HLS 19RS-3494 ORIGINAL
2019 Regular Session
HOUSE CONCURRENT RESOL UTION NO. 117
BY REPRESENTATIVE STOKES
TAX/INCOME-CREDIT: Provides for the legislative intent of Act No. 6 from the 2018
Second Extraordinary Session of the Legislature
1 A CONCURRENT RESOL UTION
2To express the intent of the legislature regarding Act No. 6 of the 2018 Second
3 Extraordinary Session of the Legislature.
4 WHEREAS, R.S. 24:177(B)(2)(b) provides that the "legislature may express the
5intended meaning of a law in a duly adopted concurrent resolution, by the same vote and,
6except for gubernatorial veto and time limitations for introduction, according to the same
7procedures and formalities required for enactment of that law"; and
8 WHEREAS, during the 2018 Second Extraordinary Session of the Legislature, Act
9No. 6 was enacted into law which imposed restrictions on the credit for taxes paid to other
10states, including a restriction which limited the credit to situations in which the other state
11to which the taxes were paid allows a similar credit for Louisiana income taxes paid on
12income derived from property located in, or from services rendered in, or from business
13transacted in Louisiana; and
14 WHEREAS, Act No. 6 of the 2018 Second Extraordinary Session of the Louisiana
15Legislature enacted R.S. 47:33(A)(7) which provides an individual income tax deduction for
16an individual partner, member, or shareholder's proportionate share of an entity-level tax
17paid to another state that is based solely upon net income included in the entity's federal
18taxable income without any capital component; and
19 WHEREAS, on December 5, 2018, the Louisiana Supreme Court rendered its
20decision in the case of Smith v. Robinson, La. S. Ct. Dkt. No. 2018-CA-0728, and ruled that
21the provisions of R.S. 47:33(A)(4) were unconstitutional, and
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HCR NO. 117
1 WHEREAS, the Louisiana Supreme Court's decision in Smith v. Robinson left open
2the possibility that individual income taxpayers could claim both the credit and the deduction
3for taxes paid to other states under certain situations for the same taxes paid to other states;
4and
5 WHEREAS, allowing both the credit and the deduction would lead to an absurd
6result because both the credit and deduction are calculated based on the same taxes paid to
7the other states.
8 THEREFORE, BE IT RESOLVED that the Legislature of Louisiana does hereby
9express its intent regarding the meaning of the language in Act No. 6 of the 2018 Second
10Extraordinary Session of the Legislature with respect to the tax credit for taxes paid to other
11states to allow the deduction in R.S. 47:33(A)(7) to those taxpayers who were no longer
12eligible for the credit found in R.S. 47:33(A) because of the various restrictions in Act No.
13109 of the 2015 Regular Session of the Louisiana Legislature. The Legislature of Louisiana
14does hereby clarify that it intends that the deduction in R.S. 47:33(A)(7) shall be in lieu of
15and not in addition to the credit found in R.S. 47:33(A), and that the credit and the deduction
16not be allowed for the same taxes paid to another state for tax periods beginning on or after
17January 1, 2018.
18 BE IT FURTHER RESOLVED that a copy of this Resolution be transmitted to the
19secretary of the Department of Revenue.
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)]
HCR 117 Original 2019 Regular Session Stokes
Present law (R.S. 24:117(B)(2)) authorizes the legislature to express the intended meaning
of a law in a duly adopted concurrent resolution, by the same vote and, except for
gubernatorial veto and time limitations for introduction, according to the same procedures
and formalities required for enactment of that law.
Present law (R.S. 47:33(A)(7)) which was enacted pursuant to Act No. 6 of the 2018 2nd
E.S. of the Legislature provides for an individual income tax deduction for an individual
partner, member, or shareholder's proportionate share of an entity-level tax paid to another
state that is based solely upon net income included in the entity's federal taxable income
without any capital component.
Proposed resolution expresses the intent of the legislature regarding Act No. 6 of the 2018
2nd E.S. of the Legislature with respect to the tax credit for taxes paid to other states to allow
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HCR NO. 117
the deduction in R.S. 47:33(A)(7) to those taxpayers who were no longer eligible for the
credit found in R.S. 47:33(A) because of the various restrictions in Act No. 109 of the 2015
R.S. of the Legislature. The Legislature clarifies that it intends that the deduction found in
R.S. 47:33(A)(7) shall be in lieu of and not in addition to the credit found in R.S. 47:33(A),
and that the credit and the deduction not be allowed for the same taxes paid to another state
for tax periods beginning on or after Jan. 1, 2018.
Requires a copy of the Resolution be transmitted to the secretary of the Dept. of Revenue.
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