HLS 162ES-25 REENGROSSED
2016 Second Extraordinary Session
HOUSE BILL NO. 29
BY REPRESENTATIVE PRICE
REVENUE DEPARTMENT: Provides relative to the calculation of interest on certain
overpayments (Item #45)
1 AN ACT
2To amend and reenact R.S. 47:115(A)(3) and (C) and 1624(A), to enact R.S. 47:1624(C)
3 through (E), and to repeal R.S. 47:287.657, 617, and 1624.1, relative to the payment
4 of interest on certain overpayments; to provide for the calculation of interest on
5 certain overpayments; to provide for the authority of the secretary of the Department
6 of Revenue to pay interest on overpayments; to provide for certain limitations and
7 requirements; to provide for effectiveness; and to provide for related matters.
8Be it enacted by the Legislature of Louisiana:
9 Section 1. R.S. 47:115(A)(3) and (C) and 1624(A) are hereby amended and
10reenacted and R.S. 47:1624(C) through (E) are hereby enacted to read as follows:
11 §115. Refunds and credits
12 A. Employee refunds and credits.
13 * * *
14 (3) To the extent that the aforesaid credit credit provided for in Paragraph (1)
15 of this Subsection, together with other credits allowed by law, is in excess of the
16 employee's income tax liability for said the taxable year, as shown on an income tax
17 return filed by such employee for that year, such overpayment shall be considered
18 as taxes erroneously paid to be credited or refunded as herein provided. Such
19 overpayment shall be credited to such person's estimated or income tax liability for
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1 the succeeding taxable year unless such person shall claim a refund therefor except
2 that overpayment of one dollar or less shall be refunded or credited only upon the
3 receipt by the secretary of a written demand for such refund from the taxpayer;
4 however, the collector is authorized to consider any final return showing an
5 overpayment as a claim for refund. An overpayment shall bear no interest if credit
6 is given therefor; amounts refunded as overpayments shall bear interest at the rate
7 established pursuant to R.S. 13:4202 per year computed from ninety days after the
8 filing date of the final return showing the overpayment, or from the due date of such
9 final return, whichever is later.
10 * * *
11 C. Other refunds and credits. To the extent a taxpayer's payments, together
12 with other credits allowed by law, is in excess of his income tax liability shown on
13 a return filed for the taxable year, such overpayment shall be considered as taxes
14 erroneously paid to be credited or refunded as herein provided. Such overpayment
15 shall be credited to the taxpayer's estimated or income tax liability for the succeeding
16 taxable year unless a claim for refund is made. Notwithstanding any provision of
17 this Subsection to the contrary, an overpayment of one dollar or less shall be
18 refunded or credited only upon the receipt by the secretary of a written demand for
19 such refund from the taxpayer. The secretary is authorized to consider any final
20 return showing an overpayment as a claim for refund. An overpayment shall bear
21 no interest if credit is given. Amounts refunded as overpayments shall bear interest
22 at the rate established pursuant to R.S. 13:4202 computed from ninety days after the
23 filing date of the final return showing the overpayment or from the due date of the
24 final return, whichever is later. No interest on refunds shall be allowed if, the
25 secretary proves by clear and convincing evidence that a person has deliberately
26 overpaid a tax in order to derive the benefit of the interest allowed by this Section.
27 Payments of interest authorized by this Section shall be made from funds derived
28 from current collections of the tax to be refunded.
29 * * *
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1 §1624. Interest on refunds or credits
2 A.(1) Notwithstanding any other provision of law to the contrary, on all
3 refunds or credits the secretary shall compute and allow as part of the refund or
4 credit, interest at the annual rate established in R.S. 13:4202 from the date the return
5 was due, the date the first return for that tax period was filed, or the date the tax was
6 paid, whichever is later ninety days after the later of the due date of the return, the
7 filing date of the return on which the overpayment is claimed, or the date the tax was
8 paid. An overpayment shall bear no interest if it is credited to the taxpayer's account.
9 No interest on refunds or credits shall be allowed if, the secretary proves by clear and
10 convincing evidence that a person has deliberately overpaid a tax in order to derive
11 the benefit of the interest allowed by this Section. Payments of interest authorized
12 by this Section shall be made from funds derived from current collections of the tax
13 to be refunded or credited.
14 (2) Notwithstanding any other provision of law to the contrary, interest on
15 a refund of an overpayment of severance tax to an operator whose well qualifies for
16 the severance tax suspension pursuant to R.S. 47:633(7)(c)(iii) or (9)(d)(v) for new
17 horizontal or deep wells shall be computed from ninety days after a properly filed
18 claim for refund or an amended return for the new horizontal or deep well has been
19 submitted to the department with all supporting documentation.
20 * * *
21 C. The provisions of this Section shall govern the calculation of interest on
22 all refunds or credits resulting from the collection of any tax or administration of any
23 provision by or on behalf of the secretary of the Department of Revenue pursuant to
24 any provision contained in Title 26, Title 47, Title 51, or any other provision
25 contained in the Louisiana Revised Statutes of 1950. However, the provisions of this
26 Section shall not govern for the purposes of calculating any interest on refunds
27 granted pursuant to the International Fuel Tax Agreement.
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1 D. The secretary may offset any overpayments of estimated corporate
2 income tax against the corporation's income tax or franchise tax for the purpose of
3 determining the interest due under the provisions of R.S. 47:1601.
4 E. No refund of franchise tax shall be paid by the secretary until any claim
5 of offset filed by the office of unemployment insurance administration of the
6 Louisiana Workforce Commission against the taxpayer under R.S. 23:1733 has been
7 satisfied.
8 Section 2. R.S. 47:287.657, 617, and 1624.1 are hereby repealed in their entirety.
9 Section 3. The provisions of this Act shall apply to any refunds issued on or after
10September 1, 2016, notwithstanding the tax period to which the claim relates.
11 Section 4. This Act shall become effective on July 1, 2016.
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 29 Reengrossed 2016 Second Extraordinary Session Price
Abstract: Requires interest on all refunds or credits by the Dept. of Revenue to be
calculated 90 days after the date the return was due, the claim of overpayment was
filed, or the tax was paid, whichever is later.
Present law provides for the refunds of overpayments of specific taxes. Refunds bear
interest at the rate of judicial interest from 90 days after the filing date of the return showing
the overpayment or the due date of such return, whichever is later.
Present law, for all refunds or credits issued by the secretary of the Dept. of Revenue (the
secretary), requires the secretary to compute and allow as part of a refund or credit, interest
at the rate of judicial interest beginning to accrue at the date the return was due, the first
return for that tax period was filed, or the tax was paid, whichever is later.
Proposed law changes present law to provide that interest begins to accrue 90 days after the
date the return was due, the return claiming overpayment was filed, or the tax was paid,
whichever is later. Proposed law governs the calculation of interest on all refunds or credits
by or on behalf of the secretary pursuant to Title 26 (Liquors - Alcoholic Beverages), Title
47 (Revenue and Taxation), Title 51 (Trade and Commerce), or any other revised statute,
except interest on refunds granted pursuant to the International Fuel Tax Agreement.
Present law (R.S. 47:1624.1) provides for the payment of interest on the overpayment of
severance tax to an operator whose new horizontal or deep well qualifies for a severance tax
suspension. For the first 180 days after a properly filed claim for refund or an amended
return is submitted, the rate of interest is the U.S. Treasury Yield Curve Constant Maturity
6-Month Treasury Rate. Any interest after the first 180 days is calculated at the judicial
interest rate.
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Proposed law repeals present law but provides that interest shall be computed from 90 days
after a properly filed claim or amended return has been submitted.
Present law authorizes the secretary to net any overpayments of franchise tax against
corporate income taxes due in determining the amount of interest the corporation owes on
the unpaid taxes. Further authorizes the secretary to net any overpayments of corporate
income tax against franchise taxes due.
Proposed law repeals present law and instead authorizes the secretary to offset any
overpayments of estimated corporate income tax or franchise tax against the estimated
corporate income tax in determining the amount of interest the corporation owes.
Present law prohibits the payment of a franchise tax refund until any claims of offset by the
office of unemployment insurance administration has been satisfied.
Proposed law retains present law.
Applicable to any refunds issued on or after Sept. 1, 2016, notwithstanding the tax period
to which the claim relates.
Effective July 1, 2016.
(Amends R.S. 47:115(A)(3) and (C) and 1624(A); Adds R.S. 47:1624(C) - (E); Repeals R.S.
47:287.657, 617, and 1624.1)
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Make technical changes.
2. Authorize the secretary to "offset" instead of "net" overpayments of corporate
income tax against corporation income tax or franchise tax for determining the
interest due.
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