The legislative instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Benjamin A. Huxen, II.
CONFERENCE COMMITTEE REP ORT DIGEST
SB 10 2016 Second Extraordinary Session Ward
Keyword and summary of the bill as proposed by the Conference Committee
TAX/AD VALOREM: Provides for the confidentiality of tax records and the definition of
manufacturer for purposes of the tax credits for ad valorem taxes paid to local governments.
(gov sig) (Item #47)
Report adopts House amendments to:
1. Delete provisions that exclude from the definition of "inventory" items of
tangible personal property held at a manufacturing establishment or an
addition thereto that was exempt from ad valorem taxation under present
constitution for the year in which ad valorem taxes were levied upon such
items of tangible personal property.
Report rejects House amendments which would have:
1. Authorized any excess credit amount in present law to carry forward for five
years for certain manufacturers.
2. Defined "manufacturer" for purposes of authorizing only a carry forward
credit for certain manufacturers.
3. Make the act effective upon signature of governor or lapse of time for
gubernatorial action.
Report amends the bill to:
1. Provides that the definition of manufacturer includes a person who meets
present law definition of manufacturer and who has claimed the ad valorem
exemption under present constitution during the taxable year in which the
local inventory taxes were levied and that such manufacturers and all related
parties, affiliates, subsidiaries, parent companies, or owners of such
manufacturers for the inventory held that is related to the business of such
manufacturers may only carry forward for five years any excess credit amount
in present law. Further provides that the secretary shall promulgate rules to
ensure that taxpayers affiliated with or related to any other entity through common ownership by the same interests or as a parent or subsidiary shall be
considered one taxpayer for the purpose of the limitations on refundability.
2. Deletes the provision specifying that manufacturer shall not mean a person
who has claimed the ad valorem exemption under Article VII, Section 21(F)
of the Constitution of Louisiana during the taxable year in which the local
inventory taxes were levied, unless a minimum of twenty-five percent of its
total Louisiana inventory subject to ad valorem taxation was not held at a new
manufacturing establishment, or an addition to an existing manufacturing
establishment, for which the ad valorem exemption is claimed.
3. Provides that proposed law applies to all claims for these credits on any
return filed on or after July 1, 2016, regardless of the taxable year to which
the return relates. Further provides that proposed law shall not apply to an
amended return filed on or after July 1, 2016, provided that these credits were
properly claimed on an original return filed prior to July 1, 2016. Makes the
act effective upon signature of governor or lapse of time for gubernatorial
action.
Digest of the bill as proposed by the Conference Committee
Present law provides that ad valorem tax forms filed by a taxpayer shall be confidential and
shall be used by the assessor, the governing authority, and the Louisiana Tax Commission
solely for the purpose of administering the provisions of Acts 1976, No. 705.
Proposed law permits use of ad valorem tax forms by the Department of Revenue for
purposes of verifying eligibility for inventory tax credits.
Present law authorizes a partially refundable tax credit for taxpayers who pay $10,000 or
more in ad valorem taxes on inventory held by manufacturers and allows any unused credits
to be carried forward as a credit against subsequent tax liability for a period not to exceed
five years.
Present law provides for the definition of "inventory" and contains certain exclusions from
that definition.
Present law provides that a "manufacturer" means a person engaged in the business of
working raw materials into wares suitable for use or which give new shapes, qualities, or
combinations to matter which already has gone through some artificial process.
Proposed law retains present law but further provides that a "manufacturer" shall also mean a person
who meets present law definition of manufacturer and who has claimed the ad valorem exemption
under present constitution during the taxable year in which the local inventory taxes were levied.
Proposed law further provides that such manufacturers and all related parties, affiliates, subsidiaries,
parent companies, or owners of such manufacturers for the inventory held that is related to the business of such manufacturers may only carry forward for five years any excess credit amount in
present law. Proposed law also provides that the secretary shall promulgate rules to ensure that
taxpayers affiliated with or related to any other entity through common ownership by the same
interests or as a parent or subsidiary shall be considered one taxpayer for the purpose of the
limitations on refundability provided for in proposed law.
Proposed law applies to all claims for these credits on any return filed on or after July 1, 2016,
regardless of the taxable year to which the return relates.
Proposed law shall not apply to an amended return filed on or after July 1, 2016, provided that these
credits were properly claimed on an original return filed prior to July 1, 2016.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:2327 and 6006(C)(3) and adds R.S. 47:6006(B)(3))