The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Leonore Heavey.
DIGEST
SB 125 Engrossed 2019 Regular Session Ward
Present law levies the corporation franchise tax on domestic and foreign corporations exercising their
charter, qualified to do business, or actually doing business in the state. Corporation franchise tax
is also levied on any domestic or foreign corporation owning or using any part of its capital, plant,
or other property in Louisiana.
Present law provides that the tax shall be levied at the following rates:
(1)$1.50 per $1,000 of taxable capital, up to $300,000.
(2)$3.00 per $1,000 of taxable capital above $300,000.
Proposed law eliminates the first bracket of the tax for all taxpayers.
Proposed law provides that no tax will be due on the first $300,000 of taxable capital for all
taxpayers.
Proposed law retains present law tax rate of $3 per $1,000 of taxable capital above $300,000.
Effective for all taxable periods beginning on or after Jan. 1, 2021.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:601(A)(intro para)) Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Revenue and Fiscal Affairs to
the original bill
1. Changes first applicable taxable period from Jan. 1, 2020 to Jan. 1, 2021.
2. Makes technical changes.