SLS 19RS-394 ENGROSSED
2019 Regular Session
SENATE BILL NO. 125
BY SENATOR WARD
TAX/FRANCHISE/CORPORATE. Provides for a single rate of corporation franchise tax.
(gov sig)
1 AN ACT
2 To amend and reenact the introductory paragraph of R.S. 47:601(A), relative to the rates and
3 brackets of the corporation franchise tax; to eliminate the tax on the first three
4 hundred thousand dollars of taxable capital; to provide for effectiveness; and to
5 provide for related matters.
6 Be it enacted by the Legislature of Louisiana:
7 Section 1. The introductory paragraph of R.S. 47:601(A) is hereby amended and
8 reenacted to read as follows:
9 ยง601. Imposition of tax
10 A. Every domestic corporation and every foreign corporation, exercising its
11 charter, or qualified to do business or actually doing business in this state, or owning
12 or using any part or all of its capital, plant, or any other property in this state, subject
13 to compliance with all other provisions of law, except as otherwise provided for in
14 this Chapter shall pay an annual tax at the rate of one dollar and fifty cents for each
15 one thousand dollars, or major fraction thereof on the first three hundred thousand
16 dollars of taxable capital and at the rate of three dollars for each one thousand
17 dollars, or major fraction thereof, which that exceeds three hundred thousand dollars
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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. 125
SLS 19RS-394 ENGROSSED
1 of taxable capital. Taxable capital shall be determined as hereinafter provided in this
2 Chapter. The tax levied herein is due and payable on any one or all of the following
3 alternative incidents:
4 * * *
5 Section 2. The provisions of this Act shall be applicable to all taxable periods
6 beginning on or after January 1, 2021.
7 Section 3. This Act shall become effective upon signature by the governor or, if not
8 signed by the governor, upon expiration of the time for bills to become law without signature
9 by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
10 vetoed by the governor and subsequently approved by the legislature, this Act shall become
11 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 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))
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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. 125
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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.
Page 3 of 3
Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.