2017 Regular Session ENROLLED
SENATE RESOLUTION NO. 157
BY SENATOR MORRELL
A RESOLUTION
To urge and request the secretary of the Department of Revenue to reevaluate the taxation
of certain BP settlements issued to oystermen and shrimpers, to request that the
secretary temporarily suspend collection efforts with regard to tax assessed on the
BP payments to oystermen and shrimpers, and to request that the secretary assist
recipients of taxable BP settlement payments with abatements of penalties and
interest and with installment agreements and offers in compromise.
WHEREAS, the April 20, 2010, explosion of the Deepwater Horizon oil rig and
subsequent oil spill into the Gulf of Mexico led to substantial damages, particularly in the
form of property damage and lost income; and
WHEREAS, British Petroleum (BP) has made payments to compensate for property
damage and lost income resulting from the oil spill; and
WHEREAS, many payments received from the Gulf Coast Claim Fund (GCCF),
British Petroleum (BP), and Vessels of Opportunity Program (VOP) as a result of the BP oil
spill were taxable for federal income tax purposes unlike many other disaster related relief
payments; and
WHEREAS, the secretary of the Department of Revenue determined that BP
payments that were taxable for federal income tax purposes were taxable for state income
tax purposes; and
WHEREAS, not all recipients of BP payments that compensated for property damage
received Internal Revenue Service Form 1099 or any other tax form indicating that the
payments were taxable; and
WHEREAS, Louisiana's once thriving oyster and shrimp industries have not yet
recovered from the catastrophic effects of the spill, and many oystermen and shrimpers
remain under significant financial burdens that have been increased due to the income tax,
interest, and penalties that continue to accrue until taxes are paid.
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THEREFORE, BE IT RESOLVED that the Senate of the Legislature of Louisiana
does hereby urge and request the secretary of the Department of Revenue to reevaluate the
taxation of BP payments issued to oystermen and shrimpers.
BE IT FURTHER RESOLVED that the Senate of the Legislature of Louisiana does
hereby urge and request the secretary to temporarily suspend collection efforts with regard
to tax assessed on the BP payments to oystermen and shrimpers while she reevaluates the
taxability of the BP payments.
BE IT FURTHER RESOLVED that after reevaluating the taxability of the BP
payments, should the secretary of the Department of Revenue determine that the payments
are taxable, the Senate of the Legislature of Louisiana does hereby urge and request the
secretary to work with the affected oystermen and shrimpers to abate interest, waive late
filing and delinquent payment penalties, to continue the suspension of collection efforts, and
to assist the affected oystermen and shrimpers with installment agreements or offers in
compromise.
BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
secretary of the Department of Revenue.
PRESIDENT OF THE SENATE
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