Provides for the Legislative intent of Act No. 425 from the 2015 Regular Session of the Legislature (OR SEE FISC NOTE GF RV)
Impact
The resolution under HCR52 asserts that businesses making payments for services associated with production activities will be required to withhold Louisiana state income tax at the highest rate on compensation paid to individuals classified under 'above the line services.' This regulation intends to ensure that all income derived from such production activities is treated as taxable income by the state, thereby enhancing the state's ability to collect tax revenue from the increasingly vibrant film industry.
Summary
House Concurrent Resolution 52 (HCR52) emphasizes the legislative intent regarding Act No. 425 from the 2015 Regular Session, specifically dealing with taxation related to motion picture production. The resolution clarifies how income received from services directly tied to production activities is regarded under Louisiana law, focusing on the tax implications for individuals involved in these activities, particularly those categorized as performing 'above the line services.' This classification includes essential roles within film and television production, such as directors, producers, and screenwriters.
Sentiment
Sentiment surrounding HCR52 appears supportive among legislative members who view this clarification as essential for enforcement of tax laws in the context of the film industry. Legislators highlight the significance of ensuring that individuals earning income from production activities are accurately paying state taxes, which is seen as beneficial for the state's economy. However, concerns may arise among those worried about the implications of increased tax responsibilities on such industries, particularly about attracting more production companies to Louisiana.
Contention
While HCR52 primarily serves to clarify existing legislation, points of contention may revolve around how the tax withholding requirements could potentially affect the attraction of new film productions to Louisiana. Critics might argue that higher tax burdens could dissuade filmmakers from choosing Louisiana as a production location, while proponents counter that fair tax collection is vital for the state's financial health. Overall, the resolution seeks to balance the interests of revenue generation with the operational needs of the motion picture industry.
Provides relative to the legislative intent regarding the effectiveness provisions of the Act that originated as House Bill No. 646 of the 2017 Regular Session of the Legislature
Amends Act No. 125 of the 2015 Regular Session of the Legislature to provide relative to income and corporation franchise tax credits (Item #10) (OR INCREASE GF RV See Note)
Suspends annual state sales tax holidays until 60 days after adjournment of the 2016 Regular Session of the Legislature (EG1 +$3,300,000 GF RV See Note)