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 425 Reengrossed 2017 Regular Session Magee
Abstract: Removes the prohibition on eligibility for the tax credit for ad valorem taxes paid with
respect to vessels in Outer Continental Shelf Lands Act Waters in instances where taxes were
paid under protest.
Present law authorizes an income and corporation franchise tax credit for ad valorem taxes paid
without protest on vessels in Outer Continental Shelf Lands Act Waters which have been certified
by the taxpayer to the assessor as being principally located in such areas within the calendar year
immediately preceding the taxable year of assessment of the vessel.
Proposed law changes present law by removing the restriction on eligibility for the credit for taxes
which have been paid under protest.
Proposed law adds requirements concerning taxpayer notification to the Dept. of Revenue that they
have paid ad valorem taxes under protest, which include the submission of copies of the payment
under protest notice and the lawsuit that was filed. If the taxpayer prevails in the suit against the
political subdivision, the amount of the credit issued under proposed law for ad valorem taxes paid
by the taxpayer that are determined by the court to not be due to the political subdivision shall be
subject to recapture by the department as provided in present law.
Applicable to corporation income tax periods beginning on and after January 1, 2017, and
corporation franchise tax periods beginning on and after January 1, 2018.
Effective July 1, 2017.
(Amends R.S. 47:6006.1(A), (D)(2), and (F))
Summary of Amendments Adopted by House
The House Floor Amendments to the engrossed bill:
1. Add a requirement for taxpayer notice to the Dept. of Revenue if they pay ad valorem
taxes under protest.
2. Add authorization for recapture by the Dept. of Revenue of amounts paid in tax credits
if the taxpayer prevails in their lawsuit for taxes paid under protest.