The Advantous team was actively involved in tracking all key tax-related measures in the legislative fiscal session of 2021. The Government Affairs Team specifically worked on and tracked important tax reform instruments to ensure a pro-business environment for our clients and a more competitive business environment for the state of Louisiana. The session adjourned on Thursday, June 10th.
The following is a summary of all key tax measures that were passed by the legislature:*
Tax Reform:
HB 199 by Speaker Schexnayder (Constitutional Amendment) provides for the State and Local Streamlined Sales and Use Tax Commission. (Act 131)
HB 292 by Rep. Riser reduces the corporate income tax structure to three brackets and sets the rates at 3.5%, 5.5% and 7.5%. (Act 369)
HB 278 by Rep. Bishop and Sen. Allain reduces individual income tax rates from 2% to 1.85%, 4% to 3.5% and 6% to 4.25%. (Act 395)
SB 159 by Sen. Allain and Rep. Bishop (Constitutional Amendment) reduces the maximum rate of individual income tax to 4.75% and eliminates federal income tax deduction. (Act 134)
SB 161 by Sen. Allain eliminates franchise tax on the first $300K on taxable capital and reduces the rate to $2.75 per $1,000 of taxable capital above $300K. (Act 389)
SB 157 by Sen. Allain and Rep. Bishop exempts certain mobile workers from individual income tax. (Act 383)
SB 160 by Sen. Allain amends state partnership reporting system relative to federal audit adjustments. (Act 287)
(All constitutional amendments will be proposed on October 9, 2021 election)
Sales Tax:
HB 7 by Rep. Freeman provides for a sales tax exemption for feminine hygiene products and diapers. (Act 449)
HB 50 by Rep. Stefanski provides a state tax exclusion for certain re-leases or re-rentals. (Act 7)
HB 148 by Rep. Echols exempts certain educational institutions from state sales tax on the lease or rental of certain property. (Vetoed)
SB 6 by Sen. Cathey exempts utilities used by commercial farmers for storage from state sales tax. (Act 53)
SB 77 by Sen. Mizell exempts purchases of certain school buses from sales tax. (Act 53)
SB 80 by Sen. Cloud reallocates a portion of the state sales tax on room rentals in St. Landry Parish to the Liberty Theater in Eunice. (Act 284)
SB 125 by Sen. Morris exempts certain infused prescription drugs from local sales tax. (Act 286)
SB 172 by Sen. Ward reinstates the state sales tax exemption on construction materials used by Habitat for Humanity affiliates. (Act 299)
Income Tax:
HB 12 by Rep. White creates an individual income tax checkoff for the STAR org. (Act 3)
HB 362 by Rep. Orgeron creates an individual income tax checkoff for the La. State University Agricultural Center Grant Walker Educational Center. (Act 228)
HB 424 by Rep. McFarland establishes an individual income tax deduction for taxpayers who adopt a child from foster care. (Act 378)
SB 5 by Sen. Foil excludes military survivor benefit plans payments from state individual income tax. (Act 52)
SB 11 by Sen. Talbot provides an individual and corporation income tax exemption for state and federal COVID-19 relief benefits. (Act 54)
SB 31 by Sen. Cathey provides an exemption from state individual income tax for digital nomads. (Act 387)
SB 36 by Sen. Reese provides relative to net operation loss deduction on Louisiana corporation income. (Act 459)
SB 46 by Sen. Lambert increases the amount of compensation excluded from tax table income for certain active duty members of the armed forces. (Act 161)
SB 239 by Sen. Johns modifies the federal income tax deduction for those affected by 2021 hurricanes. (Act 296)
Property Tax:
HB 143 by Rep. Willard (Constitutional Amendment) limits the amount of the increase in the assessed value of certain property in Orleans Parish following a reassessment. (Act 129)
HB 573 by Rep. Stefanski provides for the administration, review, and adjudication of ad valorem tax assessments. (Act 343)
SB 154 by Sen. Smith (Constitutional Amendment) provides for the adjustment of ad valorem tax millages. (Act 133)
SB 165 by Sen. Smith provides for the adjustment of ad valorem millages. (Act 390)
Tax Credits and Incentive Programs:
HB 146 by Rep. Hilferty establishes an income tax credit following the delivery of a stillborn child. (Act 467)
HB 289 by Rep. McFarland establishes an income and franchise tax credit for Class II & III railroads. (Vetoed)
HB 301 by Rep. Landry establishes an income tax credit for certain pregnancy-related deaths. (Act 470)
HB 445 by Rep. Bourriaque changes the sound recording investor tax credit into a refundable tax credit. (Act 401)
HB 678 by Rep. Duplessis provides for the Louisiana Work Opportunity Tax Credit Program. (Act 453)
HB 680 by Rep. Hughes establishes the Louisiana Youth Jobs Tax Credit Program. (Act 454)
SB 8 by Sen. Peacock accelerates the sunset date for the tax credit on alternative fuel vehicles. (Act 385)
SB 45 by Sen. Harris extends the sunset date for Ports of Louisiana tax credits. (Act 81)
SB 217 by Sen. Harris provides for the Louisiana Import Tax Credit. (Act 292)
HCR 40 by Speaker Schexnayder directs LED to suspend certain programs for certain unity scale solar projects.
Severance Tax:
HB 26 by Rep. McCormick provides with respect to the severance tax exemption for stripper wells. (Vetoed)
SB 171 by Sen. Allain provides for severance tax exemptions and site-specific trust funds for certain orphaned wells. (Act 391)
Infrastructure:
HB 514 by Rep. Magee dedicates the existing tax on the sales and lease of motor vehicles to the TTF. (Act 486)
Other:
HB 94 by Rep. Fontenot extends authority for imposition of certain fees levied by the Louisiana Tax Commission for the assessment of certain properties. (Act 62)
HB 697 by Rep. Stefanski provides for sports wagering. (Act 80)
HCR 98 by Rep. Beaullieu expresses the legislature’s opposition to a disproportionate increase in the taxation of oil and gas industries.
SB 81 by Sen. Luneau establishes reporting requirements for entities using certain service providers. (Act 285)
SB 87 by Sen. Connick (Constitutional Amendment) provides for the taxing authority of levee districts. (Act 132)
SB 88 by Sen. Connick authorizes levee boards to spend funds generated from one or more levee districts in another district that benefits an entire levee authority. (Act 90)
SB 149 by Sen. Harris provides for a special election on October 9, 2021 for all 2021 constitutional amendments. (Act 461)
SB 167 by Sen. Allain provides for the transfer and use of funds from the American Rescue Plan Act to the Oilfield Site Restoration Fund. (Act 298)
SB 185 by Sen. Allain provides for the regulation of leases of land for solar farms. (Act 301)
If you have any questions about the above legislation and how it could affect your business, please do not hesitate to contact Jason DeCuir, Kristian Gerrets, Savannah Kirk, or Mary Robinson of our Government Affairs Team.
*All instruments have been signed by the Governor unless otherwise noted.