Provides for credits for certain ad valorem taxes paid for the 2020 tax year. (gov sig) (Item #26) (EN SEE FISC NOTE GF RV See Note)
Impact
By allowing the treatment of late payments as timely, SB52 seeks to impact the financial liabilities of businesses and individuals in Louisiana adversely affected by the COVID-19 pandemic during the 2020 tax year. The flexibility to claim tax credits can lead to a significant reduction in total tax liabilities for affected taxpayers who might have struggled to meet tax deadlines. This could foster economic recovery by providing immediate financial relief to taxpayers facing hardships during the pandemic, demonstrating responsiveness in public policy amidst crisis.
Summary
Senate Bill 52 (SB52) aims to provide tax credits related to ad valorem taxes paid for the 2020 tax year. The bill allows taxpayers who pay these taxes after the due date of December 31, 2020, to request that their payments be considered timely if made by April 15, 2021. This regulatory change intends to ease financial burdens on taxpayers by ensuring that they can benefit from tax credits despite possible delays in tax payments. The bill also specifies limitations on how these credits can be claimed to prevent double dipping into credits for different tax years.
Sentiment
The sentiment surrounding SB52 appears to be supportive, especially from the business community and taxpayers who have incurred tax liabilities for that year. Legislators recognizing the unique circumstances leading to these potential financial burdens largely championed the bill, reflecting a collaborative effort to provide relief. There may be less enthusiasm among those wary of increasing fiscal responsibilities for the state or those who believe such measures can set precedents for future tax policies.
Contention
While the bill is generally well-received, notable contentions may arise regarding its long-term implications for state funding and fiscal health. Critics may argue that providing these tax credits could impact the state's revenue, particularly if a significant number of taxpayers elect the relief option. Therefore, while SB52 proposes immediate benefits to taxpayers, it raises questions about fiscal sustainability and equity in tax policy administration moving forward.
Provides for the carry forward rather than the refund of a certain portion of the tax credits for ad valorem taxes paid to local governments (EN +$129,000,000 GF RV See Note)
Provides for a flat rate for purposes of calculating corporate income tax and terminates certain corporate income tax exemptions, deductions, and credits (Item #4) (EN SEE FISC NOTE RV See Note)
Provides for the carry forward rather than the refund of a certain portion of the tax credit for ad valorem taxes paid on inventory. (gov sig) (Item #47) (EN +$17,300,000 GF RV See Note)
Reduces the amount of certain ad valorem tax credits and provides for the carry forward rather than the refund of a certain portion of excess credit amounts (Item #31) (EG +$48,000,000 GF RV See Note)
Repeals the corporate income tax and franchise taxes and prohibits certain corporate taxpayers from claiming certain refundable tax credits (Items #43 & 44) (OR DECREASE GF RV See Note)
Provides for carry forward rather than a refund of tax credits from ad valorem taxes paid to local governments. (gov sig) (OR +$40,000,000 GF RV See Note)
Reduces the amount of certain ad valorem tax credits and provides for the carryforward rather than the refund of a certain portion of excess credit amounts (Item #31) (EG +$48,000,000 GF RV See Note)
Provides for the reduction of the amount of certain ad valorem tax credits and for carryforward rather than the refund of certain portion of excess credit amount. (gov sig) (OR +$294,000,000 GF RV See Note)
Provides for the reduction of the amount of certain ad valorem tax credits and provides for the carryforward rather than the refund of a certain portion of excess credit amounts. (gov sig) (EG +$253,000,000 GF RV See Note)