The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 6 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
natural gas storage facilities.
Proposed law retains the credit for ad valorem taxes on inventory paid before January 1, 2016,
however, the credit will no longer be refundable and will be divided into four equal nonrefundable
parts to be utilized to offset tax in each of the next four tax years.
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 ad valorem taxes on inventory 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 retains the credit for ad valorem taxes on OCS vessels paid before January 1, 2016,
however, the credit will change from a refundable credit to a nonrefundable credit that may be
carried forward for four years.
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 ad valorem taxes paid on OCS vessels
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 retains the credit for ad valorem taxes by telephone companies paid before January 1,
2016, however, the credit will change from a refundable credit to a non-refundable credit that may
be carried forward for four years.
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.
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))