The original instrument and the following digest, which constitutes no part of the
legislative instrument, were prepared by Curry Lann.
DIGEST
SB 31 Original 2021 Regular Session Cathey
Proposed law provides for an individual income tax exemption for gross wages of each taxpayer who
qualifies as a digital nomad for a period of up to two years between January 1, 2022, through
December 31, 2025.
Proposed law requires a taxpayer claiming the digital nomad exemption to maintain domicile in
Louisiana for one calendar year following the establishment of domicile in Louisiana to be eligible
for the exemption.
Proposed law provides "digital nomad" means an individual who:
(1)Establishes domicile in Louisiana after July 1, 2021.
(2)Is considered a covered person with major medical health insurance.
(3)Is self-employed or works full- or part-time for a business with its domicile or primary place
of business outside Louisiana.
(4) Has not been domiciled in Louisiana for any of the prior three years.
(5) Has not been required to file a Louisiana resident or part-year resident individual income tax
return for any of the prior three years.
(6) Performs the majority of employment duties in this state either remotely or at a coworking
space.
(7) Is certified as a "digital nomad" by LED.
Proposed law defines the following terms:
(1) "Covered person" means a policyholder, subscriber, enrollee, or other individual enrolled in
or insured by a health insurance issuer for major medical health insurance coverage.
(2) "Major medical health insurance coverage" means any hospital, health, or medical expense
insurance policy, hospital or medical service contract, health and accident insurance policy,
or any other contract of this type providing comprehensive major medical benefits, including
a group insurance plan, or any policy of family group, blanket, or association health and
accident insurance, a self-insurance plan, an employee welfare benefit plan, or a health
maintenance organization subscriber agreement. The term "major medical health insurance" does not include publicly funded programs, including federal governmental benefit plans,
that are wholly or partially funded by this state.
Proposed law requires a taxpayer claiming the digital nomad exemption to maintain all records
necessary to verify that they meet the requirements of proposed law.
Proposed law requires LED, in consultation with the Dept. of Revenue, to approve applications for
taxpayers seeking certification as digital nomads.
Proposed law requires LED to limit the number of taxpayers eligible for the digital nomad exemption
to 1,000 individuals per year.
Proposed law authorizes LED, in consultation with the Dept. of Revenue, to promulgate rules and
regulations in accordance with the APA.
Proposed law requires LED to monitor the implementation of the provisions of proposed law.
Proposed law requires LED to provide a written evaluation of the individual income tax exemption
for digital nomads and its effectiveness in inducing individuals to locate in Louisiana and present
its findings to the Senate Committee on Revenue and Fiscal Affairs and the House Committee on
Ways and Means by January 1, 2027.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:293(9)(a)(xx) and 297.16)