municipal, school, road, or levee districts,
27 or other political subdivisions of this state or bonds approved for issue by the
28 Louisiana State Bond Commission;
29 (3)(2) Mortgages on property located in this state;
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 17
SLS 161ES-43 ORIGINAL
1 (4)(3) Real property located in this state;
2 (5)(4) Policy loans to residents of Louisiana, or other loans to residents of this
3 state, or to corporations domiciled in this state;
4 (6)(5) Common or preferred stock in corporations domiciled in this state; and
5 (7)(6) Cash on deposit in an account in Louisiana in any bank or savings and
6 loan association, or savings bank, or trust company holding such funds in trust,
7 operating in the state of Louisiana with a main office or one or more branches.
8 * * *
9 Section 2. This Act shall become effective upon signature by the governor or, if not
10 signed by the governor, upon expiration of the time for bills to become law without signature
11 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
12 vetoed by the governor and subsequently approved by the legislature, this Act shall become
13 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 17Original 2016 First Extraordinary Session Morrell
Present law grants a reduction of insurance premium tax for payers based on the average of
the percentage of qualifying Louisiana investments held at the end of the fiscal year.
Proposed law reduces the investment tax credit against premium taxes by 10% for taxable
years beginning on or after January 1, 2016, and before January 1, 2018.
Present law defines "qualifying Louisiana investments" which include certificates of deposit
issued by La. banks, La. state and local bonds, mortgages on property located in this state,
real property located in this state, loans to La. resident individuals and corporations, stock
in La. domiciled corporations, and cash on deposit in a bank that operates at least one branch
in the state.
Proposed law removes certificates of deposit from the qualifying Louisiana investment
calculation beginning Jan. 1, 2016.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 22:832(A), (B), and (C))
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.