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 795 Engrossed 2016 Regular Session Stokes
Abstract: Requires certain organization of the tax exemptions in the Tax Exemption Budget.
Present law requires the Dept. of Revenue to annually prepare a tax exemption budget detailing the
prior tax years tax exemptions, including whether each exemption is meeting its purpose, whether
the purpose is being achieved in a fiscally effective manner, and whether there are any inadvertent
consequences caused by the tax exemption.
Proposed law retains present law and additionally requires the tax exemptions to be organized in a
schedule as follows:
(1)Agricultural/Rural
(2)Business Environment, including the following:
(a) Inventory Tax Ad Valorem
(b) Business Utilities Sales Tax
(c) Manufacturing Machinery and Equipment
(d) Direct Inputs and Consumables
(3) Corporate Income Tax Formula
(4) Dealers and Vendors Compensation and Discounts
(5) Educational Breaks for Educational Institutions
(6) Educational Breaks for Individuals
(7) Incentives
(8) Louisiana Constitutional Mandates
(9) Non-itemized Sales and Use Tax Exclusions and Exemptions (10) Normal Tax Structure, including the following:
(a) Federal Mandatory
(b) Intergovernment
(c) Interstate Commerce
(d) Net Operating Loss
(e) Normal Severance
(11) Personal Income Tax Formula
(12) Retirement, Disability, and Military
Effective July 1, 2016.
(Amends R.S. 47:1517(B))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Ways and Means to the original
bill:
1. Clarify that the categories in proposed law are in addition to, and not in place of, the
current organization in the tax exemption budget.
2. Make technical changes, including changes to category terminology in proposed law.