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2016 First Extraordinary Session
SENATE BILL NO. 2
BY SENATOR MORRELL
TAX/TAXATION. Provides for the reduction of the amount of certain ad valorem tax
credits and for carryforward rather than the refund of certain portion of excess credit amount.
(gov sig)
1 AN ACT
2 To 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 tax credits; to provide
4 with respect to tax credits for ad valorem taxes paid on inventory, certain offshore
5 vessels, and certain telephone company public service properties; to reduce the
6 amount of the tax credits; to provide with respect to the issuance of refunds for tax
7 credits which exceed taxpayer liability; to provide for an effective date; and to
8 provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 47:6006(A), (B), and (D), 6006.1(A) and (E), and 6014(A) are
11 hereby amended and reenacted 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. The amount of the
16 credit is provided for in Subsection D of this Section.
17 (2) There shall be allowed a credit against any Louisiana income or
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1 corporation franchise tax for ad valorem taxes paid to political subdivisions on
2 natural gas held, used, or consumed in providing natural gas storage services or
3 operating natural gas storage facilities. The amount of the credit is provided for
4 in Subsection D of this Section.
5 B. Credit for taxes paid by corporations shall be applied to state corporate
6 income and corporation franchise taxes. Credit for taxes paid by unincorporated
7 persons shall be applied to state personal income taxes. The secretary shall make a
8 refund to the taxpayer in the amount to which he is entitled from the current
9 collections of the taxes collected pursuant to Chapter 1 and Chapter 5 of Subtitle II.
10 If the amount of the credit authorized pursuant to Subsection A of this Section
11 exceeds the amount of tax liability for the tax year, the following amounts of the
12 excess credit shall either be refundable or 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, as follows:
15 (1) Eligible taxpayers whose ad valorem taxes paid to all political
16 subdivisions in the taxable year was less than ten thousand dollars shall be refunded
17 all of the excess credit.
18 (2) Eligible taxpayers whose ad valorem taxes paid to all political
19 subdivisions in the taxable year was ten thousand dollars or more shall be refunded
20 seventy-five percent of the excess credit, and the remaining twenty-five percent of
21 the credit may be carried forward as a credit against subsequent tax liability for a
22 period not to exceed five years.
23 * * *
24 D. The amount of the credit provided in this Section shall be allowed as
25 follows:
26 (1) For inventory taxes paid to political subdivisions on or after Ju1y 1, 1992,
27 and before June 30, 1993, the credit shall be twenty percent of such taxes paid.
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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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 (1) For inventory taxes paid to all political subdivisions prior to January
8 1, 2016, the credit provided for in this Section shall be inapplicable, inoperable,
9 and of no effect.
10 (2) For inventory taxes paid on and after January 1, 2016, the amount
11 of the credit authorized pursuant to this Section shall be equal to eighty percent
12 of the inventory taxes paid to political subdivisions.
13 (a) If the amount of the taxes paid to all political subdivisions is less than
14 ten thousand dollars in any one year and the amount of the credit authorized
15 pursuant to this Section exceeds the tax liability of the taxpayer for that year,
16 the excess credit amount shall constitute an overpayment, as defined in R.S.
17 47:1621(A), and the secretary of the Department of Revenue shall make a
18 refund of such overpayment to the taxpayer from the current collections of the
19 taxes collected pursuant to Chapter 1 and Chapter 5 of Subtitle II of this Title.
20 (b) If the amount of the taxes paid to all political subdivision is ten
21 thousand dollars or more in any one year and the amount of the credit
22 authorized pursuant to this Section exceeds the tax liability of the taxpayer for
23 that year, seventy-five percent of the excess credit amount shall constitute an
24 overpayment, as defined in R.S. 47:1621(A), and the secretary of the
25 Department of Revenue shall make a refund of such overpayment to the
26 taxpayer from the current collections of the taxes collected pursuant to Chapter
27 1 and Chapter 5 of Subtitle II of this Title and the remaining twenty-five
28 percent of the excess credit amount may be carried forward as a credit against
29 subsequent Louisiana income or corporation franchise tax liability for a period
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1 not to exceed five years.
2 * * *
3 §6006.1. Tax credits for taxes paid with respect to vessels in Outer Continental Shelf
4 Lands Act Waters
5 A. There shall be allowed a credit against any Louisiana income or
6 corporation franchise tax for ad valorem taxes paid without protest to political
7 subdivisions on vessels in Outer Continental Shelf Lands Act Waters as certified to
8 the assessor pursuant to R.S. 47:1956(B) within the calendar year immediately
9 preceding the taxable year of assessment of such vessel. The amount of the credit
10 is provided for in Subsection E of this Section. For purposes of this Section, ad
11 valorem taxes shall be deemed to be paid to political subdivisions when they are paid
12 without protest either in money or by applying credits established pursuant to R.S.
13 47:2108.1.
14 * * *
15 E.(1) The amount of the credit provided in this Section shall be allowed as
16 follows:
17 (1) For ad valorem taxes on Outer Continental Shelf Lands Act Waters
18 vessels paid to political subdivisions on or after July 1, 1994, and before June 30,
19 1995, the credit shall be sixty percent of such taxes paid.
20 (2) For ad valorem taxes on Outer Continental Shelf Lands Act Waters
21 vessels paid to political subdivisions on or after July 1, 1995, and before June 30,
22 1996, the credit shall be eighty percent of such taxes paid.
23 (3) For ad valorem taxes on Outer Continental Shelf Lands Act Waters
24 vessels paid to political subdivisions on or after July 1, 1996, the credit shall be one
25 hundred percent of such taxes paid.
26 (a) For ad valorem taxes paid to all political subdivisions prior to
27 January 1, 2016, the credit provided for in this Section shall be inapplicable,
28 inoperable, and of no effect.
29 (b) For ad valorem taxes paid on or after January 1, 2016, the amount
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1 of the credit authorized pursuant to this Section shall be equal to eighty percent
2 of the ad valorem taxes paid without protest to political subdivisions on vessels
3 in Outer Continental Shelf Lands Act Waters as certified to the assessor
4 pursuant to R.S. 47:1956(B) within the calendar year immediately preceding the
5 taxable year of assessment of the vessel. If the amount of the credit authorized
6 pursuant to this Section exceeds the tax liability of the taxpayer for that year,
7 seventy-five percent of the excess credit amount shall constitute an
8 overpayment, as defined in R.S. 47:1621(A), and the secretary of the
9 Department of Revenue shall make a refund of such overpayment to the
10 taxpayer and the remaining twenty-five percent of the excess credit amount may
11 be carried forward as a credit against subsequent Louisiana income or
12 corporation franchise tax liability for a period not to exceed five years.
13 (2) Refunds authorized by this Section shall be made to the taxpayer in
14 the amount to which he is entitled from the current collections of the taxes
15 collected pursuant to Chapter 1 and Chapter 5 of Subtitle II of this Title.
16 * * *
17 §6014. Credit for property taxes paid by certain telephone companies; fund
18 A.(1) Pursuant to the provisions of this Section, there shall be allowed a
19 credit against Louisiana corporation or individual income taxes and Louisiana
20 corporation franchise tax for, and in an amount equal to, forty percent of the
21 aggregate ad valorem taxes paid to political subdivisions of this state after December
22 31, 2000, by a telephone company, as defined in R.S. 47:1851(Q), with respect to
23 such telephone company's public service properties, as defined in R.S. 47:1851(M),
24 which are assessed by the Louisiana Tax Commission at twenty-five percent of fair
25 market value pursuant to R.S. 47:1854. The amount of the credit provided for in
26 this Section shall be as follows:
27 (a) For ad valorem taxes paid to all political subdivisions prior to
28 January 1, 2016, the credit provided for in this Section shall be inapplicable,
29 inoperable, and of no effect.
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1 (b) For ad valorem taxes paid on and after January 1, 2016, the amount
2 of the credit authorized pursuant to this Section shall be equal to thirty-two
3 percent of the ad valorem taxes paid to political subdivisions by a telephone
4 company with respect to company's public service properties assessed by the
5 Louisiana Tax Commission at twenty-five percent of fair market value. If the
6 amount of the credit authorized pursuant to this Section exceeds the tax liability
7 of the taxpayer for that year, seventy-five percent of the excess credit amount
8 shall constitute an overpayment, as defined in R.S. 47:1621(A), and the
9 secretary of the Department of Revenue shall make a refund of such
10 overpayment to the taxpayer and the remaining twenty-five percent of the
11 excess credit amount may be carried forward as a credit against subsequent
12 Louisiana income or corporation franchise tax liability for a period not to
13 exceed five years.
14 (2) Refunds authorized by this Section shall be made to the taxpayer in
15 the amount to which he is entitled from the current collections of the taxes
16 collected pursuant to Chapter 2 of Subtitle II of this Title.
17 * * *
18 Section 2. R.S. 47:6006.1(C) and 6014(D) and (E) are hereby repealed in their
19 entirety.
20 Section 3. This Act shall become effective upon signature by the governor or, if not
21 signed by the governor, upon expiration of the time for bills to become law without signature
22 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
23 vetoed by the governor and subsequently approved by the legislature, this Act shall become
24 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 2 Original 2016 First Extraordinary Session Morrell
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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natural gas storage facilities.
Proposed law eliminates the credit for all taxes paid before January 1, 2016, but retains the
credit for taxes paid on or after January 1, 2016.
Present law authorizes an income and corporation franchise tax credit of 100% of the taxes
paid to political subdivisions.
Proposed law changes the amount of the credit to 80% of the taxes paid to political
subdivisions.
Present law authorizes the refundability of credits in excess of the income and franchise tax
liability for taxpayers whose tax liability for ad valorem taxes paid to political subdivisions
is $10,000 or less. For taxpayers that paid more than $10,000 in inventory tax, 75% of the
credit that exceeds the income and franchise tax liability is refundable and the remaining
25% of the excess credit may be carried forward against subsequent income or corporation
franchise tax liability for up to five years.
Proposed law retains present law.
Present law provides for an 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 (OCS).
Proposed law eliminates the credit for all taxes paid before January 1, 2016, but retains the
credit for taxes paid on or after January 1, 2016.
Present law authorizes an income and corporation franchise tax credit of 100% of the taxes
paid on vessels in OCS to political subdivisions.
Proposed law changes the amount of the credit to 80% of the taxes paid to political
subdivisions.
Present law provides for a refundable income or corporation franchise tax credit for ad
valorem taxes paid to political subdivisions by telephone companies with respect to their
public service properties that are assessed by the La. Tax Commission at 25%.
Proposed law eliminates the credit for all ad valorem taxes paid before January 1, 2016, but
retains the ad valorem credit for taxes paid on or after January 1, 2016.
Present law authorizes an income and corporation franchise tax credit of 40% of the ad
valorem taxes paid by telephone companies to political subdivisions.
Proposed law changes the amount of the credit to 32% of the ad valorem taxes paid to
political subdivisions.
Present law requires the dedication of sales and use taxes imposed pursuant to R.S. 47:302,
321, and 331 attributable to the furnishing of interstate and international telecommunication
services to the Telephone Company Property Assessment Relief Fund (the Fund).
Proposed law repeals this statutory dedication of such sales taxes.
Present law requires that refunds of the credit for ad valorem taxes by telephone companies
be paid from the Fund.
Proposed law eliminates this requirement and authorizes the Department of Revenue to issue
refunds of this credit from current collections of state sales and use tax.
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Effective upon signature of the 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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