RÉSUMÉ DIGEST
ACT 432 (SB 9) 2023 Regular Session Foil
Existing law levies a corporation franchise tax on domestic corporations and foreign
corporations that exercising their charter, or qualified to do business or actually doing
business in this state, or owning or using any part or all of their capital, plant, or any other
property in this state.
Existing law provides that the term "domestic corporation" includes business organizations
organized under the laws of this state which have privileges, powers, rights, or immunities
not possessed by individuals or partnerships.
Existing law further provides that the term "domestic corporation" includes all entities taxed
as corporations for federal income tax purposes.
Existing law makes an exception for certain entities that would otherwise meet the definition
of "domestic corporation" that are organized as limited liability companies (LLCs) that were
qualified and eligible to file as a Subchapter S corporation or were acquired by an entity
taxed as a Subchapter S corporation.
New law provides for an additional exception for LLCs filing as a real estate investment trust
(REIT) for federal income tax purposes if 100% of the LLC's common stock is owned by a
tax-exempt organization provided that both the stock ownership and REIT filing
requirements were met no later than July 1, 2023.
Effective June 27, 2023.
(Amends R.S. 47:601(C)(1)(intro para) and (c))