GREEN SHEET REDIGEST
HB 737 2016 Regular Session Abramson
(KEYWORD, SUMMARY, AND DIGEST as amended by Senate committee
amendments)
REVENUE DEPARTMENT: Changes the deadline for the submission of annual
reports to the Department of Revenue regarding deductions and withholdings of
employee wages.
DIGEST
Present law requires every employer who is required to deduct and withhold any tax under
present law and every person who deducts and withholds any amount from any wage
payments under the authority of present law to make a calendar quarterly return to the
secretary. Further provides for the deadline for the filing of quarterly returns as well as the
amount of the tax paid to the department by employers.
Present law additionally requires every employer to file an annual return with the secretary
that reconciles all previously filed quarterly returns for the calendar year together with copies
of the receipts required to be furnished under present law for that same period. The secretary
is authorized to grant a reasonable extension of time, not in excess of 30 days, for filing of
the annual return and to waive the filing requirement for an employer if the employer
requests a waiver due to hardship.
Proposed law retains present law.
Present law requires employers to file the annual return with the secretary on or before the
1st business day following February 27th of each year for the preceding calendar year.
Proposed law changes the date for the filing of the annual return from on or before the 1st
business day following February 27th of each year to on or before Jan. 31st of each year.
Present law provides that the motion picture investor tax credit pursuant to R.S. 47:6007
awards a tax credit for investments made and used for production expenditures in this state
for state-certified productions. Therefore, any individual receiving any payments for the
performance of services used directly in a production activity, which payments shall be
claimed as a production expenditure for purposes of certification of tax credits, is deemed
to be receiving Louisiana taxable income whether directly or indirectly through an agent or
agency, loan-out company, a personal service company, an employee leasing company, or
other entity.
Proposed law retains present law and provides that these payments are subject to the
withholding requirements of state and federal law and regulations.
Present law provides that any motion picture production company, motion picture payroll
services company, or other entity making or causing to be made payments as provided in
Subparagraph (a) of this Paragraph, to an individual, or to an agent or agency, loan-out
company, personal service company, employee leasing company, or other entity is considered
to be paying compensation taxable by the state of Louisiana. For purposes of eligibility as
a production expenditure, the company or other entity shall withhold taxes from those
payments at the highest individual rate of six percent, or the highest individual rate in effect
at the time.
Proposed law retains present law and provides that these payments shall be remitted to the
department on a quarterly basis, excluding any amount that would otherwise not be subject
to the withholding requirements imposed pursuant to state and federal law and regulations.
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Prepared by James Benton. Present law provides that the motion picture production company, motion picture payroll
services company, or other entity required to withhold income taxes as required by this
Paragraph shall electronically report and remit such withholdings to the Department of
Revenue quarterly. The information reported as required by this Subparagraph may be
provided to the Department of Economic Development and if provided, shall be subject to
the confidentiality provisions of R.S. 47:1508(B)(20). The reports shall contain the following
information:
(i)Name, address, and taxpayer identification number of the loan-out company or other
entity.
(ii)Identification of entity type: C Corporation, S Corporation, or Limited Liability
Company with tax type specified.
(iii)Name, address, and social security number of the payee.
(iv)An affirmative statement of whether or not the production company is a related party
to the loan-out company or other entity, and if so, provision of an affidavit stating
under penalty of perjury that the transaction is valued at the same value that an
unrelated party would value the same transaction. If the production company is a
related party to the loan-out company, the report shall also include all of the
following information:
(aa)The ownership structure of the loan-out company or other entity.
(bb)An estimate amount of what the loan-out company or other entity will pay the
payee.
Proposed law retains present law and further provides relative to items to be reported.
Applicable to expenditures occurring after January 1, 2016 for productions which receive
initial certification on or after January 1, 2016.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:114(E) and 164(D))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the
original bill:
1. Change the due date of the annual report from Jan. 31st of each year to on of
before Jan. 31st of each year.
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs
to the engrossed bill
1. Specifies that when an individual receives any payment classified as a production
expenditure in Louisiana that payment shall be classified as Louisiana taxable
income and thus subject to the withholding requirements of state and federal law.
2. Provides for quarterly payments to the Department of Revenue.
3. Provides for reporting requirements.
4. Provides for applicability.
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Prepared by James Benton.