August 2024

Annual Second Amendment Weekend Sales Holiday: The Louisiana Department of Revenue (Department) recently issued Revenue Information Bulletin No. 24-014 announcing that 2024 Annual Second Amendment Weekend Sales Holiday begins September 6, 2024 and ends September 8, 2024. The Department states in this Bulletin that the Holiday provides a state and local sales and use tax exemption on any consumer purchase of firearms, ammunition, and hunting supplies occurring the first consecutive Friday through Sunday of each September; but the exemption does not apply to business or commercial purchases. Firearms eligible for the exemption, according to the Bulletin, include shotguns, rifles, pistols, revolvers or other handguns which may be legally sold or purchased in Louisiana. Additionally, and according to the Bulletin, ammunition fired from a gun or firearm is eligible for the tax exemption, as is hunting supplies which are used and designed for hunting are eligible for the exemption. A list of eligible hunting supplies is set forth in the Bulletin, together with a list of purchases not eligible for the exemption. Further, the Bulletin sets forth conditions for the exemption, together with special provisions pertaining to the exemption. The Department sets forth contact information in this Bulletin for any questions. More information can be found here.

May 2024

Natural Gas Severance Tax Rate Effective July 1, 2024: The Louisiana Department of Revenue (Department) recently issued Revenue Information Bulletin No. 24-011 dealing with the natural gas severance tax rate that is effective July 1, 2024, through June 30, 2025. According to that Bulletin, the natural gas severance tax rate for that period has been set at 9.8 cents (currently 25.1 cents through June 30, 2024) per thousand cubic feet (MCF) measured at a base pressure of 15.025 pounds per square inch absolute and at the temperature base of 60 degrees Fahrenheit. The Department notes in this Bulletin that such tax rate is set each year by multiplying the natural gas severance tax base rate of 7 cents per MCF by the gas base rate adjustment determined by the Secretary of the Department of Energy and Natural Resources, as further addressed in this Bulletin. The Department did note in this Bulletin that gas produced from an inactive or orphan gas well is subject to a reduced severance tax rate equal to fifty percent or twenty-five percent of the severance tax rate, respectively; which according to the Bulletin would produce a tax rate of 4.9 cents per MCF for inactive gas and 2.45 cents per MCF for orphan gas effective during that July 1, 2024, through June 30, 2025 period. This Bulletin also contains sources for questions regarding the natural gas severance tax rate. More information can be found here.

April 2024

Firearm Safety Device Credit: The Louisiana Department of Revenue (Department) has recently issued Revenue Information Bulletin No. 24-009 dealing with the firearm safety device credit for individual income tax purposes. The Bulletin explains that the firearm safety device credit is a nonrefundable individual income tax credit that may be claimed for the purchase of one or more firearm safety devices in a single transaction. To qualify, the firearm safety device(s) must be listed in La R.S. 47:927.24(A)(3) and be purchased from a dealer who is federally licensed to sell firearms, that is, a dealer must possess a federal firearm license. The Bulletin notes that the amount credited is equal to the amount of the purchase price including the local state sales and use taxes, limited to $500; and because the credit is limited to a single transaction; the purchase price of firearm safety devices bought in separate transactions cannot be combined to calculate the amount of the credit. In other words, if a Taxpayer purchases more than one qualifying firearm safety device in a single year in separate transactions, the Taxpayer may only seek a credit for one of the transactions; but if the Taxpayer purchases multiple qualifying firearm safety devices in one transaction, that Taxpayer may seek a credit for each device purchased until hitting the $500 cap. The Bulletin also notes that individuals who have a Louisiana income tax liability may claim the credit on either Form IT-504, Resident Individual Income Tax Return, or Form IT-540B, Nonresident Individual Income Tax Return. A copy of the receipt listing the firearm device and its purchase price must be attached to the return as documentation of the credit. The Bulletin then sets forth a number of Frequently Asked Questions pertaining to this credit. More information can be found here.

March 2024

Partnership Filing Requirements for 2023: On February 6, 2024, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 24-008 regarding the partnership filing requirements for the 2023 tax year, and in particular to address the administrative filing relief for eligible partnerships pending finalization of the rulemaking process. As stated by the Department in this Bulletin, partnerships are required to file an informal return with the Department using Form IT-565, and include all required schedules and attachments. The Department then noted that except as provided otherwise in the Bulletin, a return is required for all partnerships doing business in Louisiana or any partnership deriving any income from Louisiana sources. As also noted by the Department in this Bulletin, an eligible partnership is exempt from filing an estate partnership return if one or more of the following provisions apply: (i) the partnership's gross receipts were less than $250,000 and the partnership's total assets at the end of the tax year were less than $1,000,000; (ii) the partnership is not required to file IRS Form 1065 with the Internal Revenue Service; and (iii) the partnership elected to be taxed as a corporation with the IRS and files Form CIFT-620 with the Department. Nevertheless, and regardless of the foregoing exceptions, the following two types of partnerships are required to file with the Department: (x) partnerships that are required to attach Schedule 6922, Louisiana Composite Partnership to the IT-565; and (y) partnerships that have any partners or related parties with an approved pass-through entity election on file with the Department. More information can be found here.

February 2024

Guidelines for Ending PTE: Louisiana law allows entities taxed as S corporations or partnerships for federal income tax purposes (PTEs) to elect to be taxed as if they were C corporations for state income tax purposes. Ending that election is the subject of recently introduced guidelines by the Louisiana Department of Revenue (Department), as reported in the Louisiana Register December 2023 issue. These changes follow the implementation of Act 450, effective from August 1, 2023, which presents an alternative method for PTEs to retract their decision to be taxed at the entity level. Under the previous regulations, a PTE's revocation of its election required a formal written request to the Department, supported by the consent of a minimum of 50 percent of its owners. The newly proposed regulations suggest a streamlined termination procedure via Form R-6983, Termination of the Pass-Through Entity Tax Election, allowing an individual representing the entity to file for termination. This process necessitates either the written consent of owners representing at least half of the entity's capital account balances or a significant alteration in circumstances, excluding tax increases resulting directly from the election. Post-termination, the entity, or any successor, is barred from reapplying for the election for a period of five tax years. Furthermore, Act 450 extends the passthrough income exclusion to include estates and trusts that are PTE shareholders, permitting individual beneficiaries to omit this income on their state income tax returns in Louisiana. More information can be found here.

January 2024

Clarification of Disaster Extensions on the Automatic Filing Extensions: The Louisiana Department of Revenue (Department) recently issued Revenue Information Bulletin No. 23-029 which is intended to clarify the effects of disaster extensions on the automatic filing extensions granted for state individual income, fiduciary income, partnership income, and corporation income taxes. With respect to individual, fiduciary, and partnership income tax extensions, the Department states in this Bulletin that effective for tax years beginning on or after January 1, 2022, taxpayers are granted an automatic six-month extension of time to file these returns; and, for qualifying taxpayers with an extended date within a disaster extension period, the automatic extended due date to file is the final date of the disaster extension period or the automatic due date, whichever is later. With respect to taxpayers filing corporation income tax returns, the Department states in this Bulletin that for tax years beginning on or after January 1, 2022, taxpayers are granted an automatic extension to file the corporation income tax return if the taxpayer timely requests an extension of time to file the federal corporation income tax return for the same taxable period; and in such case, the extension is six months or to the extended due date of the federal return, whichever is later. Examples are given in the Bulletin with respect to the extension for individual, fiduciary, partnership and corporation income tax extensions. With respect to corporation franchise tax extensions, the Department states in the Bulletin that corporation income tax extensions apply to taxpayers filing a corporation franchise tax return in conjunction with the corporation income tax return. However, as to taxpayers filing a franchise tax-only return with an original due date within the disaster extension period, the Department states in the Bulletin that the extended due date will be the original due date or the final date of the disaster extension period, whichever is later. Contact information is set forth in this Bulletin for questions pertaining to extensions. More information can be found here.

November 2023

No Availability of Extension When Filing Only a Franchise Tax Return: The Louisiana Department of Revenue (Department) updated, as of November 6, 2023, the Frequently Asked Questions regarding extensions for business tax returns. In that regard, Louisiana Revised Statutes 47:612 and 47:287.614(D) provide that the Department may grant an extension for filing corporation income and franchise tax returns. The Department previously issued information regarding the corporation income and franchise tax return stating that Louisiana law allows the granting of an automatic extension of six months for filing the corporation income tax return if the taxpayer timely requested an extension for federal tax purposes. According to this Q&A update, and as to the question of "How do I receive a filing extension if I am filing a franchise tax return only?" the response is that such extension only applies to corporation franchise tax if the taxpayer is also filing a corporation income tax return; but that a taxpayer who files a corporation franchise tax return without a corporate income tax return is ineligible for filing an extension pursuant to Louisiana Revised Statutes 47:612. More information can be found here.

October 2023

Income Tax Return Filing Deadlines Extended for Seawater Intrusion: On October 6, 2023, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 23-026 (Bulletin) granting an automatic filing extension to taxpayers whose primary residences, principal places of business, critical tax records, or paid tax advisers are located in parishes within the federal disaster declaration as a result of seawater intrusion that began on September 20, 2023. The declared disaster areas, as referenced in this Bulletin, for Louisiana include Jefferson, Orleans, Plaquemines, and St. Bernard Parishes. According to this Bulletin, automatic extensions are based on the taxpayer's location address on file with the Department. If a taxpayer's location address is not within the parishes listed above, the Department stated that the taxpayer may nevertheless be eligible for penalty relief although an automatic extension does not apply. The Department noted in this Bulletin that no late filing penalty shall be due if a tax return is submitted by the extended deadline. For individual, fiduciary, and partnership income tax extensions, where the original due date is May 15, 2023, and the extended due date is November 15, 2023, with a calendar year or fiscal year due date or extended due date on or after September 20, 2023, and before February 15, 2024, this automatic extension for qualifying taxpayers would be February 15, 2024. For corporate income tax extensions, qualifying taxpayers with a calendar or fiscal year extended due date on or after September 20, 2023, and before February 15, 2024, the automatic extended due date is February 15, 2024. A similar extension applies to taxpayers filing a corporation franchise tax return in conjunction with the corporation income tax return. Terms and conditions apply with respect to this automatic extension, and more information can be found here.

September 2023

Credit for Taxes Paid to Other States: On August 17, 2023, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 23-024 addressing the credit allowance for taxes paid in other states in regard to computing the Louisiana individual income tax. Initially, the Department noted that certain safeguards regarding the credit allowance were established in the 2015 Regular Session of Legislature, and subsequently, the Legislation provided certain clarifications as a result of legislation enacted in the 2023 Regular Session. The purpose of this Revenue Information Bulletin, according to the Department, is to provide additional guidance concerning eligibility and the calculation of the credit in light of changes made by the 2023 enactment. The Department then notes that, following such 2023 enactment, Louisiana residents with out-of-state income may take a credit against the Louisiana individual income taxes for the amount of tax paid to the other state on that out-of-state income subject to the following safeguards: (i) the credit is limited to the amount of Louisiana income tax that would have been imposed if the income earned in the other state had been earned in Louisiana; (ii) the credit is not allowed for tax paid on income not subject to tax in Louisiana; (iii) the credit is not allowed for income taxes paid to a state that allows a non-resident a credit against income taxes imposed by that state for taxes paid in the state of residence; and (iv) a taxpayer cannot claim both a credit and a deduction under Louisiana law. Further, the Department noted in the Bulletin that Louisiana residents may take a deduction for another state's entity-level tax that is based solely on income included in the entity's federal taxable income without any capital component, provided that the entity's income is included in the resident's Louisiana income and is subject to Louisiana income tax. The Department then reviewed such credit provisions as they relate to the Texas franchise tax paid on income that flowed through to the Louisiana resident. Thereafter, the Department clarifies in this Bulletin that taxpayers who claim a deduction for federal purposes with respect to state and local taxes paid are not prohibited from claiming a credit for Louisiana purposes – that is, qualifying state taxes that are paid and deducted under a qualifying federal provision remain eligible and may be utilized for purposes of claiming the credit for taxes paid under Louisiana law. However, the Department noted that no credit or deduction is allowed for resident individual taxpayers paying another state's entity-level tax if the entity's operations resulted in a net loss for federal income tax purposes for the taxable year. More information can be found here.

August 2023

Reinstated Second Amendment Sales Tax Holiday: On July 26, 2023, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 23-018 addressing the reinstated Second Amendment Weekend Holiday for sales and use tax purposes. As noted in the Bulletin, this sales tax holiday begins on September 1, 2023, and ends at midnight on September 3, 2023. This holiday provides a sales and use tax exemption on any consumer purchase of firearms, ammunition, and hunting supplies occurring during that exemption period. The Bulletin then addresses the types of purchases eligible for the exemption, the purchases that are not eligible for exemption, as well as conditions and special provisions relating to the exemption. More information can be found here.

July 2023

Adjustments to Federal Income Tax Deduction for Disaster-Related Casualty Losses: On June 29, 2023, the Louisiana Department of Revenue (Department) published Revenue Information Bulletin No. 23-017 explaining the impact of recent legislation to the federal income tax deduction for individuals impacted by Hurricane Ida. As referenced in this Bulletin, the Department stated that affected taxpayers in a federally declared disaster area have the option under federal law of claiming disaster-related casualty losses on their federal income tax return for either the year in which the event occurred or the prior year. The Department further notes in the Bulletin that if the individual elects to claim the loss in the prior year, the individual amends the prior year income tax return to claim a federal tax refund attributable to the disaster loss. The Department goes on to explain that if a Louisiana individual income taxpayer amends his or her federal income tax return, the taxpayer is required to amend the Louisiana income tax return – the reason for such requirement being that the amendment to the Louisiana income tax return is required because Louisiana income tax return largely piggybacks the federal income tax return. By way of example, the Department stated that a change in the federal income tax liability as a result of an amended federal income tax return changes the Louisiana income tax deduction for federal income tax liability. With respect to casualty losses, the Department in the Bulletin states that an amended federal income tax return that increases the deduction for personal casualty losses related to Hurricane Ida, which is a qualified major disaster, reduces federal income tax liability; however, this reduction in federal income tax liability results in reduced a Louisiana income tax deduction for federal income tax liability. As a result, the Louisiana income tax deduction for the federal income liability decreases, and the Louisiana income tax liability increases. The Department then states that to avoid this result, legislation was enacted in 2023 that provides state specific relief to accompany the federal relief; and, as a result of such legislation, Louisiana individuals are generally not required to file amended 2020 or 2021 Louisiana income tax returns if the only reason for the amended federal income tax return was to claim the federal relief provision for personal casualty losses related to Hurricane Ida. The Bulletin sets forth contact information for questions. More information can be found here.

June 2023

Sales Tax Collection Thresholds Modified for Remote Sellers and Facilitators: In late May 2023, the Louisiana Legislature passed HB171, which was subsequently signed by the Governor on May 30, 2023. That legislative initiative, which is now Act No. 15, modified the sales tax collection responsibilities for remote sellers and facilitators effective August 1, 2023, so as to eliminate the threshold requirement involving 200 or more separate transactions. The foregoing threshold, which was one of two thresholds approved by the United States Supreme Court on June 21, 2018, in the case of South Dakota vs. Wayfair, Inc., et al., imposes sales tax collection responsibilities upon a remote seller engaging in 200 or more separate transactions for delivery into the taxing state during a year. With the removal of that threshold, which has been removed or otherwise never adopted in many other states, a remote seller after the effective date of Act No. 15, will be responsible for collecting Louisiana's sales tax if that seller's gross revenues for sales delivered into Louisiana exceeds $100,000 from otherwise taxable transactions. Act No. 15 also makes this same threshold modification for marketplace facilitators selling into Louisiana. Still further, Act No. 15 modified the definition of remote sales to include only retail sales as defined under Louisiana law for marketplace facilitators. Other modifications relative to marketplace facilitators are also included within Act No. 15. More information can be found here.

May 2023

Natural Gas Severance Tax Rate Effective July 1, 2023: On May 8, 2023, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 23-013, addressing the natural gas severance tax rate which is effective July 1, 2023 through June 30, 2024. In this Bulletin, the Department stated that such a rate has been set at 25.1 cents per thousand cubic feet measured at a base pressure of 15.025 pounds per square inch absolute and at a temperature base of 60 degrees Fahrenheit. The Department also sets forth in this Bulletin the methodology used for establishing the foregoing rate. Further, the Department states in this Bulletin that gas produced from an inactive or orphan gas well is subject to a reduced severance tax rate equal to 50 percent, or 25 percent of the severance tax rate, respectfully. The Bulletin also sets forth contact information to which questions can be directed. More information can be found here.

April 2023

State Sales Tax Rebate for Fencing Materials Purchased By Certain Commercial Farmers: Earlier this year the Louisiana Department of Revenue issued Revenue Information Bulletin No. 23-007 dated February 1, 2023, addressing a certain state sales tax rebate approved in the 2022 Legislature for the purchase of certain agricultural fencing by commercial farmers impacted by Hurricanes Laura, Delta, Zeta, and Ida. According to this Bulletin, the amount of the rebate is equal to the state sales and use tax paid by commercial farmers on the agricultural fencing materials purchased. In that regard, the Bulletin stated that agricultural fencing materials are materials that enclose land used for agricultural purposes in the production of food and fiber; and such agricultural fencing materials are limited to materials used to replace or repair fencing located in federally declared disaster areas, if such fencing was substantially damaged or destroyed by the above-referenced hurricanes. According to this Bulletin, a commercial farmer means only those persons, partnerships, or corporations who are certified as commercial farmers by the Department on or before January 1, 2022. A copy of the commercial farmers’ certificate/card must be attached to the rebate request. The Bulletin also stated that a rebate is not allowed for any portion of the purchase of agricultural fencing materials paid for with insurance proceeds or state or federal funds unless the state or federal funds are reported as taxable income or are structured as repayable loans. The Bulletin also set forth how a commercial farmer can claim the rebate pursuant to the 2022 enactment; and that rebates are only allowed for purchases of agricultural fencing made on or before December 31, 2022, may only be submitted once per calendar year, and that all claims for rebates must be submitted on or before December 31, 2023. More information can be found here.

March 2023

Fresh Start Proper Worker Classification Initiative: On February 15, 2023, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 23-010 regarding the Fresh Start Program that became effective January 1, 2023. Under this Program, employers who have been misclassifying a class or classes of workers as independent contractors will be allowed to reclassify those workers and voluntarily disclose such reclassification to the Department without liability for prior periods. To qualify, according to this Bulletin, the employer must have consistently treated the class or classes of workers as non-employees for the last three years, and all employees in the same class must have been treated similarly. Further, the employer according to this Bulletin must have filed all IRS forms 1099 – NEC (or the predecessor IRS Form) for all workers in the class. Further, if income taxes were withheld or unemployment contributions were made for a worker, the Bulletin states that such worker would be treated as an employee and the employer is disqualified from seeking relief under the Program. Still further, if unemployment insurance contributions were made for the worker, the worker was treated as an employee and again the employer is disqualified. According to the Bulletin, qualifying businesses must submit an application for the Program to the Department between January 1, 2023 and December 31, 2023, at the email address set forth in the Bulletin. Further information is provided in this Bulletin with respect to the Department's review of the application. The Bulletin also sets forth contact information regarding questions as to qualification and application for the Program. More information can be found here.

February 2023

Filing Requirements for IRS Form 1099-NEC: On January 12, 2023, the Louisiana Department of Revenue (Department) published Revenue Information Bulletin 23-006, addressing the requirements, beginning January 1, 2023, for service recipients (businesses) that are required to file IRS Form 1099-NEC with the Internal Revenue Service. The Bulletin states that a copy of this Form, which involves non-employee compensation, must also be filed with the Department when issued by the business for services provided in Louisiana or for services performed by an individual residing in Louisiana at the time the services were performed. Unless an exemption applies, such businesses are required to file a copy of Form 1099-NEC with the Department on or before February 28 for the proceeding tax year — that is, before February 28, 2023, for 2022. The Bulletin further states that such businesses are required to file Forms 1099-NEC directly with the Department when the business did not timely electronically file all Forms 1099-NEC with the IRS and, if prompted, authorize sharing of the information provided with the Department. Such businesses, according to the Bulletin, are not required to file Form 1099-NEC directly with the Department when the business timely and electronically filed such with the IRS, either through commercial third third-party tax software, the IRS Filing Information Returns Electronically system, or otherwise IRS-approved electronic filing systems. The Bulletin also states that businesses filing 50 or more Forms 1099-NEC are required to file electronically. Other information, with frequently asked questions, is included in this Bulletin. More information can be found here.

January 2023

2023 Interest Rate Collected on Unpaid Taxes: The Louisiana Department of Revenue has published Revenue Information Bulletin No. 23-001, dated January 1, 2023, setting forth the interest rate that will be applied to unpaid taxes during the 2023 year. That interest rate on unpaid taxes will be collected at the annual rate of 9.5 percent from January 1, 2023, through December 31, 2023. Based on the chart in this Bulletin, that 2023 rate is up from the 2022 rate, which was 6.5 percent. More information can be found here.

October 2022

Tax Implications of Federal Student Loan Forgiveness Program: On September 14, 2022, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin 22-017 dealing with the Louisiana tax implications of the federal student loan forgiveness program. In this Bulletin, the Department noted that on August 24, 2022, President Biden announced a plan that in part provides up to $20,000 in student loan forgiveness to Pell Grant recipients on loans held by the U.S. Department of Education and up to $10,000 in student loan forgiveness to non-Pell Grant recipients. The Department noted in this Bulletin that, for federal purposes, taxpayers who have either a federal filing status of single and earn less than $125,000 or a federal filing status of married filing jointly and earn less than $250,000, are eligible for the forgiveness. After reviewing background information regarding the Student Loan Tax Relief Act, the Department stated in this Bulletin that, for Louisiana tax purposes, the starting point for determining Louisiana's tax table income is the taxpayer's adjusted gross income, which is defined as the adjusted gross income of the individual for the taxable year that is reportable on the individual's federal income tax return. The Department went on to state that because Louisiana largely conforms to federal tax law for purposes of individual income tax, amounts that are exempt from federal tax, and therefore not includable in the taxpayer's adjusted gross income, will automatically be exempt from Louisiana tax without further action. The Department also indicated that for taxpayers qualifying for federal student loan forgiveness pursuant to the President's plan, any amount so forgiven will likely be automatically excluded from a taxpayer's adjusted gross income and exempt from Louisiana tax. More information can be found here.

September 2022

Proposed Rule Requiring Electronic Returns/Payments by Vapor Products Dealers: The Louisiana Department of Revenue (Department) published a Notice of Intent to promulgate rules requiring every retail dealer of vapor products that files a Louisiana Tobacco Tax Return for Retail Dealers of Vapor Products to be required to file the return and all reports electronically with the Department using the electronic format. It also requires all payments by a retail dealer of vapor products to be electronically transferred to the Department on or before the 20th day after the close of the reporting period using the electronic format provided by the Department. The Department stated that a public hearing will be held on September 27, 2022, at 9:00 a.m. at the address set forth in the Notice. Further, written comments will be accepted by the Department until 4:30 p.m., September 26, 2022, at the address set forth in the Notice. More information can be found here.

August 2022

Proposed Rule Relieving Employers of Withholding for Certain Nonresident Employees: The Louisiana Department of Revenue (Department) recently published a Notice of Intent to initiate a rulemaking procedure relative to Revised Statute 47:112.2, which authorized an individual income tax exemption for certain nonresident employees who performed their employment duties in Louisiana for 25 days or less. The Department noted that this statute relieves employers of such nonresident employees of the requirement to withhold Louisiana individual income tax on the nonresident employee's wages. However, if the nonresident employee performs employment-related duties in Louisiana for a period more than 25 days in a calendar year, the employer is required to withhold and remit tax to Louisiana for the entire year, including the first 25 days. The Notice of Intent states that a public hearing will be held on August 25, 2022, at 1:30 p.m. CST at the Baton Rouge address set forth in that Notice. The text of the proposed Rule provides several conditions in order for an employer to be eligible for the exemption, such as the compensation must be paid for employment duties performed by the nonresident individual in the state for 25 or fewer days in the calendar year; the nonresident individual performed employment duties in more than one state during the calendar year; the wages are not paid for employment duties performed by the nonresident individual in the individual's capacity as a professional athlete or in certain other capacities; and the nonresident individual did not have other income derived from sources within Louisiana during the taxable year, among other conditions. Further, nonresident employees seeking to claim the exemption must file a Form L-4E, Exemption from Withholding Louisiana Income Tax, with their employer in order for their employer to refrain from withholding Louisiana income taxes from their wages, and such Form must be filed annually in order to continue claiming the exemption. Employers receiving the Form L-4E must retain that Form in their records. The Department will not require the payment of penalties or interest for failing to deduct and withhold income tax for a nonresident employee who does not qualify for the exemption if the employer meets certain conditions; otherwise, the Department will require the payment of penalties and interest. The current deadline for comments under this Notice is 4:00 p.m. CST August 24, 2022, and comments are to be submitted to the address set forth in the Notice. More information can be found here (beginning at page 2019).

Multi-Parish Sales and Use Tax Audit Program: On July 1, 2022, new procedures for the multi-parish sales tax audit program went into effect. In order to minimize costs for all parties, the State of Louisiana implemented the Multi-parish sales tax audit program. A taxpayer may now consolidate multiple audit requests by multiple parishes into a single audit. A multi-parish audit may be requested by a taxpayer that (i) has a location in the state and is registered to file and remit local sales and use taxes pursuant to a local ordinance in at least three parishes; (ii) is not a recipient of a jeopardy assessment issued by any collector; (iii) is not engaged in a current audit by a collector for which a notice of intent to assess was issued prior to July 1, 2022; (iv) agrees to promptly sign all necessary agreements to suspend prescription; and (v) is not involved in any litigation with any collector. A taxpayer that qualifies may request a multi-parish audit from the board within 30 days from the issuance of a notice of examination from all of the parishes in which the taxpayer engaged in taxable transactions during the audit period. There are a number of other procedures that noticed taxpayers must comply with in order to take advantage of this consolidated multi-parish tax audit. More information can be found here.

June 2022

Voluntary Disclosure Proposed Rule Amendments: In a recent edition of the Louisiana Register, the Louisiana Department of Revenue (Department), through the Sales and Use Tax Commission for Remote Sellers, published a Notice of Intent to adopt a rule (beginning on page 1,400 of the Register) to provide general guidance and procedures for the administration of voluntary disclosure agreements. This proposed rule covers a wide variety of matters involving voluntary disclosure agreements with the Department, the purpose of which appears to provide clarifying amendments to existing voluntary disclosure procedures. The Notice states that any interested person may submit written data, views, arguments or comments regarding these proposed amendments received no later than June 27, 2022. A public hearing is scheduled for June 28, 2022, at the location set forth in the Notice. More information can be found here.

May 2022

Managed Audits Must be Closed by June 30, 2022: The Louisiana Department of Revenue (Department) previously issued a news release providing the application deadline (April 30, 2022) for the Louisiana Transfer Pricing Managed Audit Program, which is a voluntary initiative aimed at resolving intercompany transfer pricing issues. That news release reviewed the benefits of the program and conditions for participating in the program. Further, however, the release references Revenue Information Bulletin No. 21-029 dated October 26, 2021, which further provides all managed audits pursuant to this Program must be closed by June 30, 2022. More information can be found here and here.

April 2022

Jobs Tax Credit Program Deadline: On April 13, 2022, the Louisiana Department of Revenue (Department) issued a news release advising Louisiana employers that April 30, 2022, is the deadline for applying for the 2022 Louisiana Youth Jobs Tax Credit Program. According to the release, this Program provides incentives for companies to hire unemployed young people from economically challenged backgrounds, and aims to help young people gain critical workforce skills needed for successful careers. This Program would provide a credit of $1,250 for hiring an eligible youth for a full-time position, or $750 for a part-time position. Eligible employees are Louisiana residents ages 16 through 23 who were unemployed prior to being hired by the business applying for the tax credit. More information regarding the Program and the credit can be found here.

March 2022

Guidance as to Partnership Filing Requirements for the 2021 Tax Year: On February 15, 2021, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 22-007, as amended February 24, 2022, so as to address the filing requirements for partnerships for the 2021 tax year. In this Bulletin, the Department addresses various filing requirements including returns for partnerships on a calendar year basis are due May 16, 2022 for the 2021 calendar year. The Department further stated a six-month extension may be requested on or before the original due date, and returns for partnerships on a fiscal year basis are due on or before the 15th day of the fifth month after the close of the fiscal year. The Department also noted in this Bulletin a return is required for partnerships doing business in Louisiana or any partnership deriving income from Louisiana sources. Pursuant to the earlier referenced amendment to this Bulletin, the Department stated due to unexpected delays with the availability of electronic filing of the Form IT-565, the requirement to file the Form for partnerships with only Louisiana residents as partners is waived for the 2021 year. Separately, with respect to composite partnership returns, the Department stated in this Bulletin beginning with the 2021 tax year, the Louisiana Composite Partnership Return has been discontinued as a standalone tax return; and, instead, the composite partnership information is reported on Schedule 6922 and attached to the Form IT-565. This Bulletin also addresses certain situations in which a partnership is not required to file a partnership return, as well as addresses various partnership account registrations issues. More information can be found here.

February 2022

Louisiana Individual Income Tax Reform Effective Beginning 2022: The Louisiana Department of Revenue (Department) recently issued Revenue Information Bulletin No. 21-032 regarding the individual tax reform effective for 2022 and future tax years. In this Bulletin, the Department noted Louisiana voters approved Constitutional Amendment Number 2 (CA2) which amended the Louisiana Constitution, resulting in income tax statutory changes effective in 2022. The purpose of this Bulletin, according to the Department, is to explain these changes to the individual income tax and to encourage taxpayers to review their withholding and estimated tax payments beginning with the 2022 tax year. The Department clearly states in the Notice there is no impact with respect to the 2021 tax returns which are due May 16, 2022. However, with respect to the 2022 tax year and thereafter, the Department states in the Bulletin that CA2 contains two major changes, one specific to the individual income tax and one applicable to all Louisiana income taxes: (i) maximum income tax rate for individuals is set at 4.75%; and (ii) federal income taxes paid may be deductible as provided by Louisiana legislation. The Department then describes in the Bulletin how the changes made by CA2, together with statutory changes, impact the computation of the individual income tax – such as the income tax rate reduction, the limitation on excess federal itemized personal deductions, and the repeal of the federal income tax deduction. Further, the Department in the Bulletin discusses revisions to the withholding tax tables and formulas, and provides guidance to individuals regarding their Louisiana tax obligations beginning in 2022. More information can be found here.

January 2022

Fresh Start Proper Worker Classification Program Delayed: The Louisiana Department of Revenue (Department) recently issued Revenue Information Bulletin No. 21-031 dealing with the implementation of the Fresh Start Proper Worker Classification Initiative (Fresh Start Program). According to this Bulletin, the Fresh Start Program allows employers who have been misclassifying a class or classes of workers as independent contractors to reclassify those workers and voluntarily disclose such reclassification to the Department and to the Louisiana Workforce Commission (Commission) without liability for prior periods. Under the Fresh Start Program, the employer agrees to treat the reclassified as workers on a prospective basis and in exchange is not held liable for any withholding tax, unemployment tax, interest or penalties for prior periods. Although the Fresh Start Program was scheduled to begin January 1, 2022, the Commission adopted an emergency rule in November 2021 to delay the implementation of certain statutory provisions that provide relief associated with the Fresh Start Program. Accordingly, the Fresh Start Program will be delayed while that emergency rule remains in effect. More information can be found here.

October 2021

Penalty Relief for Unpaid Sales Tax Under Payment Plan Due by November 30, 2021: The Louisiana Department of Revenue (Department) previously issued Revenue Information Bulletin No. 21-027 dated September 17, 2021, dealing with the devastation caused by Hurricane Ida. As referenced in that Bulletin, taxpayers in certain parishes were eligible for automatic extensions, by tax type, based upon deadlines set by the Department. The sales tax payment deadline was September 20, 2021; but for eligible taxpayers the August 2021 sales tax period is extended from September 20, 2021 to November 1, 2021 for return filing purposes. The Bulletin also states that the Department will grant an automatic penalty relief to taxpayers located in the eligible parishes for the August 2021 sales tax period under certain conditions; and, in order to qualify for the penalty relief, the taxpayer must file the August 2021 sales tax return and remit the sales tax and any deficiency interest by November 30, 2021. Further, the Bulletin states that if a taxpayer is unable to remit the sales tax and any deficiency interest by November 30, 2021, penalty relief will be granted if the taxpayer submits and enters into an Installment Payment Plan Request for sales taxes due by November 30, 2021. The Bulletin sets forth more information regarding such penalty relief. More information can be found here.

September 2021

Extensions Granted for Eligible Individuals/Businesses Impacted By Hurricane Ida: On September 7, 2021, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 21-024 announcing automatic extensions granted as a result of those impacted by Hurricane Ida. According to this Bulletin, eligible taxpayers include individuals and businesses whose homes, principal places of business, critical tax records, or paid tax preparers are located in one of the 25 parishes identified in the Bulletin. According to the Bulletin, automatic extensions are based on the taxpayers' location address on file with the Department; however, if the taxpayers' location address is not within one of the parishes listed in the Bulletin, the taxpayer may still be eligible for interest and penalty relief even though an automatic extension did not apply. As noted in the Bulletin, extensions do not apply for any tax that was due before August 26, 2021. The extensions provided by the Department in this Bulletin include individual income, corporation income and franchise, fiduciary income, partnership, and partnership composite tax returns with the original or extended due dates on or after August 26, 2021 and before January 3, 2022, with the extension due date to file the return being January 3, 2022. The Bulletin also addresses extensions that may be applicable with respect to the estimated income tax payments, withholding tax returns, and severance and excise tax returns. The Department sets forth various criteria in this Bulletin required to be eligible for these extensions. More information can be found here.

August 2021

Exemption for COVID-19 Relief Benefits: On July 23, 2021, the Louisiana Department of Revenue (Department) issued Revenue Information Bulletin No. 21-019 addressing the taxability of benefits received from the Louisiana Main Street Recovery Fund and the Frontline Workers COVID-19 Hazard Pay Rebate Program based upon Act 54 of the 2021 Regular Session of the Louisiana Legislature. The bulletin recognized that the Louisiana Main Street Recovery Fund was created in the 2020 Regular Session so as to award grants to Louisiana small businesses to assist with the recovery from the economic impacts of COVID-19; and that the Frontline Workers COVID-19 Hazard Pay Rebate Program was also created in 2020 by the Legislature to provide a one-time $250 rebate to essential critical infrastructure workers who are Louisiana residents. Further, the Department recognized that Act 54 of the 2021 Regular Session provided an individual and corporate state income tax exemption for relief benefits which includes gratuitous grants and rebates. It noted that both of these programs constitute a gratuitous grant or rebate; and, as such, amounts received by individuals or corporations pursuant to either program will be exempt income for state income tax purposes pursuant to Act 54. The bulletin stated that taxpayers seeking to claim the exemption provided by Act 54 should report the exempt income on their 2020 Louisiana Tax Return using one of the applicable forms identified in the bulletin. Further, the Bulletin states that questions concerning the publication may be submitted by email to Policy.Publications@La.gov. More information can be found here.

July 2021

Tax Filing And Payment Deadlines Extended Because of Severe Weather: The Louisiana Department of Revenue (Department) recently issued Revenue Information Bulletin No. 21-015 (the Bulletin) providing that an automatic filing and payment extension has been granted to taxpayers whose homes, principal places of business, critical tax records, or paid tax preparers are located in parishes declared federal disaster areas following the severe storms and flooding that occurred May 17, 2021. According to the Bulletin, the Department is providing an automatic extension until August 16, 2021, for individual income, corporation income and franchise, fiduciary income, partnership, and partnership composite tax returns and payments with original or extended due dates on or after May 17, 2021. This extension applies to tax returns and payments for the 2020 income tax year and the 2021 franchise tax year. Further, if a taxpayer requires additional time to file the 2020 income or 2021 franchise tax return beyond August 16, 2021, an extension request may be submitted on the applicable extension form which must be submitted by August 16, 2021; and, if so submitted, the extension period runs from August 16, 2021 to the general extension date of November 15, 2021 for individual, fiduciary, and partnership returns, and to December 15, 2021 for corporation returns. The Bulletin states that interest and late payment penalties shall accrue beginning August 16, 2021 on the outstanding balance of tax due. Other extension related information can be found in the Bulletin, located here.

Revised Regulatory Authority For Installment Payment Agreements: The Department recently amended Louisiana Administrative Code Section 61.I.4919 entitled "Installment Agreement For Payment of Tax." According to the Department's statement of purpose, this regulatory amendment is intended to clarify that a continuing guaranty agreement may be required for installment agreements requested by limited liability companies, partnerships and limited partnerships, to the extent the payment period for which an informal installment agreement is authorized, and to make technical changes. Further, it appears that this regulatory change has added an additional 12 months that may be available to taxpayers seeking an installment payment agreement. More information can be found here.

June 2021

Centralized Sales Tax Collection Passed By Legislature: The Louisiana Legislature just passed House Bill No. 199 (HB 199) which makes various changes to the State's sales and use tax laws, including the establishment of The State and Local Streamlined Sales and Use Tax Commission (Commission). The Commission, the initial members of which will include the Secretary of the Department (Department) of Revenue together with other appointed members, shall (among other responsibilities) provide for the streamlined electronic filing, electronic remittance, and the collection of sales and use taxes levied within Louisiana ensuring prompt remittance of the respective tax returns and monies received electronically by the Commission to the single collector for each taxing authority and to the Department of Revenue for distribution. The Commission ultimately will become the authority in Louisiana for functions currently performed by the Louisiana Sales and Use Tax Commission for Remote Sellers and the Louisiana Uniform Local Sales Tax Board. As stated in HB 199, these proposed amendments to Louisiana law must be submitted to voters of the State at the statewide election to be held on November 8, 2022, so as to constitutionally approve such amendments. Governor Edwards is expected to sign HB 199. More information can be found here.

Income Tax Amendments Passed By Legislature: Additionally, the Louisiana Legislature passed various legislation revising and reforming the State's income tax laws; contingent, however, on a statewide vote on October 9, 2021, as required by Senate Bill 159 (now Act No. 134, more information can be found here), to approve changes to Louisiana's Constitution to accommodate these changes. For instance, House Bill No. 278 reduces the income tax rates for individuals, changes the definition of net income by deleting the deductibility of federal income taxes and other adjustments, effective on January 1, 2022 if so approved by voters (more information can be found here); House Bill No. 292 reduces the tax rate for corporate income taxes, and eliminates the deduction for federal income taxes with other adjustments, effective January 1, 2022 upon such statewide approval (more information can be found here); and Senate Bill 161 which provides for reduced corporate franchise tax rate for small business corporations effective January 1, 2023, again contingent upon statewide approval (more information can be found here). Governor Edwards is expected to sign these legislative initiatives.

Transferability of Credits/Pass-through Entity Elections: The Department issued Information Bulletin No. 21-012 on May 12, 2021, addressing the timing for the transfer of certain credits and the timing for pass-through entities electing to pay tax at the entity level. With respect to the transferability of credits, the Department stated that to utilize a transferred credit on a tax return, Louisiana law requires that the effective date of the transfer of the tax credit, or the execution of a binding agreement to transfer the tax credit, occur on or before the due date of the return without regard to any extension granted. As a result, the Department concluded in this Bulletin that there is no extension of time for either the effective date of the transfer of a tax credit or the execution of a binding agreement to transfer the tax credit; and as such, the deadline remains May 17, 2021. With respect to the election for pass-through entity taxation, the Department stated in this Bulletin that Louisiana law requires that taxpayers file the election by April 15, 2021; and that, while an extension of time to file the 2020 income and 2021 franchise tax returns are available, no extension is granted for the pass-through entity election. However, the Department further stated in the Bulletin that a late filed election may be considered timely by Department if there exists reasonable cause for the failure to make a timely election, and that an applicant must provide adequate facts and circumstances to support a finding of reasonable cause. More information can be found here.

May 2021

Portion of 2020 Unemployment Benefits Exempt from State Income Tax: The Louisiana Department of Revenue (Department) issued a Revenue Information Bulletin in late March 2021 addressing the Louisiana tax implications of the federal $10,200 unemployment compensation exclusion. The Bulletin's purpose is to explain that this federal exclusion also applies to Louisiana individual income tax and to provide instructions to taxpayers. The Bulletin then reviews the background of the federal exclusion and how such exclusion impacts the computation of the Louisiana individual income tax. The Bulletin provides guidance to taxpayers who have not yet filed the 2020 federal or state tax return, as well as provides guidance to those taxpayers that have already filed their 2020 federal and state tax return. The Bulletin explains that the Internal Revenue Service will determine the correct taxable amount of unemployment compensation and the federal income tax, and will adjust federal tax returns accordingly. These adjustments, according to the Bulletin, could result in an overpayment of tax, and the Bulletin provides guidance with respect to those situations. If a Louisiana return is required, the Department's Bulletin states for faster refund processing the taxpayer may amend the 2020 tax return electronically through Louisiana File Online, and return processing and refund tracking will be available online as well.

April 2021

Extensions Provided: On March 18, 2021, the Louisiana Department of Revenue published Revenue Information Bulletin No. 21-007 granting automatic filing and payment extensions to taxpayers located in parishes declared federal disaster areas following the severe winter storms that occurred on February 11 – 19, 2021. Those disaster areas include all 64 parishes in Louisiana. For individual income, corporation income and franchise, fiduciary income, partnership, and partnership composite tax returns and payments with original or extended due dates on or after February 11, 2021, and before June 14, 2021, the automatic extension due date is June 15, 2021. Extensions were also provided through March 31, 2021 for withholding tax returns and payments due on or after February 11, 2021 and before February 28, 2021; and sales, severance, and excise tax returns and payment with original or extended due dates on or after February 11, 2021 and before February 28, 2021 were also extended to March 31, 2021. Other extensions were also referenced in this Revenue Information Bulletin. More information can be found here.

February 2021

Updates Reported – On February 11, 2021, the Louisiana Department of Revenue issued a News Release addressing a number of issues pertaining to the Louisiana Income Tax, including that the Department will begin accepting tax returns through the Louisiana File Online portal on February 12. Further, the Department clarified that the economic impact payments provided under the CARES Act of $1,200 for qualifying individuals and $2,400 for qualified married couples, with an additional $500 per dependent child, as well as the payments under the Consolidated Appropriations Act of 2021 (CARES II) of up to $600 for individuals or $1,200 for married couples and up to $600 for each qualifying child, is not subject to the Louisiana state income tax. Similarly, the Department clarified that the loan forgiveness under the Paycheck Protection Program established by the CARES Act, providing small businesses with funding for payroll costs, mortgage interest, rent, and utilities, is also not subject to the Louisiana state income tax. However, the Department did note that the supplemental unemployment benefits of $600 weekly under the CARES Act, together with up to $300 in weekly supplemental benefits under CARES II, as well as certain rebates provided by the Louisiana Legislature for frontline workers as well as certain grants allocated by the Legislature to small businesses funded by the CARES Act, are subject to the Louisiana state income tax. The News Release concludes by stating that the 2020 Louisiana Individual Income Tax returns and payments are due May 17, 2021. More information can be found here.

November 2020

Updates Reported – On November 16, 2020, the Louisiana Department of Revenue issued Revenue Information Bulletin No. 20-023 announcing a sales tax holiday for November 20-21, 2020. The purpose of the holiday is to provide tax relief for citizens recovering from Hurricane Laura, Hurricane Delta, and the COVID-19 pandemic. Consumer purchases are exempt for the first $2,500 of the sales price or cost price of the individual item. The holiday does not apply to business or commercial purchases of tangible personal property. The sales tax exemption during the holiday will apply to various activities, including buying and accepting delivery of tangible personal property, placing tangible personal property on layaway, and making final payment on tangible personal property previously placed on layaway. Various special provisions are also applicable to the holiday, and dealers are required to report eligible exempt sales subject to the holiday on their November 2020 Form R-1029, using Code 5088 on Schedule A-1. More information can be found here.

October 2020

Updates Reported – On October 16, 2020, Governor Edwards signed into law a bill passed during the 2020 Second Extraordinary Session, Senate Bill No. 14, which makes further amendments to the Louisiana New Markets Jobs Act tax incentives. That Act authorizes a state premium tax credit to any entity that makes a qualified equity investment. The entity or subsequent holder of the qualified equity investment shall be entitled to use a portion of the credit on each credit allowance date. The credit is equal to the applicable percentage for the credit allowance date, as determined in the Act, multiplied by the purchase price or the amount paid for the qualified equity investment.

A qualified equity investment is an equity investment in a qualified community development entity which in turn is invested into a qualified active low-income community business that satisfies certain conditions. However, and as a result of the earlier referenced amendment signed by the Governor, a business that otherwise satisfies the definition of a qualified equity investment but for being located in a low-income community, shall satisfy that definition if the business is located in a "recovery zone." Under this amendment, a "recovery zone" means any parish for which the Federal Emergency Management Agency of the U.S. Department of Homeland Security has made a determination that the parish is eligible for both individual and public assistance under the declaration of major disaster for the State of Louisiana. This amendment is effective upon signature by the Governor. More information can be found here.

September 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (September 30): On September 24, 2020, Louisiana Governor Edwards signed Proclamation Number 129 JBE 2020, entitled COVID-19 Public Health Emergency/Additional Suspension - Louisiana Workforce Commission. The purposes of this Proclamation is to suspend the imposition of a solvency tax that would otherwise become effective when the balance of the Unemployment Trust Fund for the next four quarters would be less than $100 million. That solvency tax, if implemented, would assist in restoring the current balance of the Fund, which the Proclamation noted to be $49.4 million as of September 24, 2020. However, as also noted in the Proclamation, the solvency tax if triggered in September of 2020 would levy a significant tax increase on employers in April of 2021, before there can be a full recovery of the Louisiana economy from COVID-19. As a result, the Proclamation suspends the requirements of the Secretary of the Workforce Commission to report a balance of the Fund below $100 million for the next four quarters and to assess a solvency tax. The Proclamation states that these provisions are effective from September 24, 2020 to October 9, 2020, or as extended by any subsequent Proclamation, unless terminated sooner. More information can be found here.

August 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (August 20): By Notice of Intent just recently published, the Louisiana Department of Revenue gave notice pursuant to rulemaking procedures that the Department has initiated the regulatory process to finalize a rule which mandates the electronic filing and payment requirements for the Alcoholic Beverage Tax Return, Hazardous Waste Disposal Tax Return, Transportation and Communication Utilities Tax Return, and Report of Inspection and Supervision Fee. Upon finalization of this regulatory process, the electric filing and payment requirements would be mandatory for those particular returns/reports and tax/fee payments effective for all applicable periods beginning on or after January 1, 2021. Interested persons may submit written data, views, arguments or comments regarding this proposed rule to the address as set forth in the Notice of Intent; and written comments will be accepted until 4:30 p.m., September 25, 2020. Further, a public hearing will be held on September 28, 2020 at the location set forth in the Notice. That Notice of Intent can be found here.

July 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (July 27): Within the last several days Governor Edwards has signed into law various bills from the 2020 Special Legislative Session. Included among those recently enacted laws are the following: (i) extending the sunset for the research and development tax credit until December 31, 2025 (more information can be found here); (ii) providing for an extension of the State's Angel Investor Tax Credit Program through June 30, 2023 (more information can be found here); (iii) requiring the Louisiana Department of Revenue to waive penalties and interest for certain taxpayers for tax years 2019 and 2020, provided that the taxpayer meets certain conditions such as the health of the taxpayer or of the tax preparer was impacted by COVID-19 on or after March 11 and on or before July 15, 2020, and provided that this new law does not apply to any tax return filed or any tax payments submitted after November 15, 2020 (more information can be found here); (iv) providing for sales and use tax rebate on the sale of certain fiber-optic cable equipment, which appears to applicable to the winning bidder in the Rural Digital Opportunity Fund Option, and which shall equal 50 percent of the sales/use tax paid by the winning bidder on the fiber-optic cable, together with other applicable conditions (more information can be found here); (v) authorizing various business sectors to participate under certain conditions in the State's Enterprise Zone Incentive Program and the Quality Jobs Program (more information can be found here and here); and (vi) providing for the suspension of the corporation franchise tax and the initial corporation franchise tax for small business corporations for franchise taxable periods beginning between July 1, 2020 and June 30, 2021, as the definition of "small business corporation" is defined in that new law (more information can be found here). Each of these newly enacted tax and related laws include various conditions and requirements.

June 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (June 25): On June 4, 2020, Louisiana Governor Edwards signed a bill into law that would allow the Louisiana Department of Revenue, upon the occurrence of a gubernatorial or presidential declared disaster or emergency, to grant reasonable extensions of time for the filing of returns and reports and payment of taxes, fees or services charges for which the Department has been delegated as the collection authority. These extensions of time shall not exceed six months in the case of income and franchise taxes and three calendar months in the case of any other tax, fee or service charge collected by the Department. Further, whenever an extension is granted pursuant to this new law, the return, report, tax fee or service charge for which the extension is granted shall not become delinquent until the expiration of the extension period, and the Department will suspend the accrual of interest for all or part of the extension period. Separately, effective July 1, 2020, the jurisdiction of the Board of Tax Appeals has been expanded and petitions or pleadings may be filed with Board for any matter within its jurisdiction. That same legislation amends the definition of "dealer" for sales and use tax purposes so as to include any person who operates, maintains or facilitates a peer-to-peer vehicle sharing program and provides that the state sales tax collected by such dealers must be filed and paid electronically. More information can be found here and here.

Coronavirus Tax Payment and Return Filing Responsibilities - Updates Reported (June 2): On May 28, 2020, the Louisiana Legislature passed legislation (S138) providing for sales and use tax collection by marketplace facilitators once they exceed the following economic nexus thresholds: the marketplace facilitator's gross revenue for sales delivered into Louisiana exceeded $100,000 from sales of tangible personal property, products transferred electronically, or services; or the marketplace facilitator sold for delivery into Louisiana tangible personal property, products transferred electronically, or services in 200 or more separate transactions. Once signed by the Governor, S138 will take effect July 1, 2020. (L. 2020, S138, effective 07/01/2020, upon the signature of the Governor.)

Also, by Revenue Information Bulletin No. 20-012, issued May 22, 2020, the Louisiana Department of Revenue stated that it will grant automatic penalty relief to taxpayers under certain conditions with respect to the March and April 2020 sales tax returns and payments that were due April 20 and May 20, 2020. To qualify for the penalty relief according to this Bulletin, the taxpayer must file the March and April 2020 sales tax returns and remit the sales tax and any deficiency interest by June 30, 2020. The Bulletin also states that if a taxpayer is unable to remit the sales tax and any deficiency interest by that date, penalty relief will be granted if a taxpayer submits and enters into an Installment Request for Business Taxes by June 30, 2020. Further, and for the March 2020 sales tax period, the Department stated that it has sent self-assessment bills to taxpayers who have filed a March 2020 sales tax return but did not remit all tax shown as due on that return. Pursuant to this Bulletin, taxpayers are not required to pay the penalties shown on the notice if the tax and interest is remitted by June 30 (or the taxpayer submits and enters into an Installment Request by June 30). More information can be found here.

Lastly, on June 1, 2020 the Louisiana Legislature adopted a resolution suspending the corporate franchise tax responsibility for small businesses beginning July 1, 2020 through June 30, 2021. This suspension applies to businesses subject to the tax that reportedly have up to $500,000 of taxable capital. Also suspended is a first-time initial tax of $110. According to sources, this suspension takes effect immediately without requiring the signature of the Governor, notwithstanding the expected cost to the state being about $6 million. More information not available at present.

May 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Further Updates Reported (May 8): On April 22, 2020, the Louisiana Department of Revenue issued Bulletin No. 20-011 providing that the April 25, 2020 deadline for the February 2020 monthly oil and gas severance tax return, payment, and report has been extended to June 25, 2020. The Bulletin states that this is an automatic extension and that no extension request is necessary; and that no penalties or interest will be assessed provided that the applicable monthly return, payment, and report for this severance tax period is submitted to the Department by the June 25 extension date. Lastly, the Bulletin states that this extension does not apply to severance tax returns, payments, or reports due on any other dates. More information can be found here.

April 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Further Updates Reported (April 3): By Revenue Ruling 20-002 dated March 30, the Louisiana Department of Revenue provided deadline extensions for various tax and tax-related obligations. As stated in this Ruling, the Department (i) will automatically waive any underpayment of estimated tax penalty otherwise due for the April 15 and June 15 individual declaration payments provided that the taxpayer pays the April 15 and June 15 declaration payments timely, the amount paid on April 15 is at least 90 percent of the amount paid on April 15, 2019, and the amount paid on June 15 is at least 90 percent of the amount paid on June 17, 2019; and (ii) shall consider any otherwise late filed election made after April 15 by an S corporation, or by an entity taxed as a partnership for federal income tax purposes, to pay tax on its income, to be filed timely if such election is made for the 2019 tax year on or after April 16 but before July 16; and (iii) extends the deadline for a credit transfer or for the execution of a binding agreement to transfer such credit for 2019 income and franchise tax returns by 30 days in accordance with that Ruling. More information can be found here.

March 2020

Coronavirus Tax Payment and Return Filing Responsibilities - Due Date Changes Reported (March 25): On March 23, 2020, the Louisiana Department of Revenue published Revenue Information Bulletin No. 20-009 in which the Department stated that the deadline for filing various state income and franchise tax returns is being extended to July 15, 2020. Those returns so extended include partnership returns on Form IT-565 due April 15 and on Form R-6922 due May 15; individual tax returns on Forms IT-540, IT-540B, and R-1035 due May 15; fiduciary tax returns on Form IT-541 due May 15; and corporate tax returns on Form CIFT-620 due May 15. The Department stated that this filing extension to July 15 is automatic for eligible taxpayers and no extension request is necessary; and that the Department will not apply penalties or interest to any applicable return or payment submitted by the extended July 15 due date. The Department noted in Bulletin No. 20-009 that an additional extension can be requested from July 16 to November 15, 2020 for individual, fiduciary, and partnership returns and to December 15, 2020 for corporation returns. The Department also stated that, due to the statewide stay-at-home order issued by the Governor of the State of Louisiana, the Department has suspended in-person customer service help and recommends taxpayers take advantage of the online customer service options available on the Department's website. Find more information here.

Coronavirus Tax Payment and Return Filing Responsibilities - No Broad Changes Reported (March 19): Pursuant to a news release issued March 16, the Louisiana Department of Revenue encourages individual taxpayers to make payments and file individual income tax returns through the Louisiana File Online. It also encourages all businesses to pay all state business taxes, file returns for state sales, tobacco, withholding, and several other state taxes, and request corporate income filing extensions through the Louisiana Taxpayer Access Point online. Further, the Department encourages tax professionals to submit inquiries through the contact page of its website regarding topics such as corporate, individual, and sales taxes. Find more information here. Additionally, Governor Edwards issued a proclamation on March 16 suspending legal deadlines for tax appeals and other court cases in Louisiana in response to the coronavirus pandemic.

February 2020

Sales and Use Tax: On January 29, 2020, the Louisiana Supreme Court held that Wal-Mart.com was not a "dealer" under La. R.S. 47:301(4)(l) with respect to sales made by third-party retailers through its online marketplace and, therefore, was not obligated to collect and remit sales tax on these sales. The Court held that under La. R.S. 47:301(4)(l), the third-party retailer, and not Wal-Mart.com, constituted a dealer for purposes of collecting and remitting sales and use taxes on these sales. Essentially, what the Court held is that a taxing authority could not rely on the U.S. Supreme Court's removal of the physical presence requirement (in South Dakota v. Wayfair, Inc.) to change existing state tax law governing which party to a sales transaction is a dealer and, thus, obligated to collect and remit sales tax. Such a change is within the exclusive authority of the state legislature. This case highlights the fact that the impact of South Dakota v. Wayfair, Inc. will continue to evolve largely through the responsive actions of state and local law-making bodies. More information on the decision can be found here.

Sales and Use Tax: The Louisiana Sales and Use Tax Commission for Remote Sellers has adopted Louisiana Administrative Code 61:III.1537 and 61:III.1538, effective January 20, 2020, which require remote sellers to file their Louisiana tax returns electronically and to electronically transfer all tax payments on or before the 20th day following the close of the reporting period. These requirements are effective for tax periods beginning on or after July 1, 2020. Here is the full ruling.

Corporate Income Tax: Effective January 20, 2020, the Louisiana Department of Revenue adopted Louisiana Administrative Code 61:I.1001 which provides procedures for S corporations and other pass-through entities taxed as partnerships for federal tax purposes to elect for Louisiana tax purposes to be taxed as C corporations. The Department of Revenue began accepting elections February 1, 2020 for taxable years beginning on or after January 1, 2019. Enacted into law by Act 442 of the 2019 Regular Session of the Louisiana Legislature, this election is intended to circumvent the federal $10,000 cap on the state and local tax deduction taken by individual taxpayers. The cap does not apply to entity taxpayers. An electing entity may apply to the Department to terminate the election and the Department may grant the termination if a majority of the electing entity's owners vote to terminate the election or if there is a material change in circumstances, including a significant change in federal tax law. However, the law does not provide for an automatic termination and leaves it to the Department's discretion whether to grant the termination. First and foremost, entities considering the election must determine whether the election will, in fact, result in lower taxes based on their own unique circumstances; not all entities will benefit from the election. Additionally, they must also decide whether it is worth the risk of having the Department not allow a termination of the election even if the federal tax law were to change in the future. More information about the Code can be found here.

November 2019

Income and Sales Taxes: On November 8, 2019, the Louisiana Department of Revenue published Legislative and Remote Sellers Commission Updates which included guidance with respect to corporate and personal income tax and sales and use tax. The Updates included guidance on filing net operating income returns, the pass-through entity tax, federal tax reform, a timeline of legislation implementation, remote seller filings, and the definition of "remote seller." For more details, click here.

Return Filing: Because of the ransomware attack that affected the Louisiana Department of Revenue, the Department has extended the due date for all tax returns due on November 20, 2019 to November 25, 2019. Louisiana Revenue Information Bulletin No. 19-017, 11/19/2019.

October 2019

Income Tax: The Louisiana Department of Revenue has issued guidance on how changes to Internal Revenue Code Section 951A under the Tax Cuts and Jobs Act will affect Louisiana state income tax. Louisiana Revenue Information Bulletin No. 19-016, 10/08/2019. Click here for the full bulletin.

Practice and Procedure: On October 12, 2019, Louisiana voters approved Proposed Constitutional Amendment No. 3, thus making Act 675 of the Louisiana Legislature, effective January 1, 2019, operative. This legislation authorizes the Louisiana Board of Tax Appeals (BTA) to determine the constitutionality of a statute or ordinance, authorizes the BTA to provide taxpayers with legal remedies in tax cases involving the alleged violation of an Act of Congress, the U.S. Constitution or the Louisiana Constitution. The legislation also extends the BTA's jurisdiction to petitions for declaratory judgments on the constitutionality of state and local laws and the validity of regulations except for those within the Louisiana Tax Commission's jurisdiction.

August 2019

Document Filing Requirements: In the coming months, taxpayers will be able to electronically sign and submit certain forms directly to the Louisiana Department of Revenue, including (1) Form R-20128 (Request for Waiver of Penalty for Delinquency); (2)) Form R-20131 (Request for Abatement of Interest); (3)) Form R-7004 (Tax Information Disclosure Authorization); (4)) Form R-7006 (Power of Attorney and Declaration of Representative); (5)) Form R-19026 (Installment Request for Individual Income); and (6)) Agreements to Suspend Prescription. Louisiana Revenue Information Bulletin No. 19-014, 07/31/2019.

Sales and Use Tax: In Lafayette General Medical Center, Inc. v. Robinson, the Louisiana Third Circuit Court of Appeal held that the Louisiana Department of Revenue could not impose sales tax on a medical center's sales of medical devices. The Court interpreted the Louisiana Constitution's prohibition on the taxation of prescription drug sales to extend to the sale of medical devices. The Court reasoned that although the issue as to whether "prescription drugs" extends to "medical devices" is not entirely clear, it must apply the interpretation that is most favorable to the taxpayer. Lafayette General Medical Center, Inc. v. Robinson, La. Ct. App., 3rd Cir., Dkt. No. 18-879, 08/14/2019.

July 2019

Sales Tax: On July 2, a Louisiana District Court ruled that Harrah's should be paying state sales taxes on complimentary and discounted hotel rooms provided to its casino patrons. The Louisiana Department of Revenue has paused its audits of other casinos awaiting the outcome of its case against Harrah's. If the Department ultimately prevails in its cases against the casinos where tens of millions of dollars of sales taxes are at stake, what does this mean for countless other businesses that give away otherwise taxable goods and services at no charge as a marketing strategy for generating business? The Department is facing challenges based on the fact that these transactions do not contain the statutorily required elements of a taxable transaction including, among others, a sales price. Also, constitutionally, can the Department pursue the tens of millions of dollars in sales taxes allegedly owed by the casinos on these transactions but turn a blind eye to every other business that offers complimentary goods and services as a means of generating customer goodwill?

June 2019

Rental Tax/New Appeal Procedures: On June 6, 2019, the Louisiana Legislature's 2019 Regular Session ended. During that Session, the Legislature authorized the City of New Orleans, subject to a vote of the City's electorate, to tax rentals of residential dwellings with a duration of occupancy of less than 30 consecutive days; and proposed a jurisdictional expansion of the Board of Tax Appeals to include constitutional challenges to state and local taxes, which proposal will be put to a vote of the State's electorate on October 12, 2019.