The original instrument was prepared by Leonore F. Heavey. The following digest,
which does not constitute a part of the legislative instrument, was prepared by
Benjamin A. Huxen, II.
DIGEST
SB 113 Reengrossed 2017 Regular Session Barrow
Present law establishes the corporation franchise tax. The tax is levied on every domestic and foreign
corporation exercising its charter, qualified to do business, or actually doing business in La. For
purposes of the corporation franchise tax, limited liability companies are treated and taxed in the
same manner that they are treated and taxed for federal income tax purposes.
Present law provides an exemption from the tax for certain limited liability companies.
Proposed law retains present law and adds limited liability companies that file as a Real Estate
Investment Trust for federal income tax purposes and has one hundred percent of its common shares
owned by a tax-exempt organization to the limited liability companies that are exempt from the
franchise tax. Proposed law is limited to limited liability companies that meet the forgoing
requirements as of July 1, 2017.
Effective January 1, 2018.
(Amends R.S. 47:601(C)(1)(c))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the engrossed bill
1. Limits the exemption to limited liability companies that meet the requirements as of
July 1, 2017.