SLS 17RS-417 REENGROSSED
2017 Regular Session
SENATE BILL NO. 113
BY SENATOR BARROW
TAX EXEMPTIONS. Provides relative to entities that are exempt from the corporation
franchise tax. (1/1/18)
1 AN ACT
2 To amend and reenact R.S. 47:601(C)(1)(c), relative to the corporation franchise tax; to
3 provide for exemptions from franchise tax; to provide for an effective date; and to
4 provide for related matters.
5 Be it enacted by the Legislature of Louisiana:
6 Section 1. R.S. 47:601(C)(1)(c) is hereby amended and reenacted to read as follows:
7 ยง601. Imposition of tax
8 * * *
9 C.(1) As used herein the term "domestic corporation" shall mean and include
10 any of the following:
11 * * *
12 (c) Nothing in this Subsection shall extend franchise tax liability to any of the
13 following:
14 (i) A limited liability company qualified and eligible to make an election to
15 be taxed in accordance with the provisions of 26 U.S.C. Subtitle A, Chapter 1,
16 Subchapter S on the first day of its fiscal or annual year or to any other entity that
17 was acquired before January 1, 2014, but not earlier than January 1, 2012, by an
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 113
SLS 17RS-417 REENGROSSED
1 entity that was taxed pursuant to 26 U.S.C., Subtitle A, Chapter 1, Subchapter S.
2 (ii) A limited liability company that files as a Real Estate Investment
3 Trust for federal income tax purposes and has one hundred percent of its
4 common shares owned by a tax-exempt organization. This provision is limited
5 to limited liability companies that meet the forgoing requirements as of July 1,
6 2017.
7 * * *
8 Section 2. This Act shall become effective on January 1, 2018.
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.
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.