HOUSE NOTES

Louisiana House of Representatives

Communications Office
2016 First Extraordinary Session
Week Three, March 4, 2016

At adjournment on Friday, March 4,

the seventeenth day of the 2016 First
Extraordinary Session, 154 House bills and 48
Senate bills had been introduced.
Three bills are headed to the
governor's desk for executive approval:
*
House Bill 7 increases the amount of
the corporate income exclusion for dividend
income to 100 percent;
*
Senate Bill 1 adds college tournament
or championship to the definition of a
qualified major event for purposes of the
Major Events Incentive Program; and
*
Senate Bill 4 provides for the deposit
and use of funds received from the Deepwater
Horizon Economic Damages Settlement.
A brief description of some of the
other bills that generated public interest
follows.

ALCOHOL TAX
*
House Bill 28, which passed the House
72-27, reduces the amount of the discount for
accurately reporting and remitting excise taxes
on alcoholic beverages and beer.
APPROPRIATIONS
*
The House rejected Senate
amendments to House Bill 122, which makes
supplemental appropriations and reductions to
appropriations for Fiscal Year 2015-16.

CIGARETTE/TOBACCO
*
House Bill 14, which passed the House
75-26, raises the cigarette tax rate from 86
cents to $1.08 per 20-pack, effective April 1.
*
House Bill 18, which passed the House
67-33, reduces the amount of the discount for
accurately reporting and remitting excise taxes
on certain tobacco products and the discount
for stamping cigarettes by 1 percent.
CONTRACTS
*
House Concurrent Resolution 2, which
has completed the legislative process, directs
the commissioner of administration and other
statewide elected officials to review state
contracts to identify any that can be
terminated and report their initial findings to
the Joint Legislative Committee on the Budget
by March 17, 2016.
CORPORATE FRANCHISE TAX
*
House Bill 19, which passed 79-19,
expands the definition of "domestic
corporation" for purposes of the corporate
franchise tax.
The provisions of HB19 would not
extend franchise tax liability to any limited
liability company.
ENTERPRISE ZONE
*
House Bill 71, which passed the House
100-1, reduces the amount of certain
Enterprise Zone tax credits, removes certain

hotels from eligibility, allows an increase in

the job credit from $2,500 to $3,500 per net
new job for those employees on SNAP, WIC
or Medicaid, unemployable by traditional
standards or lacking basic skills, and caps the
sales tax rebate/investment tax credit at
$100,000 per net new job.
FUNDS
*
Under present law, the Office of Motor
Vehicles is authorized to collect fees related to
suspended operator's licenses and auto
insurance violations. After 60 days these fees
are considered final delinquent debt and
referred to the Office of Debt Recovery within
the Department of Revenue.
House Bill 111, which passed 100-0,
eliminates the Debt Recovery Fund and
requires that the collected monies be
transferred to the state agency which referred
the delinquent debt within 30 days. HB111
additionally provides that any monies
collected for delinquent debt as a result of
nonpayment of tax liabilities, after deposit
into the state general fund, the first $5 million
shall be appropriated by the legislature
beginning in Fiscal Year 2013-14, and for four
consecutive fiscal years thereafter, to the
Office of State Police.
SALES TAX
*
The full House rejected Senate
amendments to House Bill 62, which levies an
additional 1 percent state sales and use tax.
The tax shall be levied beginning April 1,
2016, and will cease to be effective Oct. 1,
2017.
TAXES/CORPORATE INCOME
*
House Bill 95, which passed the House
83-16, eliminates the state income tax
deduction for federal income taxes paid and
applies only to corporate returns.
*
House Bill 99, approved by the House
85-6, changes the apportionment percent for

apportionable income derived for certain

transportation and service industry sectors to
a single ratio calculation.
TAX CREDITS
*
House Bill 87, which has completed
the legislative process, limits the tax credits to
no more than 95 percent of the qualifying
credit for two premium tax years, 2016 and
2017, for all payers except life insurance
companies with total admitted assets no
greater than $15 million.
TAX/SALES -USE
*
The full House moved to concur in
Senate amendments to House Bill 30, which
expands the definition of dealer to include
internet sales for state and local sales tax
purposes,
*
The full House rejected Senate
amendments to House Bill 59, which expands
the definition of a hotel for sales tax purposes.