SLS 17RS-205 ORIGINAL
2017 Regular Session
SENATE BILL NO. 32
BY SENATOR MORRELL
TAX/AD VALOREM. Provides for the sunset of the tax credit for ad valorem taxes paid
on natural gas. (gov sig)
1 AN ACT
2 To amend and reenact R.S. 47:6006(A)(2) and to enact R.S. 47:6006(C)(2)(vi), relative to
3 tax credits; to sunset the income and franchise tax credit for ad valorem taxes paid
4 on natural gas in storage; to provide for definitions; to provide for an effective date;
5 and to provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:6006(A)(2) is hereby amended and reenacted and R.S.
8 47:6006(C)(2)(vi) is hereby enacted to read as follows:
9 ยง6006. Tax credits for local inventory taxes paid
10 A.(1) * * *
11 (2) There shall be allowed a credit against any Louisiana income or
12 corporation franchise tax for ad valorem taxes paid on or before December 31,
13 2017, to political subdivisions on natural gas held, used, or consumed in providing
14 natural gas storage services or operating natural gas storage facilities.
15 * * *
16 C. For purposes of this Section, the following terms shall have the meanings
17 ascribed to them:
Page 1 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions. SB NO. 32
SLS 17RS-205 ORIGINAL
1 * * *
2 (2) * * *
3 * * *
4 (b) "Inventory" shall not include the following:
5 * * *
6 (vi) After December 31, 2017, natural gas held, used, or consumed in
7 providing natural gas storage services or operating natural gas storage facilities.
8 * * *
9 Section 2. This Act shall become effective upon signature by the governor or, if not
10 signed by the governor, upon expiration of the time for bills to become law without signature
11 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
12 vetoed by the governor and subsequently approved by the legislature, this Act shall become
13 effective on the day following such approval.
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 32 Original 2017 Regular Session Morrell
Present law authorizes an income and corporation franchise tax credit for ad valorem taxes
paid on certain inventory including natural gas held or used for storage.
Proposed law sunsets the provision of the credit that authorizes the credit for natural gas held
or used for storage.
Present law provides a list of items that will not be considered inventory for purposes of the
tax credit.
Proposed law adds natural gas held or used for storage after Dec. 31, 2017 to the list of items
that are not considered to be inventory for purposes of the credit.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:6006(A)(2); adds R.S. 47:6006(C)(2)(vi))
Page 2 of 2
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.