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					                                                           Table of Contents

                                                       Title 61
                                                REVENUE AND TAXATION

           Part I. Taxes Collected and Administered by the Secretary of Revenue
Chapter 1. Office of the Secretary ................................................................................................................. 1
  §101.     Drug Free Workplace and Drug Testing .................................................................................... 1
Chapter 2. Alcoholic Beverages .................................................................................................................... 4
  §201.     Direct Shipments of Sparkling or Still Wines ........................................................................... 4
Chapter 3. Corporation Franchise Tax .......................................................................................................... 5
  §301.     Imposition of Tax ...................................................................................................................... 5
  §302.     Determination of Taxable Capital ............................................................................................. 6
  §303.     Borrowed Capital ....................................................................................................................... 7
  §304.     Capital Stock ............................................................................................................................. 9
  §305.     Surplus and Undivided Profits ................................................................................................... 9
  §306.     Allocation of Taxable Capital ................................................................................................. 10
  §308.     Exemptions .............................................................................................................................. 17
  §309.     Due Date, Payment, and Reporting of Tax .............................................................................. 27
  §311.     Newly Taxable Corporations ................................................................................................... 28
  §312.     Extension of Time for Filing Return and Paying the Tax ....................................................... 28
  §313.     Fiscal Year; Accounting Period ............................................................................................... 28
  §320.     Books of the Corporation 28
Chapter 6. Presidential Disaster Relief ....................................................................................................... 30
  §601.     Presidential Disaster Relief Credits ......................................................................................... 30
Chapter 9. Hazardous Waste Tax ............................................................................................................... 33
  §901.     Definitions ............................................................................................................................... 33
  §903.     Standard Dry-Weight Conversion Factors .............................................................................. 34
  §905.     Imposition of Tax .................................................................................................................... 35
  §907.     Rate of Tax .............................................................................................................................. 35
  §909.     Direct Payment by Generator .................................................................................................. 35
  §911.     Collection by Disposer; Liability of Disposer ......................................................................... 35
  §913.     Exempt Disposal by Disposer 36
  §915.     Returns and Payment ............................................................................................................... 36
  §917.     Records Requirements ............................................................................................................. 36
Chapter 11. Corporation Income Tax ......................................................................................................... 37
  §1114. Modifications of Federal Gross Income .................................................................................. 37
  §1122. Taxes Not Deductible .............................................................................................................. 37
  §1123. Federal Income Tax Deduction ............................................................................................... 39
  §1124. Net Operating Loss Deduction ................................................................................................ 43
  §1125. Application of Net Operating Losses Carryover to Otherwise Closed Years ......................... 43
  §1130. Computation of Net Allocable Income from Louisiana Sources ............................................ 44
  §1132. Computation of Net Apportionable Income from Louisiana Sources ..................................... 49
  §1134. Determination of Louisiana Apportionment Percent .............................................................. 51
  §1137. Exceptions to Taxable Year of Inclusion; Taxable Year Deductions Taken .......................... 55
  §1140. Exemption from Tax on Corporations ..................................................................................... 56
  §1147. Notice of Regulation, Requiring Records, Statements and Special Returns ........................... 56
  §1148. Corporation Returns ................................................................................................................ 56
  §1168. Notice of Fiduciary Relationship ............................................................................................. 57


                                                                          i           Louisiana Administrative Code                    December 2011
                                                                   Table of Contents

     §1175.    Definition of Separate Corporation Basis ................................................................................ 57
     §1189.    Situs of Stock Canceled or Redeemed in Liquidation ............................................................. 58
     §1195.    Health Insurance Credit for Contractors of Public Works ...................................................... 58
   Chapter 13. Income: Individual .................................................................................................................. 59
     §1301.    Requirements for Submitting Claims for Offset of Individual Income Tax Refunds against
               Debts Owed Certain State Agencies ........................................................................................ 59
     §1302. Nonresident Net Operating Losses .......................................................................................... 60
     §1303. Application of the Louisiana Individual Income Tax to Native Americans ........................... 60
     §1304. Nonresident Apportionment of Compensation from Personal Services Rendered in
               Louisiana ................................................................................................................................. 60
     §1305. Income Tax Schedule Requirement for Certain Nonresident Professional Athletes and
               Professional Sports Franchises ................................................................................................ 63
     §1306. Offset of Individual Income Tax Refunds against Debts Owed Certain Persons ................... 64
     §1307. Federal Income Tax Deduction ............................................................................................... 64
     §1310. Income Tax Tables .................................................................................................................. 64
     §1311. Annual Retirement Income Exemption for Individuals 65 or Older ....................................... 82
     §1351. Suspension, Revocation, and Denial of Hunting and Fishing Licenses .................................. 83
     §1355. Suspension and Denial of Renewal of Drivers' Licenses ........................................................ 84
   Chapter 14. Income: Partnerships ............................................................................................................... 85
     §1401. Partnership Composite Return Requirement, Composite Payment Requirement,
               Exceptions ............................................................................................................................... 85
   Chapter 15. Income: Withholding Tax ....................................................................................................... 87
     §1501. Income Tax Withholding Tables ............................................................................................. 87
     §1505. Electronic Systems for Withholding Exemption Certificates ............................................... 102
     §1510. Requirements for Substitute Form W-2, Copy 2, Furnished to Payees ................................. 103
     §1515. Withholding Tax Annual Reconciliation And Employee Withholding
               Statements―Electronic Filing Requirements ....................................................................... 103
     §1520. Withholding by Professional Athletic Teams ........................................................................ 104
     §1525. Income Tax Withholding on Gaming Winnings ................................................................... 105
   Chapter 16. Louisiana Entertainment Industry Tax Credit Programs 105
   Subchapter A. Motion Picture Investor Tax Credit Program ................................................................. 105
     §1601. Purpose .................................................................................................................................. 105
     §1603. General Description ............................................................................................................... 106
     §1605. Definitions ............................................................................................................................. 106
     §1607. Certification Procedures ........................................................................................................ 108
     §1609. Additional Program Provisions―Production ........................................................................ 110
     §1611. Additional Program Provisions―Infrastructure .................................................................... 111
     §1613. Application of the Tax Credit ................................................................................................ 112
   Subchapter B. Louisiana Filmmakers Grant Fund Program ................................................................... 113
     §1615. Preamble and Purpose ........................................................................................................... 113
     §1616. Definitions ............................................................................................................................. 113
     §1617. General Principles ................................................................................................................. 114
     §1619. Program Descriptions ............................................................................................................ 114
     §1621. Eligibility ............................................................................................................................... 114
     §1623. Criteria ................................................................................................................................... 114
     §1625. Application Procedure ........................................................................................................... 115
     §1627. Submission and Review Procedure ....................................................................................... 115
     §1629. General Award Provisions ..................................................................................................... 115



Louisiana Administrative Code                        December 2011           ii
                                                                Table of Contents

Subchapter C. Louisiana Sound Recording Investor Tax Credit Program ............................................. 116
  §1631. Purpose and Description of Louisiana Sound Recording Investor Tax Credit Program ....... 116
  §1633. Definitions ............................................................................................................................. 116
  §1635. Rules of Application .............................................................................................................. 117
  §1637. Certification ........................................................................................................................... 117
  §1639. Credits .................................................................................................................................... 120
Subchapter D. Louisiana Digital Media Act ........................................................................................... 120
  §1661. Purpose .................................................................................................................................. 120
  §1663. General Description ............................................................................................................... 120
  §1665. Definitions ............................................................................................................................. 120
  §1667. Certification Procedures ........................................................................................................ 122
  §1669. Application and Transfer of Tax Credits ............................................................................... 124
  §1671. Recapture and Recovery of Tax Credits ................................................................................ 125
  §1673. Agreed Upon Accounting Procedures ................................................................................... 125
Subchapter E. Musical and Theatrical Production Income Tax Credit Program .................................... 127
  §1690. Purpose .................................................................................................................................. 127
  §1691. General Description ............................................................................................................... 127
  §1692. Definitions ............................................................................................................................. 128
  §1693. Certification Procedures ........................................................................................................ 129
  §1695. Additional Program Procedures—Production ....................................................................... 131
  §1697. Certification Procedures—Infrastructure .............................................................................. 132
  §1699. Application of the Tax Credit ................................................................................................ 133
Chapter 19. Miscellaneous Tax Exemptions, Credits and Deductions .................................................... 133
  §1901. Employer Tax Credits for Donations of Materials, Equipment, or Instructors to Certain
            Training Programs or Schools ............................................................................................... 133
  §1902. Inventory Tax Credits ............................................................................................................ 134
  §1903. Administration of the School Readiness Tax Credits ............................................................ 134
  §1905. Telephone Company Property Assessment Relief Fund ....................................................... 136
  §1907. Income Tax Credits for Wind or Solar Energy Systems ....................................................... 136
  §1909. National Center for Construction Education and Research Apprenticeship Tax Credits ..... 139
  §1911. Louisiana New Markets Tax Credit ...................................................................................... 140
Chapter 29. Natural Resources: Severance Tax ....................................................................................... 141
  §2901. Severance Tax on Timber, Pulpwood and Minerals Other Than Gas and Oil ...................... 141
  §2903. Severance Taxes on Oil; Distillate, Condensate or Similar Natural Resources; Natural
            Gasoline or Casinghead Gasoline; Liquefied Petroleum Gases and Other Natural Gas
            Liquids; and Gas .................................................................................................................... 143
Chapter 31. Petroleum Products: Gasoline Tax ....................................................................................... 147
  §3101. Government Exemptions ....................................................................................................... 147
  §3103. Bonded Jobbers ..................................................................................................................... 148
  §3105. Purchase, Storage and Use of Refund Gasoline by Farmers, Fishermen and Operators of
            Aircraft .................................................................................................................................. 148
  §3107. Sale of Refund Gasoline by Dealers ...................................................................................... 149
Chapter 33. Petroleum Products: Special Fuels Tax ................................................................................ 149
Subchapter A. Retail Dealers of Special Fuels ......................................................................................... 149
  §3301. Definitions ............................................................................................................................. 149
  §3303. Collection and Payment of Tax ............................................................................................. 150
  §3305. Records Required; Invoices; False or Inadequate Records a Violation ................................ 150
  §3307. Sale of Dyed Special Fuels .................................................................................................... 150



                                                                          iii          Louisiana Administrative Code                    December 2011
                                                                  Table of Contents

   Subchapter B. Users of Special Fuels ....................................................................................................... 151
     §3351. Provisions Relating to Users of Special Fuels ....................................................................... 151
     §3353. Invoice Requirements ............................................................................................................ 152
     §3355. Refunds or Credits; Undyed Diesel Fuel Used for Other than Highway Purposes ............... 153
     §3357. Use by State Agencies, Parish and Municipal Governments, and Other Political
               Subdivisions .......................................................................................................................... 153
     §3359. Sales; Uses of Dyed Fuel ....................................................................................................... 153
     §3361. Use by Farmers ...................................................................................................................... 154
     §3363. Use of Dyed Special Fuel by Fire Trucks ............................................................................. 154
   Chapter 35. Petroleum Products: Provisions Common to Taxes on Gasoline or Motor Fuel and
               Lubricating Oils ..................................................................................................................... 154
     §3501. Designated Routes ................................................................................................................. 154
   Chapter 39. Public Utilities and Carriers: Transportation and Communications Tax .............................. 155
     §3901. Provisions Relating to the Transportation and Communications Tax ................................... 155
   Chapter 41. Public Utilities and Carriers: Natural Gas Franchise Tax ..................................................... 155
     §4101. Imposition of Tax .................................................................................................................. 155
     §4103. Gross Receipts; General Definition ....................................................................................... 155
     §4105. Gross Receipts; Interstate Business ....................................................................................... 156
     §4107. Gross Receipts; Transportation for Own Use ........................................................................ 156
   Chapter 43. Sales and Use Tax ................................................................................................................. 156
     §4301. Uniform State and Local Sales Tax Definitions .................................................................... 156
     §4302. Pollution Control Devices and Systems Excluded from the Definition of "Sale at Retail" .. 171
     §4303. Imposition of Tax .................................................................................................................. 173
     §4305. Imposition of Tax .................................................................................................................. 174
     §4307. Collection .............................................................................................................................. 174
     §4309. Collection of Tax ................................................................................................................... 178
     §4311. Treatment of Tax by Dealer .................................................................................................. 178
     §4351. Returns and Payment of Tax, Penalty for Absorption of Tax ............................................... 179
     §4353. Collection from Interstate and Foreign Transportation Dealers ............................................ 181
     §4355. Collector's Authority to Determine the Tax in Certain Cases ............................................... 182
     §4357. Termination or Transfer of a Business .................................................................................. 182
     §4359. Dealers Required to Keep Records ........................................................................................ 182
     §4361. Wholesalers and Jobbers Required to Keep Records ............................................................ 183
     §4363. Collector's Authority to Examine Records of Transportation Companies ............................ 183
     §4365. Failure to Pay Tax on Imported Tangible Personal Property; Grounds for Attachment ....... 183
     §4367. Failure to Pay Tax; Rule to Cease Business .......................................................................... 183
     §4369. Sales Returned to Dealer; Credit or Refund of Tax .............................................................. 184
     §4371. Sales Tax Refund for Tangible Personal Property Destroyed in a Natural Disaster ............. 185
     §4373. Nonresident Contractors ........................................................................................................ 185
   Chapter 44. Sales and Use Tax Exemptions ............................................................................................. 187
     §4401. Various Exemptions from Tax .............................................................................................. 187
     §4402. Exemptions from Lease or Rental Tax, Helicopters ............................................................. 191
     §4403. Ships and Ships' Supplies ...................................................................................................... 191
     §4404. Seeds Used in Planting of Crops ........................................................................................... 192
     §4406. Little Theater Tickets ............................................................................................................ 192
     §4407. Tickets to Musical Performances of Nonprofit Musical Organizations ................................ 192
     §4408. Pesticides Used for Agricultural Purposes ............................................................................ 193
     §4409. Motion Picture Film Rental ................................................................................................... 193
     §4410. Property Purchased for First Use Outside the State .............................................................. 193
     §4411. Contracts Prior to and within 90 Days of Tax Levy .............................................................. 195

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                                                                 Table of Contents

   §4413.   Admissions to Entertainment Furnished by Certain Domestic Nonprofit Corporations ....... 195
   §4414.   Cable Television Installation and Repair .............................................................................. 195
   §4415.   Certain Self-Propelled Vehicles Removed from Inventory ................................................... 196
   §4416.   Purchases of Mardi Gras Specialty Items .............................................................................. 196
   §4417.   Exclusions and Exemptions; Purchases Made with United States Department of
            Agriculture Food Stamp Coupons and Purchases Made under the Women, Infants, and
            Children's Program ................................................................................................................ 197
  §4418. Nonprofit Organizations; Nature of Exemption; Limitations; Qualifications ....................... 197
  §4420. Property Used in Interstate Commerce .................................................................................. 198
  §4423. State Sales Tax Holiday on Purchases of Hurricane-Preparedness Items ............................. 199
Chapter 49. Tax Collection ....................................................................................................................... 200
  §4901. Alternative Remedies for the Collection of Taxes ................................................................ 200
  §4903. Timely Filing When the Due Date Falls on Saturday, Sunday, or Legal Holiday ................ 202
  §4905. Signature Alternatives; Electronic Filings ............................................................................. 202
  §4906. Signature Alternatives for Preparers ..................................................................................... 202
  §4907. Remittance of Tax under Protest, Suits to Recover ............................................................... 202
  §4908. Insufficient Funds Checks ..................................................................................................... 203
  §4909. Refund Claims ....................................................................................................................... 203
  §4910. Electronic Funds Transfer ..................................................................................................... 203
  §4911. File Date of Returns and Other Documents; Payment Dates ................................................ 205
  §4913. Collection of In-State Tax Liabilities by Debt Collection Agencies or the Attorney
            General's Office ..................................................................................................................... 206
Chapter 51. Tobacco Tax ......................................................................................................................... 207
  §5101. Reporting of Certain Imported Cigarettes; Penalty ............................................................... 207
Chapter 53. Miscellaneous Fees ............................................................................................................... 207
  §5301. Oilfield Site Restoration Fee ................................................................................................. 207
  §5302. Issuance and Cancellation of a Lien; Fees ............................................................................ 208
                            Part III. Administrative Provisions and Miscellaneous
Chapter 1.      Agency Guidelines .................................................................................................................. 211
  §101.         Policy Statements .................................................................................................................. 211
Chapter 3.      Alternative Dispute Resolution Procedures ............................................................................ 214
  §301.         Definitions ............................................................................................................................. 214
  §303.         Type of Alternative Dispute Resolution Process ................................................................... 214
  §305.         Initiation of Arbitration ......................................................................................................... 214
  §307.         Persons Authorized to Participate in Arbitration ................................................................... 215
  §309.         Registry of Arbitrators ........................................................................................................... 215
  §311.         Time Delay for Providing Names of Arbitrators ................................................................... 215
  §313.         Selection of Arbitration Company ......................................................................................... 215
  §315.         Disclosure of Conflict of Interest .......................................................................................... 215
  §317.         Procedures for Arbitration ..................................................................................................... 215
  §319.         Discovery ............................................................................................................................... 216
  §321.         Arbitration Hearing ............................................................................................................... 216
  §323.         Sequence of the Arbitration Hearing ..................................................................................... 216
  §325.         Ex Parte Communication with the Arbitrator ........................................................................ 216
  §327.         Privacy ................................................................................................................................... 217
  §329.         Confidentiality ....................................................................................................................... 217
  §331.         Fees and Expenses ................................................................................................................. 217
  §333.         Taxpayer's Duty to Protect Protests and Appeals .................................................................. 217
  §335.         Notice of a Waiver or Extension ........................................................................................... 217

                                                                            v           Louisiana Administrative Code                       December 2011
                                                                     Table of Contents

   Chapter 5. Authorized Representatives .................................................................................................... 218
     §501.     Designation of Tax Matters Person ....................................................................................... 218
   Chapter 11. Donations .............................................................................................................................. 219
     §1101. Donations to the Louisiana Military Family Assistance Fund .............................................. 219
   Chapter 15.     Mandatory Electronic Filing of Tax Returns and Payment ............................................ 220
     §1501. Requirement for Tax Preparers to File Income Tax Returns Electronically ......................... 220
     §1511. Lessors of Motor Vehicles—Electronic Filing Requirement ................................................ 220
     §1513. Automobile Rental Tax Return, Form R-1329—Electronic Filing Requirement ................ 221
     §1515. Tax Increment Financing District Sales Tax Returns, Form R-1029—Electronic Filing
               Requirement .......................................................................................................................... 221
     §1517. Hotel and Motel Sales Tax Return, Form R-1029DS—Electronic Filing Requirement ...... 221
     §1519. New Orleans Exhibition Hall Authority Additional Room Occupancy Tax and Food and
               Beverage Tax Return, Form R-1325—Electronic Filing Requirement ................................. 222
     §1521. Louisiana State and Parish and Municipalities Beer Tax Return, Form
               R-5621—Electronic Filing Requirement .............................................................................. 222
     §1523. Hotel/Motel Sales Tax Return, Form R-1029H/M—Electronic Filing Requirement .......... 222
     §1525. Severance Tax—Oil or Gas ............................................... Error! Bookmark not defined.223
     §1527. Electronic Filing Mandate for Reports and Returns related to the Sports Facility
               Assistance Fund ..................................................................................................................... 223
     §1532. Payment of Taxes by Credit or Debit Cards; Other .............................................................. 224
   Chapter 21. Interest and Penalties ............................................................................................................ 226
     §2101. Penalty Waiver ...................................................................................................................... 226
     §2115. Abatement and Compromise of Interest ................................................................................ 227
     §2116. Interest Waiver and Filing Extensions Following Disasters ................................................. 227
   Chapter 25.    Returns ............................................................................................................................. 228
     §2501. Individual Income Tax Filing Extensions ............................................................................. 228
     §2503. Corporation Income and Franchise Tax Filing Extensions ................................................... 228
                                                     Part V. Ad Valorem Taxation
   Chapter 1.      Constitutional and Statutory Guides to Property Taxation ..................................................... 229
     §100.          Introduction ........................................................................................................................... 229
     §101.          Constitutional Principles for Property Taxation .................................................................... 229
     §103.          Exempt Property .................................................................................................................... 232
     §105.          Constitutional Principles in Determination of Fair Market Value and Use of Reappraisal .. 233
     §107.          Statutory Guide for Property Taxation .................................................................................. 233
     §109.          Fair Market Value Defined .................................................................................................... 234
     §111.          Criteria for Determining Fair Market Value ......................................................................... 234
     §113.          Assessments: General Information ........................................................................................ 234
     §114.          Property Defined ................................................................................................................... 234
     §115.          Real Property Defined ........................................................................................................... 234
     §117.          Personal Property Defined ..................................................................................................... 234
     §118.          Data Collection by the Assessor ............................................................................................ 235
     §119.          Forms ..................................................................................................................................... 235
     §121.          Reappraisal ............................................................................................................................ 235
     §123.          Statutes Pertaining to Specific Personal Property ................................................................. 235
     §125.          Statutes Pertaining to Specific Real Property ........................................................................ 235
   Chapter 2.      Policies and Procedures for Assessment and Change Order Practices ................................. 236
     §201.          Introduction ........................................................................................................................... 236
     §203.          Change Orders ....................................................................................................................... 236
     §207.          Use Value Properties ............................................................................................................. 237

Louisiana Administrative Code                         December 2011            vi
                                                                Table of Contents

  §209.     Non-Profit Organizations ...................................................................................................... 238
  §211.     Industrial Exemption Properties ............................................................................................ 238
  §213.     Assessment Policies and Procedures ..................................................................................... 238
Chapter 3. Real and Personal Property ...................................................................................................... 239
  §301.     Definitions ............................................................................................................................. 239
  §303.     Real Property ......................................................................................................................... 240
  §304.     Electronic Change Order Specifications, Property Classifications Standards and
            Electronic Tax Roll Export Specifications ............................................................................ 241
  §305.     Real Property Report Forms .................................................................................................. 255
  §307.     Personal Property Report Forms ........................................................................................... 255
  §309.     Tax Commission Miscellaneous Forms ................................................................................ 256
Chapter 5. Loan and Finance Companies ................................................................................................. 256
  §501.     Guidelines for Ascertaining Fair Market Value of Loan and Finance Company Personal
            Property ................................................................................................................................. 256
Chapter 7. Watercraft ............................................................................................................................... 257
  §701.     Guidelines for Ascertaining Fair Market Value of Watercraft .............................................. 257
  §703.     Tables―Watercraft ............................................................................................................... 257
  §705.     Tables―Watercraft ............................................................................................................... 258
Chapter 9. Oil and Gas Properties ........................................................................................................... 260
  §901.     Guidelines for Ascertaining the Fair Market Value of Oil and Gas Properties ..................... 260
  §903.     Instructions for Reporting Oil and Gas Properties ................................................................ 261
  §905.     Reporting Procedures ............................................................................................................ 261
  §907.     Valuation of Oil, Gas, and Other Wells ................................................................................ 262
Chapter 11. Drilling Rigs and Related Equipment ................................................................................... 267
  §1101. Guidelines for Ascertaining the Fair Market Value of Drilling Rigs and Related
            Equipment .............................................................................................................................. 267
  §1103. Drilling Rigs and Related Equipment Tables ........................................................................ 267
Chapter 13. Pipelines ................................................................................................................................ 269
  §1301. Guidelines for Ascertaining the Fair Market Value of Pipelines .......................................... 269
  §1303. Instructions for Reporting "Other Pipelines" ......................................................................... 269
  §1305. Reporting Procedures ............................................................................................................ 270
  §1307. Pipeline Transportation Tables .............................................................................................. 270
Chapter 15. Aircraft .................................................................................................................................. 271
  §1501. Guidelines for Ascertaining the Fair Market Value of Aircraft ............................................ 271
  §1503. Aircraft (Including Helicopters) Table .................................................................................. 271
Chapter 17. Inventories ............................................................................................................................ 272
  §1701. Guidelines for Ascertaining the Fair Market Value of Inventories ....................................... 272
  §1703. Addendum ............................................................................................................................. 273
Chapter 19. Leasehold Improvements ...................................................................................................... 273
  §1901. Guidelines for Ascertaining the Fair Market Value of Leasehold Improvements ................ 273
  §1903. Reporting and Assessment of Leasehold Improvements ....................................................... 273
Chapter 21. Leased Equipment ................................................................................................................. 273
  §2101. Guidelines for Ascertaining the Fair Market Value of Leased Equipment ........................... 273
Chapter 23. Insurance Companies ............................................................................................................ 274
  §2301. Guidelines for Ascertaining the Fair Market Value of Insurance Companies ...................... 274
  §2303. Exemption of Life Insurance Companies and Other Insurance Premiums ........................... 274




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                                                                   Table of Contents

   Chapter 25. General Business Assets ....................................................................................................... 274
     §2501. Guidelines for Ascertaining the Fair Market Value of Office Furniture and Equipment,
               Machinery and Equipment, and Other Assets Used in General Business Activity ............... 274
     §2503. Tables Ascertaining Economic Lives, Percent Good and Composite Multipliers of
               Business and Industrial Personal Property ............................................................................ 276
   Chapter 27. Guidelines for Application, Classification and Assessment of Land Eligible to be
               Assessed at Use Value ........................................................................................................... 280
     §2701. Definitions of Land Eligible for Use Value Assessment ....................................................... 280
     §2703. Eligibility Requirements and Application for Use Value Assessment .................................. 280
     §2705. Classification ......................................................................................................................... 281
     §2707. Map Index Table .................................................................................................................... 281
     §2709. Assessment and Classification―Agricultural and Horticultural .......................................... 282
     §2711. Tables―Agricultural and Horticultural Lands ...................................................................... 282
     §2713. Assessment of Timberland .................................................................................................... 282
     §2715. Assessment of Marsh Land ................................................................................................... 283
     §2717. Tables―Use Value ................................................................................................................ 283
   Chapter 29. Public Service Properties ...................................................................................................... 284
     §2901. Non-Operating or Non-Utility Property ................................................................................ 284
     §2903. Immovable Property of Electric Membership Corporations, Electric Power Companies,
               Gas Companies, Pipeline Companies, Railroad Companies, Telegraph Companies,
               Telephone Companies and Water Companies Assessed as Public Service Companies by
               the Louisiana Tax Commission ............................................................................................. 284
     §2905. Report of Values to the Assessor ........................................................................................... 284
     §2909. Appraisal of Public Service Properties .................................................................................. 284
   Chapter 31. Public Exposure of Assessments; Appeals ............................................................................ 285
     §3101. Public Exposure of Assessments, Appeals to the Board of Review and Board of Review
               Hearings ................................................................................................................................. 285
     §3103. Appeals to the Louisiana Tax Commission ........................................................................... 286
     §3105. Practice and Procedure for Public Service Properties Hearings ............................................ 289
     §3106. Practice and Procedure for the Appeal of Bank Assessments ............................................... 290
     §3107. Practice and Procedure for the Appeal of Insurance Credit Assessments ............................. 292
   Chapter 33. Financial Institutions ............................................................................................................. 294
     §3301. Guidelines for Ascertaining the Fair Market Value of Financial Institutions ....................... 294
     §3303. Allocation for Credit Purposes of Assessments Not Directly Attributable to a
               Specific Office ....................................................................................................................... 295
     §3305. Listing and Assessing of Stock; Place (Multi-Parish Branch Offices) .................................. 295
     §3307. Methods of Branch Office Allocations .................................................................................. 295
     §3309. Listing and Assessing of Stock; Branch Offices ................................................................... 295
   Chapter 35. Miscellaneous ....................................................................................................................... 296
     §3501. Service Fees―Tax Commission ........................................................................................... 296
     §3503. Homestead Exemptions ......................................................................................................... 296
     §3505. Housing for the Homeless ..................................................................................................... 296
     §3507. Claim for Taxes Paid in Error ............................................................................................... 297
     §3509. Tulane University―Exemption Allocation Regulation ........................................................ 298
     §3511. Tulane University―Purpose ................................................................................................. 298
     §3513. Tulane University―Definitions ............................................................................................ 299
     §3515. General Rule .......................................................................................................................... 300
     §3517. Tulane University―Reporting and Valuation Procedure ..................................................... 300
     §3519. Tulane University―Allocation Formula ............................................................................... 301


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   §3521.   Tulane University―Allocation Report ................................................................................. 301
   §3523.   Tulane University―Forms .................................................................................................... 302
   §3525.   Reporting of Certain Property Assessments by Assessors and Louisiana Tax Commission
            Members ................................................................................................................................ 302
Chapter 37. Reassessment Guidelines Pursuant to R.S. 47.1978 and 1978.1 ......................................... 302
  §3701. Listing and Assessing of Overflowed Lands ......................................................................... 302
  §3702. Listing and Assessing of Land and Property Damaged or Destroyed during a Disaster or
            Emergency Declared by the Governor or Fire ...................................................................... 302




                                                                         ix          Louisiana Administrative Code                    December 2011
                                                   Title 61
                                            REVENUE AND TAXATION
             Part I. Taxes Collected and Administered by the Secretary of Revenue


     Chapter 1. Office of the Secretary                              testing levels and confirmatory testing levels as established
                                                                     in the contract between the state of Louisiana and the official
§101.    Drug Free Workplace and Drug Testing                        provider of drug testing services will classify alcohol as an
                                                                     illegal drug.
  A. Introduction and Purpose
                                                                          Public Vehicle—any motor vehicle, water craft, air craft
     1. The employees of the Department of Revenue are               or rail vehicle owned or controlled by the state of Louisiana.
among the state's most valuable resources, and the physical
and mental well-being of our employees is necessary for                  Random Testing—testing randomly performed on
them to properly carry out their responsibilities. Substance         employees holding a safety-sensitive or security-sensitive
abuse causes serious adverse consequences to users,                  position. The secretary shall periodically call for a sample of
affecting their productivity, health and safety, dependents,         such employees, selected at random by a computer generated
and co-workers, as well as the general public.                       random selection process.
                                                                         Reasonable Suspicion―belief based upon reliable,
     2. The state of Louisiana and the Department of
                                                                     objective and articulable facts derived from direct
Revenue have a long-standing commitment to working
                                                                     observation of specific physical, behavioral, odorous
toward a drug-free, alcohol-free workplace. In order to curb
                                                                     presence, or performance indicators and being of sufficient
the use of illegal drugs by employees of the state of
                                                                     import and quantity to lead a prudent person to suspect that
Louisiana, the Louisiana Legislature enacted laws that
                                                                     an employee is in violation of this regulation.
provide for the creation and implementation of drug testing
programs for state employees. Further, the Governor of the                Safety-Sensitive or Security-Sensitive Position—a
State of Louisiana issued Executive Orders KBB 2005-08               position determined by the secretary to contain duties of
and 2005-11 providing for the promulgation by executive              such nature that the compelling state interest to keep the
agencies of written policies mandating drug testing of               incumbent drug-free and alcohol-free outweighs the
employees, appointees, prospective employees and                     employee's privacy interests. Positions considered as safety-
prospective appointees, pursuant to R.S. 49:1001 et seq.             sensitive or security-sensitive are listed in §101.J. These
                                                                     positions were determined with consideration of statutory
  B. Applicability                                                   law, jurisprudence, and the practices of this agency.
    1. This regulation applies to all Department of                  Examples of safety-sensitive and security-sensitive positions
Revenue employees including appointees and all other                 are as follows:
persons having an employment relationship with this agency.                 a. positions with duties that are required or are
  C. Definitions                                                     authorized to carry a firearm;
                                                                           b. positions with duties that require operation or
    Controlled Substances—a drug, chemical substance or
                                                                     maintenance of any heavy equipment or machinery, or the
immediate precursor in Schedules I through V of R.S.
                                                                     supervision of such an employee;
40:964 or Section 202 of the Controlled Substances Act (21
U.S.C. 812).                                                               c. positions with duties that require the operation or
                                                                     maintenance of a public vehicle, or the supervision of such
     Designer (Synthetic) Drugs—those chemical substances            an employee.
that are made in clandestine laboratories where the
molecular structure of both legal and illegal drugs is altered           Secretary—Secretary of the Department of Revenue.
to create a drug that is not explicitly banned by federal law.           Testing with Cause—testing performed on employees
                                                                     on the basis of reasonable suspicion, post accident,
     Employee—unclassified, classified, and student
                                                                     rehabilitation monitoring, or possession of illegal drugs or
employees, student interns, and any other person having an
                                                                     drug paraphernalia while in the workplace.
employment relationship with this agency, regardless of the
appointment type (e.g., full time, part time, temporary,                  Under the Influence—for the purposes of this
restricted, detailed, job appointment, etc.).                        regulation, a drug, chemical substance, or the combination of
                                                                     a drug or chemical substance that affects an employee in any
     Illegal Drug—any drug that is not legally obtainable or         detectable manner. The symptoms or influence are not
that has not been legally obtained, to include prescribed            confined to that consistent with misbehavior, nor to obvious
drugs not legally obtained and prescribed drugs not being            impairment of physical or mental ability, such as slurred
used for prescribed purposes or being used by one other than         speech, or difficulty in maintaining balance. A determination
the person for whom prescribed. For purposes of this                 of influence can be established by a professional opinion or
regulation, alcohol consumption at or above the initial              a scientifically valid test.


                                                                 1       Louisiana Administrative Code              December 2011
                                                     REVENUE AND TAXATION

     Workplace—any location on agency property including                       5.     Safety-Sensitive and Security-Sensitive Positions
all property, offices, and facilities, including all vehicles and
                                                                               a. Appointments and Promotions. Each employee
equipment, whether owned, leased, or otherwise used by the
                                                                        who is offered a safety-sensitive or security-sensitive
agency or by an employee on behalf of the agency in the
                                                                        position as defined in §101.J shall be required to pass a drug
conduct of its business in addition to any location from
                                                                        test before being placed in such position, whether through
which an individual conducts agency business while such
                                                                        appointment or promotion. All such testing shall, if
business is being conducted.
                                                                        applicable, occur during the selected employee's work
  D. Drug-Free Workplace Policy                                         schedule.
    1. It shall be the policy of the Department of Revenue                     b. Random Testing. Every employee in a safety-
to maintain a drug-free, alcohol-free workplace and a                   sensitive or security-sensitive position shall be required to
workforce free of substance abuse.                                      submit to drug testing as required by the secretary, who shall
                                                                        periodically call for a sample of such employees, selected at
     2. Employees are prohibited from reporting to work or
                                                                        random by a computer-generated random selection process,
performing work with the presence in their bodies of illegal
                                                                        and require them to report for testing. All such testing shall,
drugs, controlled substances, designer (synthetic) drugs, or
                                                                        if applicable, occur during the selected employee's work
alcohol at or above the initial testing levels and confirmatory
                                                                        schedule.
testing levels as established in the contract between the state
of Louisiana and the official provider of drug testing                      6. Employees in Possession of Illegal Drugs. Any
services.                                                               employee previously found in possession of suspected illegal
                                                                        drugs or drug paraphernalia in the workplace shall be
     3. Employees are further prohibited from the illegal
                                                                        required to submit to subsequent random drug tests.
use, possession, dispensation, distribution, manufacture, or
sale of controlled substances, designer (synthetic) drugs,                F.        Drug and Alcohol Testing Procedure
illegal drugs, and alcohol at the work site and while on
                                                                            1. Drug testing pursuant to this regulation shall be
official state business, on duty or on call for duty.
                                                                        conducted for the presence of any illegal drugs, including,
   E. Conditions Requiring Drug Tests. Drug and alcohol                 cannabinoids (marijuana metabolites), cocaine metabolites,
testing shall be required under the following conditions.               opiate metabolites, phencyclidine, and amphetamines in
                                                                        accordance with the provisions of R.S. 49:1001 et seq. The
    1. Reasonable Suspicion. Any employee shall be
                                                                        Department of Revenue reserves the right to test its
required to submit to a drug and alcohol test if there is
                                                                        employees for the presence of alcohol, any other illegal
reasonable suspicion, as defined in §101.C.Reasonable
                                                                        drugs, or controlled substances when there is reasonable
Suspicion, that the employee is using illegal drugs or is
                                                                        suspicion to do so. For purposes of this regulation, alcohol
under the influence of alcohol while on duty.
                                                                        consumption at or above the initial testing levels and
    2. Post Accident. Each employee involved in an                      confirmatory testing levels as established in the contract
accident that occurs during the course and scope of                     between the state of Louisiana and the official provider of
employment shall be required to submit to a drug and                    drug testing services will classify alcohol as an illegal drug.
alcohol test if the accident:
                                                                             2. The Director of Human Resources and the secretary
       a. involves circumstances leading to a reasonable                shall be involved in any determination that one of the above-
suspicion of the employee's drug or alcohol use; or                     named conditions requiring drug and alcohol testing exists.
                                                                        All recommendations for drug testing must be approved by
       b.   results in a fatality.                                      the secretary. Upon final determination by the responsible
     3. Rehabilitation Monitoring. Any employee who is                  officials, the Director of the Human Resources shall notify
participating in a substance abuse after-treatment program or           the supervisor of the employee to be tested, and the
who has a rehabilitation agreement with the agency                      supervisor shall immediately notify the employee where and
following an incident involving substance abuse shall be                when to report for the testing.
required to submit to periodic drug testing.                                3. Testing services shall be performed by a provider
     4. Pre-Employment. Each prospective employee shall                 chosen by the Office of State Purchasing, Division of
be required to submit to drug screening at the time and place           Administration, pursuant to applicable bid laws. At a
designated by the Director of the Human Resources                       minimum, the testing service shall assure the following.
following a job offer contingent upon a negative drug-testing
                                                                               a. All specimen collections will be performed in
result. A prospective employee who tests positive for the
                                                                        accordance with applicable federal and state regulations and
presence of drugs in the initial screening or who fails to              guidelines to ensure the integrity of the specimen and the
submit to drug testing shall be eliminated from consideration           privacy of the donor. The Director of Human Resources shall
for employment. Employees transferring to the department
                                                                        review and concur in advance with any decision by a
from other state agencies without a break in service are
                                                                        collection site person to obtain a specimen under direct
exempt from pre-employment testing.
                                                                        supervision. All direct observation shall be conducted by a
                                                                        person of the same-sex at the collection site.


Louisiana Administrative Code                  December 2011        2
                                                            Title 61, Part I

       b. Chain of custody forms must be provided to                       I.     Violation of the Regulation
ensure the integrity of each urine specimen by tracking its
                                                                            1. All initial screening tests with positive results must
handling and storage from point of collection to final
                                                                        be confirmed by a second test with the results reviewed by a
disposition.
                                                                        medical review officer.
       c. Testing shall be performed by a Substance Abuse
Mental Services Health Administration (SAMSHA) certified                        a. A breath test resulting in 0.08 or greater alcohol
laboratory.                                                             concentration level will be considered an initial positive
                                                                        result.
       d. The laboratory shall use a cut-off of 50 ng/ml for
a positive finding in testing for cannabinoids.                                b. If a positive test result occurs, the confirmation
                                                                        test will be performed within 30 minutes, but not less than
       e. The laboratory shall use a concentration cut-off
                                                                        15 minutes, of completion of the initial screening test.
of 0.08 or more for the initial positive finding in testing for
alcohol.                                                                        c. Urine samples will be tested using the split
      f. All positives reported by the laboratory must be               sample method, with a confirmation test performed on the
confirmed by gas chromatography/mass spectrometry.                      second half of the sample in the event that a positive test
                                                                        result occurs.
     4. All confirmed positive results of alcohol and drug
testing shall be reported by the laboratory to a qualified                  2. If the confirmation test produces positive results,
medical review officer.                                                 the    medical   review     officer    will    contact     the
                                                                        employee/applicant prior to posting the results of the test as
  G. Confidentiality
                                                                        positive.
     1. All information, interviews, reports, statements,
memoranda, or test results received through this drug testing                 a. The employee/applicant            will have the
program are confidential communications, pursuant to R.S.               opportunity to verify the legitimacy of the result, i.e.,
49:1012, and may not be used or received in evidence,                   producing a valid prescription in his/her name.
obtained in discovery, or disclosed in any public or private                   b. If the employee applicant is able to successfully
proceedings, except in an administrative or disciplinary                verify the legitimacy of the positive results, the medical
proceeding or hearing, or civil litigation where drug use by            review officer will confirm the result as negative and report
the tested individual is relevant.                                      the results to the department.
    2. All records regarding this policy shall be                              c. If the employee is unable to successfully verify
maintained by the Director of Human Resources in a                      the legitimacy of the positive results, the employee shall be
secured, confidential file.                                             subject to disciplinary action up to and including possible
  H. Responsibilities                                                   termination of employment, as determined by the secretary.
     1. The secretary is responsible for the overall                         3. Each violation and alleged violation of this
compliance with this regulation and shall submit to the                 regulation will be handled individually, taking into account
Office of the Governor, through the Commissioner of                     all data, including the risk to self, fellow employees, and the
Administration, a report on this regulation and drug testing            general public.
program, describing progress, the number of employees
affected, the categories of testing being conducted, the                     4. Any employee whose drug test is confirmed
associated costs for testing, and the effectiveness of the              positive may make a written request for access to records
program by November 1 of each year.                                     relating to his drug tests and any records relating to the
                                                                        results of any relevant certification, review, or
     2. The Director of the Human Resources is                          suspension/revocation-of-certification proceedings within
responsible for administering the drug and alcohol testing              seven working days.
program; recommending to the secretary when drug testing
is appropriate; receiving, acting on, and holding confidential               5. The secretary may, but shall not be required to,
all information received from the testing services provider             allow an employee whose drug test is certified positive by
and from the medical review officer; collecting appropriate             the medical review officer the opportunity to undergo
information necessary to agency defense in the event of legal           rehabilitation without termination of employment, subject to
challenge; and providing the secretary with the data                    the employee complying with the following conditions.
necessary to submit a detailed report to the Office of the                    a. The employee must meet with an approved
Governor as described above.                                            chemical abuse counselor for a substance abuse evaluation.
     3. All supervisory personnel are responsible for                         b. The employee must release the substance abuse
reporting to the Director of Human Resources any employee               evaluation before returning to work.
they suspect may be under the influence of any illegal drug,
                                                                               c. The employee shall be screened on a periodic
alcohol, or chemical substance. Supervisory personnel are
                                                                        basis for not less than 12 months nor more than 60 months.
also responsible for assuring that each employee under their
supervision understands or is given the opportunity to                         d. The employee will be responsible for costs
understand and have questions answered about this                       associated with follow-up testing, return to duty testing,
regulation's contents.                                                  counseling and any other recommended treatment.

                                                                   3            Louisiana Administrative Code          December 2011
                                                    REVENUE AND TAXATION

     6. Positive post accident or return to duty tests will                  a. Alcohol          Beverage        Control      Investigator
result in the employee's immediate dismissal.                          Supervisor
    7. Any employee who refuses to submit to a urine test                      b.     Alcohol Beverage Control Investigator
for the presence of illegal drugs or a breath test for the
                                                                               c.     Alcohol Beverage Control Manager
presence of alcohol shall be subject to the consequences of a
positive test.                                                                 d.     Alcohol Beverage Control Staff Officer
     8. In the event that a current or prospective employee                    e.     Alcohol Beverage Control Special Investigator
receives a confirmed positive test result, the employee may
                                                                               f.     Alcohol and Tobacco Control Agent 1-6
challenge the test results within 72 hours of actual
notification.                                                                  g.     Alcohol and Tobacco Control Commissioner
       a. The employee's challenge will not prevent the                    h. Alcohol            and    Tobacco      Control      Deputy
employee from being placed on suspension pending the                   Commissioner
investigation until the challenge is resolved.
                                                                              i. Alcohol        and    Tobacco      Control     Financial
        b. The employee may submit a written explanation               Investigator 1-2
of the reason for the positive test result to the medical review
officer.                                                                      j. Alcohol         and    Tobacco      Control      Special
                                                                       Investigator 1-2
       c. Employees who are on legally prescribed and
obtained medication for a documented illness, injury or                        k.     Alcohol and Tobacco Control Specialist
ailment will be eligible for continued employment upon                       l.       Special    Investigation      Division—Assistant
receiving clearance from the medical review officer.                   Director
    9. In the event that a current or prospective employee                     m. Special Investigations Division—Director
remains unable to provide a sufficient urine specimen or
amount of breath, the collector or Breath Alcohol Technician                   n.     Special Investigations Division—Revenue Agent
(BAT) must discontinue testing and notify the Director of              3
Human Resources of their actions.                                        AUTHORITY NOTE: Promulgated in accordance with
                                                                       Executive Orders KBB 2005-08 and 2005-11 and R.S. 49:1015 et
       a. In both instances, whether the discrepancy is an             seq.
insufficient urine specimen or amount of breath, the Director            HISTORICAL NOTE: Promulgated by the Department of
of Human Resources shall promptly inform the secretary.                Revenue, Office of the Secretary, LR 25:1523 (August 1999),
                                                                       amended LR 34:668 (April 2008).
       b. The secretary shall then direct the employees to
have a medical evaluation, at the expense of the Department                    Chapter 2. Alcoholic Beverages
of Revenue, by a licensed physician who possesses expertise
in the medical issue surrounding the failure to provide a              §201.        Direct Shipments of Sparkling or Still Wines
sufficient specimen.                                                       A. Identification of Shipments
       c. This medical evaluation must be performed                         1. All shipments made by an authorized manufacturer
within five working days after the secretary is notified of the        or retailer of sparkling or still wines that are shipped directly
employee's inability to provide a sufficient specimen.                 to any consumer in Louisiana shall be identified as follows:
        d. The physician shall provide the secretary with a                   a. the      words   "Alcoholic      Beverage―Direct
report of his/her conclusions as to whether the employee's             Shipment" shall be marked and clearly visible on both the
inability to provide a sufficient urine specimen or amount of          front and back of the package in lettering measuring at least
breath is genuine.                                                     1/4 inch in height; and
        e. If the physician determines that the employee's                     b. the words "Unlawful to Sell or Deliver to Anyone
inability to provide a sufficient urine specimen or amount of          under 21 Years of Age" must be clearly visible on the front
breath is not genuine, the employees will be subject to the            of the package, in lettering measuring at least 1/4 inch in
consequences of a positive test.                                       height.
  J. Safety-Sensitive or Security-Sensitive Positions to be                 2. The manufacturer's or retailer's Louisiana
Randomly Drug Tested                                                   registration or permit number assigned by the Excise Taxes
    1. All candidates for the following positions are                  Division shall be clearly displayed on the front of the
required to pass a drug test before being placed in the                package.
position, whether through appointment or promotion and                      3. All shipments shall have affixed to the exterior
employees who occupy these positions are subject to random             packaging a notification to the person making the delivery
drug/alcohol testing.                                                  that a signature of the recipient is required prior to delivery.
                                                                       The notice should be at least 3" by 3" and contain words
                                                                       similar to the following.

Louisiana Administrative Code                 December 2011        4
                                                                   Title 61, Part I

                          ATTENTION                                            procuring of services in this state, or actually does business
     Courier                                                                   in this state through exercising or enjoying each and every
                       SIGNATURE REQUIRED                                      act, power, right, privilege, or immunity as an incident to or
     Deliver to RECIPIENT address only. No indirect delivery.                  by virtue of the powers and privileges acquired by the nature
     Disregard any Signature Release. Recipient MUST be at least               of such organizations.
     21 years old, and not show signs of intoxication.
                                                                                  B. With respect to foreign corporations, R.S. 12:306
                                                                               generally grants such organizations authority to transact
  B. Reporting of Shipments
                                                                               business in this state subject to and limited by any
     1. For each shipment made by an authorized                                restrictions recited in the certificate of authorization, and in
manufacturer or retailer of sparkling or still wines that is                   addition thereto provides that they shall enjoy the same, but
shipped directly to any consumer in the state of Louisiana,                    no greater, rights and privileges as a business or nonprofit
the authorized manufacturer or retailer shall maintain the                     corporation organized under the laws of the state of
following records until December 31 of the year following                      Louisiana to transact the business which such corporation is
the year in which the shipment was made. These records                         authorized to contract, and are subject to the same duties,
shall be available for inspection by the Department of                         restrictions, penalties, and liabilities (including the payment
Revenue upon request:                                                          of taxes) as are imposed on a business or nonprofit
                                                                               corporation organized under the laws of this state. In view of
        a.     an invoice detailing the transaction; and                       the grant of such rights, privileges, immunities, and the
       b. a certification, on a written form as specified by                   imposition of the same duties, restrictions, penalties, and
the secretary, by the person receiving the shipment that the                   liabilities on foreign corporations as are imposed on
recipient is 21 years of age or older.                                         domestic corporations, the exercise of any right, privilege, or
                                                                               the enjoyment of any immunity within this state by a foreign
    2. Each certification required by §201.B.1.b must be                       corporation which might be exercised or enjoyed by a
signed and dated at the time of delivery to any consumer in                    domestic business or nonprofit corporation organized under
Louisiana.                                                                     the laws of this state renders the foreign corporation liable
     3. The carrier making the actual delivery of packages                     for the same taxes, penalties, and interest, where applicable,
of sparkling or still wines shall forward copies of the bills of               which would be imposed on a domestic corporation.
lading to the Excise Tax Division of the Louisiana                                C. Thus, both domestic and foreign corporations which
Department of Revenue by the fifteenth day of the month                        enjoy or exercise within this state any of the powers,
following the month of delivery in the same manner as                          privileges, or immunities granted to business corporations
reports showing the handling of alcoholic beverages as                         organized under the provisions of R.S. 12:41 are subject to
required under R.S. 26:369.                                                    and liable for the payment of the franchise tax imposed by
  AUTHORITY NOTE: Promulgated in accordance with R.S.                          this Section. R.S. 12:41 recites those privileges to be as
26:341, 26:344, and 26:359.                                                    follows:
  HISTORICAL NOTE: Promulgated by the Department of
Revenue, Excise Taxes Division, LR 25:526 (March 1999).                             1. the power to perform any acts which are necessary
                                                                               or proper to accomplish its purposes as expressed or implied
    Chapter 3. Corporation Franchise                                           in the articles of incorporation, or which may be incidental
                  Tax                                                          thereto and which are not repugnant to law;

§301.        Imposition of Tax                                                     2. without limiting the grant of power contained in
                                                                               §301.C.1, every corporation shall have the authority to:
   A. Except as specifically exempted by R.S. 47:608, R.S.
47:601 imposes a corporation franchise tax, in addition to all                        a. have a corporate seal which may be altered at
other taxes levied by any other statute, on all corporations,                  pleasure, and to use the same by causing it or a facsimile
joint stock companies or associations, or other business                       thereof to be impressed or affixed or in any manner
organizations organized under the laws of the state of                         reproduced; but failure to affix a seal shall not affect the
Louisiana which have privileges, powers, rights, or                            validity of any instrument;
immunities not possessed by individuals or partnerships, all                          b. have perpetual existence, unless a limited period
of which are hereinafter designated as domestic                                of duration is stated in its articles of incorporation;
corporations, for the right granted by the laws of this state to
exist as such an organization and on both domestic and                                  c.   sue and be sued in its corporate name;
foreign corporations for the enjoyment under the protection                           d. in any legal manner to acquire, hold, use, and
of the laws of this state of the powers, rights, privileges, and               alienate or encumber property of any kind, including its own
immunities derived by reason of the corporate form of                          shares, subject to special provisions and limitations
existence and operation. Liability for the tax is created                      prescribed by law or the articles;
whenever any such organization qualifies to do business in
this state, exercises its charter or continues its charter within                     e. in any legal manner to acquire, hold, vote, and
this state, owns or uses any part of its capital, plant, or any                use, alienate and encumber, and to deal in and with, shares,
other property in this state, through the buying, selling, or                  memberships, or other interests in, or obligations of, other


                                                                          5           Louisiana Administrative Code            December 2011
                                                   REVENUE AND TAXATION

businesses, nonprofit or foreign corporations, associations,          and its borrowed capital, determined as provided in R.S.
partnerships, joint ventures, individuals, or governmental            47:603 on the amount of such capital stock, surplus, and
entities;                                                             undivided profits, and borrowed capital as is employed in
                                                                      the exercise of its rights, powers, and immunities within this
        f. make contracts and guarantees, including
                                                                      state determined in compliance with the provisions of R.S.
guarantees of the obligations of other businesses, nonprofit
                                                                      47:606 and R.S. 47:607.
or foreign corporations, associations, partnerships, joint
ventures, individuals, or governmental entities, incur                  F. The accrual, payment, and reporting of franchise
liabilities, borrow money, issue notes, bonds, and other              taxes imposed by this Section are set forth in R.S. 47:609.
obligations, and secure any of its obligations by                       G. In the case of any domestic or foreign corporation
hypothecation of any kind of property;                                subject to the tax herein imposed, the tax shall not be less
       g. lend money for its corporate purposes and invest            than the minimum tax provided in R.S. 47:601.
and reinvest its funds, and take and hold property or rights of         AUTHORITY NOTE: Promulgated in accordance with R.S.
any kind as security for loans or investments;                        47:601.
                                                                        HISTORICAL NOTE: Promulgated by the Department of
       h. conduct business and exercise its powers in this            Revenue and Taxation, Income and Corporation Franchise Taxes
state and elsewhere as may be permitted by law;                       Section, Office of Group III, LR 6:25 (January 1980), amended LR
                                                                      11:108 (February 1985), repromulgated by the Department of
       i. elect or appoint officers and agents, define their          Revenue, Policy Services Division, LR 30:448 (March 2004).
duties, and fix their compensation; pay pensions and
establish pension plans, pension trusts, profit-sharing plans,        §302.    Determination of Taxable Capital
and other incentive and benefit plans for any or all of its              A. Taxable Capital. Every corporation subject to the tax
directors, officers, and employees; and establish stock bonus         imposed by R.S. 47:601 must determine the total of its
plans, stock option plans, and plans for the offer and sale of        capital stock, as defined in R.S. 47:604, its surplus and
any or all of its unissued shares, or of shares purchased or to       undivided profits, as defined in R.S. 47:605, and its
be purchased, to the employees of the corporation, or to              borrowed capital, as defined in R.S. 47:603, which total
employees of subsidiary corporations, or to trustees on their         amount shall be used as the basis for determining the extent
behalf; such plans:                                                   to which its franchise and the rights, powers, and immunities
        i.    may include the establishment of a special fund         granted by Louisiana are exercised within this state.
or funds for the purchase of such shares, in which such               Determination of the taxable amount thereof shall be made
employees, during the period of their employment, or any              in accordance with the provisions of R.S. 47:606 and R.S.
other period of time, may be privileged to share on such              47:607, and the rules and regulations issued thereunder by
terms as are imposed with respect thereto; and                        the secretary of revenue and taxation.
       ii.    may provide for the payment of the price of               B. Holding Corporation Deduction. Any corporation
such shares in installments;                                          which owns at least 80 percent of the capital stock of a
                                                                      banking corporation organized under the laws of the United
       j. make and alter bylaws, not inconsistent with the
                                                                      States or of the state of Louisiana may deduct from its total
laws of this state or with the articles, for the administration
                                                                      taxable base, determined as provided in §302.A and before
and regulation of the affairs of the corporation;
                                                                      the allocation of taxable base to Louisiana as provided in
         k.   provide indemnity and insurance pursuant to R.S.        R.S. 47:606 and R.S. 47:607, the amount by which its
12:83;                                                                investment in and advances to such banking corporation
       l. make donations for the public welfare, or for               exceeds the excess of total assets of the holding corporation
charitable, scientific, educational, or civic purposes; and           over total taxable capital of the holding corporation,
                                                                      determined as provided in §302.A.
       m. in time of war or other national emergency, do
any lawful business in aid thereof, at the request or direction          C. Public Utility Holding Corporation Deductions. Any
of any apparently authorized governmental authority.                  corporation registered under the Public Utility Holding
   D. Thus, the mere ownership of property within this                Company Act of 1935 that owns at least 80 percent of the
state, or an interest in property within this state, including        voting power of all classes of the stock in another
but not limited to mineral interests and oil payments                 corporation (not including nonvoting stock which is limited
dependent upon production within Louisiana, whether                   and preferred as to dividends) may, after having determined
owned directly or by or through a partnership or joint                its Louisiana taxable capital as provided in R.S. 47:602(A),
venture or otherwise, renders the corporation subject to              R.S. 47:606, and R.S. 47:607, deduct therefrom the amount
franchise tax in Louisiana since a portion of its capital is          of investment in and advances to such corporation which
employed in this state.                                               was allocated to Louisiana under the provisions of R.S.
                                                                      47:606(B). The only reduction for investment in and
   E. The tax imposed by this Section shall be at the rate            advances to subsidiaries allowed by this Subsection is with
prescribed in R.S. 47:601 for each $1,000, or a major                 respect to those subsidiaries in which the registered public
fraction thereof, on the amount of its capital stock,                 utility holding company owns at least 80 percent of all
determined as provided in R.S. 47:604, its surplus and                classes of stock described herein; the reduction is not
undivided profits, determined as provided in R.S. 47:605,             allowable with respect to other subsidiaries in which the

Louisiana Administrative Code                 December 2011       6
                                                             Title 61, Part I

holding company owns less than 80 percent of the stock of                     5. For purposes of determining whether indebtedness
the subsidiary, notwithstanding the fact that such                       has a maturity date in excess of one year from the date
investments in and advances to the subsidiary may have                   incurred or whether the indebtedness was paid within one
been attributed to Louisiana under the provisions of R.S.                year from the date incurred, the following shall apply: With
47:606(B). In no case shall a reduction be allowed with                  respect to any indebtedness which was extended, renewed,
respect to revenues from the subsidiary. Any repeal of the               or refinanced, the date the indebtedness was originally
Public Utility Holding Company Act of 1935 shall not affect              incurred shall be the date the extended, renewed, or
the entitlement to deductions under this Subsection of                   refinanced indebtedness was incurred. All debt extended,
corporations registered under the provisions of the Public               renewed, or refinanced shall be included in borrowed capital
Utility Holding Company Act of 1935 prior to its repeal.                 if the extended maturity date is more than one year from, or
                                                                         if the debt has not been paid within one year from, that date.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:602.                                                                  In instances of debts which are extended, renewed, or
  HISTORICAL NOTE: Promulgated by the Department of                      refinanced by initiating indebtedness with a creditor
Revenue and Taxation, Income and Corporation Franchise Taxes             different from the original creditor, the indebtedness shall be
Section, Office of Group III, LR 6:25 (January 1980), amended LR         construed to be new indebtedness and the one-year
11:108 (February 1985), repromulgated by the Department of               controlling factor will be measured from the date that the
Revenue, Policy Services Division, LR 30:449 (March 2004).               new debt is incurred.
§303.    Borrowed Capital                                                     6. For purposes of determining whether indebtedness
  A. General                                                             has a maturity date in excess of one year from the date
                                                                         incurred or whether the indebtedness was paid within one
     1. As used in this Chapter, borrowed capital means all              year from the date incurred, with respect to the amount due
indebtedness of a corporation, subject to the provisions of              on a mortgage on real estate purchased subject to the
this Chapter, maturing more than one year from the date                  mortgage, the date the indebtedness was originally incurred
incurred, or which is not paid within one year from the date             shall be the date the property subject to the mortgage was
incurred regardless of maturity date.                                    acquired by the corporation.
     2. All indebtedness of a corporation is construed to be                  7. In the case of amounts owed by a corporation to a
capital employed by the corporation in the conduct of its                creditor who meets the definition of an affiliated corporation
business or pursuit of the purpose for which it was                      contained in R.S. 47:603, the age or maturity date of the
organized, and in the absence of a specific exclusion,                   indebtedness is immaterial. An affiliated corporation is
qualification, or limitation contained in the statute, must be           defined to be any corporation which through (a) stock
included in the total taxable base. No amount of                         ownership, (b) directorate control, or (c) any other means,
indebtedness of a corporation may be excluded from                       substantially influences policy of some other corporation or
borrowed capital except in those cases in which the                      is influenced through the same channels by some other
corporation can demonstrate conclusively that a specific                 corporation. It is not necessary that control exist between the
statutory provision permits exclusion of the indebtedness                corporations but only that policy be influenced substantially.
from borrowed capital.                                                   Any indebtedness between such corporations constitutes
     3. In the case of amounts owed by a corporation to a                borrowed capital to the extent it represents capital
creditor who does not meet the definition of an affiliated               substantially used to finance or carry on the business of the
corporation contained in R.S. 47:603, all indebtedness of a              debtor corporation, regardless of the age of the indebtedness.
corporation which has a maturity date of more than one year              For this purpose, all funds, materials, products, or services
from the date on which the debt was incurred and all                     furnished to a corporation for which indebtedness is
indebtedness which has not been paid within one year from                incurred, except as provided in this Section with respect to
the date the indebtedness was incurred, regardless of the                normal trading accounts and offsetting indebtedness, are
maturity or due date of the indebtedness, shall be included in           construed to be used by the corporation to finance or carry
borrowed capital. Determination of the one-year controlling              on the business of the corporation; in the absence of a
factor is with respect to the original date that the                     conclusive showing by the taxpayer to the contrary, all such
indebtedness was incurred and is not to be determined by                 indebtedness shall be included in borrowed capital.
any date the debt is renewed or refinanced. The entire                            a.     To illustrate this principle, assume:
amount of long-term debt not having a maturity date of less
than one year, which was not paid within the one-year                               i.     Corporation A―Parent of B, C, D, and E;
period, constitutes borrowed capital, even though it may                        ii.   Corporation B―Nonoperating, funds flow
constitute the current liability for payment on the long-term            conduit, owning no stock in C, D, or E;
debt.
                                                                                  iii.     Corporation C―Other Corporation;
    4. The fact that indebtedness which had a maturity
date of more than one year from the date it was incurred,                         iv.      Corporation D―Other Corporation;
was actually liquidated within one year does not remove the                        v.      Corporation E―Other Corporation;
indebtedness from the definition of borrowed capital.



                                                                    7           Louisiana Administrative Code                December 2011
                                                    REVENUE AND TAXATION

       vi.   any funds furnished by the parent A to either B,              2.   Voluntary Deposits
C, D, or E constitute either a contribution to capital or an                  a. The liability of a taxpayer to a depositor created
advance which must be included in the taxable base of the              as the result of advances, credits, or sums of money having
receiving corporation;                                                 been voluntarily left on deposit shall not constitute borrowed
       vii.   any funds supplied by D or E to C, whether or            capital if:
not channeled through A or B, would constitute borrowed                         i.   said moneys have been voluntarily left on
capital to C, and the indebtedness must be included in the             deposit to facilitate the transaction of business between the
taxable base. In the absence of a formal declaration of a              parties; and
dividend from D or E to A, the funds constitute an advance
to A by D or E and borrowed capital to A. In all such                         ii.  said moneys have been segregated by the
financing arrangements, the multiple transfers of funds are            taxpayer and are not otherwise used in the conduct of its
held to constitute capital substantially used to carry on each         business.
taxpayer's business.                                                           b. Neither the relationship of the depositor to the
    8. The amount that normal trading-account                          taxpayer nor the length of time the deposits remain for the
indebtedness bears to capitalization of a debtor determines to         intended purpose has an effect on the amount of such
what extent said indebtedness constitutes borrowed capital             liability which shall be excluded from borrowed capital.
substantially used to finance or carry on the business of the              3.   Deposits with Trustees
debtor. Due consideration should also be given to the                         a. The principal amount of cash or securities
debtor's ability to have incurred a similar amount of                  deposited with a trustee or other custodian or segregated into
indebtedness, equally payable as to terms and periods of               a separate or special account may be excluded from the
time.                                                                  indebtedness which would otherwise constitute borrowed
    9. In the case of equally demandable and payable                   capital if such segregation is fixed by a prior written
indebtedness of the same type between two corporations,                commitment or court order for the payment of principal or
wherein each is indebted to the other, only the excess of the          interest on funded indebtedness or other fixed obligations. In
amount due by any such corporation over the amount of its              the absence of a prior written commitment or court order
receivable from the other corporation shall be deemed to be            fixing segregation of the funds or securities, no reduction of
borrowed capital.                                                      borrowed capital shall be made with respect to such deposits
                                                                       or segregated amounts.
     10. With respect to any amount due from which debt
discount was paid upon inception of the debt, that portion of                  b. Whenever a liability for the payment of
the unamortized debt discount applicable to the indebtedness           dividends theretofore lawfully and formally authorized
which would otherwise constitute borrowed capital shall be             would constitute borrowed capital as defined in this Section,
eliminated in calculating the amount of the indebtedness to            an amount equivalent to the amount of cash or securities
be included in taxable base.                                           deposited with a trustee or other custodian or segregated into
  B. Exclusions from Borrowed Capital                                  a separate or special account for payment of the dividend
                                                                       liability may be excluded from borrowed capital.
     1. Federal, State and Local Taxes. R.S. 47:603
provides that an amount equivalent to certain indebtedness                  4. Receiverships, Bankruptcies and Reorganizations.
shall not be included in borrowed capital. With respect to             In the case of a corporation having indebtedness which could
accruals of federal, state, and local taxes, the only amounts          have been paid from cash and temporary investments on
which may be excluded are the tax accruals determined to be            hand which were not currently needed for working capital
due to the taxing authority or taxes due and not delinquent            and in which case the corporation has secured approval or
for more than 30 days. In the case of reserves for taxes, only         allowance by the court of the petition for receivership,
so much of the reserve as represents the additional liability          bankruptcy, or reorganization under the bankruptcy law,
due at the taxpayer's year-end for taxes incurred during the           after such allowance or approval by the court of the
accrual period may be excluded. Any amount of the reserve              taxpayer's petition, the taxpayer may then reduce the amount
balance in excess of the amount additionally due for the               which would otherwise constitute borrowed capital by the
accrual period shall be included in the taxable base, since the        amount of cash or temporary investment which it could have
excess does not constitute a reserve for a definitely fixed            paid on the indebtedness prior to such approval, to the extent
liability. This additional amount due is determined by                 that they are permitted to make such payments under the
subtracting the taxpayer's tax deposits during the year from           terms of the receivership, bankruptcy, or reorganization
the total liability for the period. All reserves for anticipated       proceedings.
future liabilities due to accounting and tax timing differences          AUTHORITY NOTE: Promulgated in accordance with R.S.
shall be included in the taxable base. Any taxes which are             47:603.
due and are delinquent more than 30 days must be included                HISTORICAL NOTE: Promulgated by the Department of
in borrowed capital. For purposes of determining whether               Revenue and Taxation, Income and Corporation Franchise Taxes
taxes are delinquent, extensions of time granted by the                Section, Office of Group III, LR 6:25 (January 1980), amended LR
taxing authority for the filing of the tax return or for               11:108 (February 1985), repromulgated by the Department of
payment of the tax shall be considered as establishing the             Revenue, Policy Services Division, LR 30:450 (March 2004).
date from which delinquency is measured.

Louisiana Administrative Code                 December 2011        8
                                                             Title 61, Part I

§304.    Capital Stock                                                   §305.      Surplus and Undivided Profits
   A. For the purpose of determining the amount of capital                  A. Determination of Value―Assets
stock upon which the tax imposed by R.S. 47:601 is based,
                                                                              1. For the purpose of determining the tax imposed by
such stock shall in every instance have such value as is
                                                                         R.S. 47:601, there are statutory limitations on both the
reflected on the books of the corporation, subject to
                                                                         maximum and minimum amounts which shall be included in
whatever increases to the recorded book values may be
                                                                         the taxable base with respect to surplus and undivided
found necessary by the Secretary of Revenue and taxation to
                                                                         profits. The minimum amount which shall be included in the
reflect the true value of the stock. In no case shall the value
                                                                         taxable base shall be no less than the amount reflected on the
upon which the tax is based be less than is shown on the
                                                                         books of the taxpayer. Irrespective of the reason for any
books of the corporation.
                                                                         book entry which increases the franchise tax base, such as,
  B. In any case in which capital stock of a corporation has             but not limited to, entries to record asset appreciation, entries
been issued in exchange for assets, the capital stock shall              to reflect equity accounting for investments in affiliates or
have a value equal to the fair market value of the assets                subsidiaries, and amounts credited to surplus to record
received in exchange for the stock, plus any intangibles                 accrual of anticipated future tax refunds created by
received in the exchange, except as provided in the                      accounting timing differences, the amount reflected on the
following Subsection.                                                    books must be included in the tax base.
   C. In any such case in which capital stock of a                            2. Entries to the books of any corporation to record
corporation is transferred to one or more persons in                     the decrease in value of any investment through the use of
exchange for assets, and the only consideration for the                  equity accounting will be allowed as a reduction in taxable
exchange was stock or securities of the corporation, and                 surplus and its related asset account for property factor
immediately after the exchange such person or persons                    purposes. This is only in those cases in which all
owned at least 80 percent of the total voting power of all               investments are recorded under the principles of equity
voting stock and at least 80 percent of the total number of              accounting, and such reductions in the value of any
shares of all of the stock of the corporation, the value of the          particular investment below cost thereof to the taxpayer will
stock exchanged for the assets so acquired shall be the same             not be allowed. The exception is in those instances in which
as the basis of the assets received in the hands of the                  the taxpayer can show that such reduction is in the nature of
transferor of the assets, plus any intangibles received in the           a bona fide valuation adjustment based on the fair value of
exchange. The only other exception to the rule that capital              the investment. In no case will a reduction below zero value
stock exchanged for assets shall have such value as equals               be recognized. Corresponding adjustments shall in all
the fair market value of the assets received and any                     instances be made to the value of assets for property factor
intangibles received is in the case of stock issued in                   purposes.
exchange for assets in a reorganization, which transaction
                                                                              3. In any instance in which an asset is required to be
was fully exempt from the tax imposed by the Louisiana
                                                                         included in the property factor under the provisions of R. S.
income tax law, in which case the value of the stock shall
                                                                         47:606 and the regulations issued thereunder, the acquisition
have a value equal to the basis of the assets received in the
                                                                         of which resulted in the establishment of a contra account,
hands of the transferor of the assets, plus any intangibles
                                                                         such as, but not limited to, an account to record unrealized
received.
                                                                         gain from an installment sale, all such contra accounts shall
  D. In any case in which an exchange of stock of a                      be included in the taxable base, except to the extent such
corporation for assets resulted in a transaction taxable in part         contra accounts constitute a reserve permitted to be excluded
or in full under the Louisiana income tax law, the value of              under the provisions of R.S. 47:605(A) and the regulations
the stock so exchanged shall be equal to the fair market                 issued under §305.A. See §306.A for required adjustments to
value of all of the assets received in the exchange, including           assets with respect to any contra account or reserve which is
the value of any intangibles received.                                   not included in the taxable base.
   E. Capital stock, valued as set forth heretofore, shall                    4. The minimum value under the statute is subject to
include all issued and outstanding stock, including treasury             examination and revision by the secretary of revenue and
stock, fractional shares, full shares, and any certificates or           taxation. The recorded book value of surplus and undivided
options convertible into shares.                                         profits may be increased, but not in excess of cost, as the
                                                                         result of such examination to the extent found necessary by
  AUTHORITY NOTE: Promulgated in accordance with R.S.                    the secretary to reflect the true value of surplus and
47:604.
  HISTORICAL NOTE: Promulgated by the Department of
                                                                         undivided profits. The secretary is prohibited from making
Revenue and Taxation, Income and Corporation Franchise Taxes             revisions which would reflect any value below the amount
Section, Office of Group III, LR 6:25 (January 1980), amended LR         reflected on the books of the taxpayer. A taxpayer may, in his
11:108 (February 1985), repromulgated by the Department of               own discretion, reflect values in excess of cost; that option is
Revenue, Policy Services Division, LR 30:451 (March 2004).               not extended to the secretary in any examination of recorded
                                                                         cost.




                                                                    9           Louisiana Administrative Code            December 2011
                                                    REVENUE AND TAXATION

     5. In determining cost to which the revisions                      the taxpayer is unable to record on its books the full amount
limitation applies, the fair market value of any asset received         of depreciation sustained, the taxpayer may apply to the
in an exchange of properties shall be deemed to constitute              collector of revenue for permission to add to its reserve for
the cost of the asset to the taxpayer under the generally               depreciation and deduct from its surplus the amount of
recognized concept that no prudent person will exchange an              depreciation sustained but not recorded, and if the collector
article of value for one of lesser value. In application of that        finds that the amount proposed to be so added represents a
concept, the secretary of revenue and taxation shall, except            reasonable allowance for actual depreciation, he shall grant
as provided in the following Paragraphs, construe cost of               such permission.
any asset to be fair market value of the asset received in
                                                                             1. Permission to add to depreciation reserves and
exchange therefor.
                                                                        reduce surplus must be requested in advance and shall be
     6. Exception to the rules stated above will be made                granted only in those instances in which a governmental
only in those instances in which the exchange resulted in a             agency requires that the books of the corporation reflect a
fully tax-free exchange under provisions of the Louisiana               depreciation method under which the total accumulated
income tax law, in which case cost shall be construed to be             depreciation reflected on the books is less than would be
the income tax basis of the properties received for purposes            reflected if the straight-line method of depreciation had been
of calculating depreciation and the determination of gain or            applied from the date of acquisition of the asset. The period
loss on any subsequent disposition of the assets. Limitation            over which depreciation shall be computed shall be the
of the valuation of the cost of any asset to the income tax             expected useful life of the asset.
basis will be considered only in the case of fully tax-free
exchanges and will not be considered if the transaction was                 2. The amount of adjustment shall be the amount of
taxable to any extent under the provisions of the Louisiana             accumulated depreciation which would be reflected on the
income tax law contained in R.S. 47:131, 132, 133, 134,                 books if the straight-line method had been applied from the
135, 136, and 138.                                                      date of acquisition of the asset, less the amount of
                                                                        accumulated depreciation actually reflected on the books.
  B. Determination of Value―Reserves
                                                                            3. Permission granted by the secretary shall be
     1. There must be included in the franchise taxable                 automatically revoked upon a material change in the facts
base determined in the manner heretofore described, all                 and circumstances presented by the taxpayer.
reserves other than those for:
                                                                             4. Permission granted by the secretary shall be for a
       a.   definitely fixed liabilities;                               period of six years, at which time the taxpayer must reapply
       b. reasonable depreciation (or amortization), but                for permission to continue making the adjustment.
only to the extent recorded on the books of the taxpayer,                 D. For purposes of this Chapter, reserves include all
except as noted in the following Paragraphs with respect to             accounts appearing on the books of a corporation that
taxpayers subject to regulations of governmental agencies               represent amounts payable or potentially payable to others.
controlling the books of such taxpayers;                                However, the term reserves shall not include accounts
       c.   bad debts; and                                              included in capital stock as used in R.S. 47:604 and shall not
                                                                        include accounts that represent indebtedness, regardless of
       d.   other established valuation reserves.
                                                                        maturity date, as indebtedness is used in R.S. 47:603.
     2. No deduction from surplus and undivided profits
shall be made with respect to any reserve for contingencies               E. For purposes of this Chapter, the term assets shall
of any nature, without regard to whether the reserve is                 mean all of a corporation's property and rights of every kind.
partially or fully funded. Reserves for future liability for            The definition of the term assets for corporation franchise
income taxes shall not be excluded from the tax base.                   tax purposes may differ from the definition of assets for
Deferred federal income tax accounts may be netted in                   general accounting purposes.
determining the amount of reserve to be included in the                   AUTHORITY NOTE: Promulgated in accordance with R.S.
taxable base. Reserves for fixed liabilities shall be included          47:605.
in the taxable base to the extent that they constitute                    HISTORICAL NOTE: Promulgated by the Department of
borrowed capital under the provisions of R.S. 47:603 and the            Revenue and Taxation, Income and Corporation Franchise Taxes
regulations issued thereunder.                                          Section, Office of Group III, LR 6:25 (January 1980), amended LR
                                                                        11:108 (February 1985), LR 28:1995 (September 2002), LR
     3. In addition to the four classifications of reserves             29:1520 (August 2003), repromulgated by the Department of
which may be excluded from the taxable base, any amount                 Revenue, Policy Services Division, LR 30:452 (March 2004).
of surplus which has been set aside and segregated pursuant             §306.    Allocation of Taxable Capital
to a court order so as not to be available for distribution to
stockholders or for investment in properties which would                  A. General Allocation Formula. Every corporation
produce income which would be distributable to                          subject to the corporation franchise tax must determine the
stockholders may also be excluded from the taxable base.                extent to which its entire franchise taxable base is employed
                                                                        in the exercise of its franchise within this state. For all
  C. Adjustment by regulated companies for depreciation                 taxpayers other than those in the business of manufacturing,
sustained but not recorded. When, because of regulations of             the extent of such use of total taxable base in the state is
a governmental agency controlling the books of a taxpayer,              determined by multiplying the total taxable capital by the

Louisiana Administrative Code                 December 2011        10
                                                              Title 61, Part I

ratio obtained through the arithmetical average of the ratio of                     i.   Transportation by Taxpayer or by Public
net sales made to customers in the regular course of business             Carrier. Where the goods are delivered by the taxpayer in his
and other revenues attributable to Louisiana to total net sales           own equipment, it is presumed that such transportation
made to customers in the regular course of business and total             relates to the sale. Where the goods are delivered by a
other revenues, and the ratio that the value of all of the                common or contract carrier, whether shipped F.O.B.
taxpayer's property and assets situated or used by the                    shipping point and whether the carrier be a pipeline, trucking
taxpayer in Louisiana bears to all of the taxpayer's property             line, railroad, airline, or some other type of carrier, the place
and assets wherever situated or used. For taxpayers in the                where the goods are ultimately received by the purchaser
business of manufacturing, the extent of such use of total                after the transportation incident to the sale has ended is
taxable base in the state is determined by multiplying the                deemed to be the place where the goods are received by the
total taxable capital by the ratio of net sales made to                   purchaser.
customers in the regular course of business and other                              ii.   Transportation by Purchaser
revenues attributable to Louisiana to total net sales made to
                                                                                       (a). Where the transportation involved is
customers in the regular course of business and total other
                                                                          transportation by the purchaser, it is recognized that it is
revenues.
                                                                          more difficult to determine whether or not the transportation
     1. Net Sales and Other Revenue. Net sales to be                      is related to the sale by the taxpayer. To be related to the
combined with other revenue in determining both the                       initial sale, the transportation should be commenced
numerator and denominator of the revenue ratio for purposes               immediately. However, before a lapse of time is conclusive,
of calculating the portion of the taxpayer's total taxable                consideration must be given to the nature and character of
capital to be allocated to Louisiana are only those sales made            the goods purchased, the availability of transportation, and
to customers in the regular course of the taxpayer's business.            other pertinent economic and natural circumstances
In transactions in which raw materials, products, or                      occurring at the time.
merchandise are transferred to another party at one location                           (b). The intent of the parties to the sale must also
in exchange for raw materials, products, or merchandise at                be considered. The intent and purpose of the purchaser may
another location in agreements requiring the subsequent                   be determined directly, or by an evaluation of the nature and
replacement with similar property on a routine, continuing,               scope of his operation, customs of the trade, customary
or repeated basis, all such transactions shall be carefully               activities of the purchaser, and all pertinent actions and
analyzed to determine whether they constitute sales made to               words of the purchaser at the time of the sale.
customers that should be included in the revenue ratio or
                                                                                       (c). In order for the transportation by the
whether they constitute exchanges that are not sales and
                                                                          purchaser to be related to the initial sale by the taxpayer to
should be excluded from the revenue ratio. Sales of scrap
                                                                          the purchaser, such transportation must be generally the
materials and by-products are construed to meet the
                                                                          same in nature and scope as that performed by the vendor or
requirements for inclusion in the revenue ratio. Sales made
                                                                          by a carrier. There is no difference between a case where a
other than to customers, such as, but not limited to, sales of
                                                                          taxpayer in Houston ships F.O.B. Houston to a purchaser in
stocks, bonds, futures, options, derivatives, and other
                                                                          Baton Rouge, by common carrier, and a case where all facts
evidence of investment on the open market, regardless of the
                                                                          are the same except that the purchaser goes to Houston in his
frequency or volume of those sales, shall not be included in
                                                                          own vehicle and returns with the goods to Baton Rouge.
the revenue ratio. Similarly, revenues and/or gains on the
sale of property other than stock in trade shall not be                           iii.  Transportation of Natural Resources by a
included in the revenue ratio since they generally do not                 Public Carrier Pipeline. Generally, transportation by public
meet the specific requirements that only sales made to                    carrier pipelines is accorded the same treatment as
customers in the regular course of business of the taxpayer               transportation by any other type of public carrier. However,
should be included. Whenever a transaction is not a sale to               because of the nature and character of the property, the type
customers in the regular course of business, the amount does              of carrier, and the customs of the trade, the natural resources
not constitute other revenue so as to qualify for inclusion in            in the pipeline may become intermixed with other natural
either the numerator or the denominator of the allocation                 resources in the pipeline and lose their particular identity.
ratio.                                                                    Where delivery is made to a purchaser in more than one
                                                                          state, or to different purchasers in different states, peculiar
        a. Sales attributable to Louisiana are those sales                problems of attribution arise. In all cases possible,
where the goods, merchandise, or property are received in                 attribution will be made in accordance with the rules
Louisiana by the purchaser. Where goods are delivered into                applicable to all public carrier transportation, that is, where it
Louisiana by public carrier, or by other means of                         can be shown that a taxpayer in one state sold a quantity of
transportation, including transportation by the purchaser, the            crude oil to a purchaser in another state, and the oil was
place at which the goods are ultimately received after all                transported to the purchaser by public carrier pipeline, the
transportation has been completed shall be considered as the              sale will be attributed to the state where the crude oil is
place at which the goods are received by the purchaser. The               received by the purchaser, even though the crude oil
transportation in question is the initial transportation relating         delivered might not be the identical oil sold because of
to the sale by the taxpayer.                                              commingling in the pipeline. Custom of the trade indicates
                                                                          the purchaser buys a quantity of oil of certain quality, but not
                                                                          any specific oil.

                                                                    11           Louisiana Administrative Code             December 2011
                                                   REVENUE AND TAXATION

       iv.    Storage of Property after Purchase                               iii.  Example: ABC Corporation is in the business
                                                                       of transporting natural gas as a common carrier. During the
            (a). In determining the place of receipt by the
                                                                       year 2005, ABC entered into five transactions. In the first
purchaser after the initial transportation has ended, peculiar
                                                                       transaction 1 million MMCF was transported from Texas,
problems may be created by the storage of the property
                                                                       through Louisiana, to Mississippi. The total distance
purchased immediately upon purchase and at a place other
                                                                       transported was 500 miles, of which 200 miles was in
than the place of intended use. The primary problem created
                                                                       Louisiana. The charge for the transportation was
by such storage is in determining whether or not the storage
                                                                       $250,000.00. In the second transaction 1 million MMCF was
is of a temporary nature.
                                                                       transported from one point in Louisiana to another point in
            (b). In cases where the storage is permanent or            Louisiana, a distance of 150 miles, for a charge of
semipermanent, delivery to the place of storage concludes              $150,000.00. In the third transaction 1 million MMCF was
the initial transportation, and the sale is attributed to the          transported from one point in Texas to another point in
place of storage. However, where the storage is of a                   Texas, a distance of 500 miles, for a charge of $250,000.00.
temporary nature, such as that necessitated by lack of                 In the fourth transaction 1 million MMCF was transported
transportation or by change from one means of                          from a point in Louisiana to a point in another state for a
transportation to another, or by natural conditions, the place         charge of $500,000.00. The total distance transported was
of such storage is of no significance.                                 1,000 miles, of which 100 miles were in Louisiana. In the
                                                                       fifth transaction 1 million MMCF was transported from a
       b. Revenue from Air Transportation. All revenues
                                                                       point in Louisiana to a point in another state for a charge of
derived from the transportation of cargo or passengers by air
                                                                       $250,000.00. The distance transported was 500 miles, of
shall be attributed within and without this state based on the
                                                                       which 100 was in Louisiana. The portion of the gross
point at which the cargo shipment or passenger journey                 apportionable income attributed to Louisiana would be
originates.                                                            computed as follows:
       c. Revenue from Transportation Other Than Air
Travel. Revenue attributable to Louisiana from                                                                                  Louisiana Amount
                                                                       First Transaction―200/500 x $250,000 =                           $100,000
transportation other than air includes all such revenue                Second Transaction―entirely from Louisiana =                       150,000
derived entirely from sources within Louisiana plus a                  Third Transaction―neither entirely nor partially in Louisiana           -0-
portion of revenue from transportation performed partly                Fourth Transaction―100/1,000 x $500,000 =                           50,000
within and partly without Louisiana, based upon the ratio of           Fifth Transaction―100/500 x $250,000 =                              50,000
                                                                       Louisiana Income from Transportation of Natural Gas              $350,000
the number of units of transportation service performed in
Louisiana to the total of such units. Revenue from
transportation exclusively without Louisiana shall not be                     d. Revenue from Services Other Than from
included in the revenue attributed to Louisiana. Revenue               Transportation
attributable to Louisiana shall be computed separately for                      i.   For purposes of R.S. 47:606(A), in addition to
each of the four classes enumerated below.                             any other revenue attributed to Louisiana, the following
                                                                       revenue from providing telephone, telecommunications, and
        i.    A unit of transportation shall consist of the            similar services shall be attributed to Louisiana:
following:
                                                                                  (a). revenue derived from charges for providing
           (a). in the case of the transportation of                   telephone "access" from a location in this state. Access
passengers, the transportation of one passenger a distance of          means that a call can be made or received from a point
1 mile;                                                                within this state. An example of this type of receipt is a
            (b). in the case of the transportation of liquid           monthly subscriber fee billed with reference to a service
commodities, including petroleum or related products, the              address located in the state and without regard to actual
transportation of one barrel of the commodities a distance of          usage;
1 mile;                                                                            (b). revenue derived from charges for unlimited
            (c). in the case of the transportation of property         calling privileges, if the charges are billed by reference to a
other than liquids, the transportation of 1 ton of the property        service address located in this state;
a distance of 1 mile;                                                             (c). revenue from intrastate telephone calls or
            (d). in the case of the transportation of natural          other    telecommunications,     except      for   mobile
gas, the transportation of 1 MCF or 1 MBTU a distance of               telecommunication services, beginning and ending in
1 mile.                                                                Louisiana;

        ii.   In any case where another method would more                           (d). revenue from interstate or international
clearly reflect the gross apportionable income attributable to         telephone calls or other telecommunications, except for
Louisiana, or where the above information is not readily               mobile telecommunication services, either beginning or
available from the taxpayer's records, the secretary, in his           ending in Louisiana if the service address charged for the
discretion, may permit or require the use of any method                call or telecommunication is located in Louisiana, regardless
deemed reasonable by him.                                              of where the charges are billed or paid;


Louisiana Administrative Code                 December 2011       12
                                                           Title 61, Part I

           (e). revenue from mobile telecommunications                         ii.   Revenue derived from services, other than
service:                                                               from transportation, or telephone, telecommunications, and
              (i). revenue from mobile telecommunications              similar services, shall be attributed to the state in which the
services shall be attributed to the place of primary use,              services are rendered. Services are rendered where they are
which is the residential or primary business street address of         received by the customer.
the customer;                                                                  iii.   In any case in which it can be shown that
            (ii). if a customer receives multiple services,            charges for services constitute a pure recovery of the cost of
such as multiple telephone numbers, the place of primary               performing the services and do not include a reasonable rate
use of each separate service shall determine where the                 of profit, amounts received in reimbursement of such costs
revenue from that service is attributed;                               shall not be construed to be revenues received and shall be
                                                                       omitted from both the numerator and denominator of the
           (iii). revenue from mobile telecommunications
                                                                       attribution ratio.
services shall be attributed to Louisiana if the place of
primary use of the service is Louisiana.                                     e. Rents and Royalties           from   Immovable     or
          (f). Definitions. For the purpose of this                    Corporeal Movable Property
Subparagraph, the following terms have the following                            i.    Rents and royalties from immovable or
meanings unless the context clearly indicates otherwise.               corporeal movable property shall be attributed to the state
                (i).   Call—a   specific   telecommunications          where the property is located at the time the revenue is
transmission.                                                          derived, which is construed to be the place at which the
                                                                       property is used resulting in the rental payment. Rents,
             (ii). Customer—any person or entity that                  royalties, and other income from mineral leases, royalty
contracts with a home service provider or the end user of the          interests, oil payments, and other mineral interests shall be
mobile telecommunications service if the end user is not the           allocated to the state or states in which the property subject
person or entity that contracts with the home service                  to such interest is located.
provider for mobile telecommunications service.
                                                                               ii.    In the case of movable property which is used
            (iii). Home Service Provider—the facilities-               in more than one state or when the lessor has no knowledge
based carrier or reseller with which the customer contracts            of where the property is located at all times, application of
for the provision of mobile telecommunications services.               the general rule for attributing the revenue from rental of the
            (iv). Place of Primary Use of Mobile                       property may be sufficiently difficult so as to require use of
Telecommunications        Service—the      street   address            a formula or formulas to determine the place of use for
representative of where the customer's use of mobile                   which the rents were paid. The specific formula to be used
telecommunications service primarily occurs. This address              must be determined by reference to the basis on which rents
must be within the licensed service area of the home service           are charged, the basis of which is usually set forth in the
provider and must be either the residential or the primary             rental agreement. In those cases in which time of possession
business street address of the customer. The home service              in the hands of the lessee is the only consideration in
provider shall be responsible for obtaining and maintaining            calculating rental charges, time used by the lessee in each
the customer's place of primary use as prescribed by R.S.              state will be used as the basis for attributing the revenue to
47:301(14)(i)(ii)(bb)(XI).                                             each state. Where miles traveled is the basis for the rental
                                                                       charge, revenue shall be attributed on that basis; where ton
            (v). Service Address—the address where the                 miles or traffic density in combination with miles traveled is
telephone equipment is located and to which the telephone              the basis for the rental charges, revenue will be attributed to
number is assigned.                                                    each state on that basis. In the case of drilling equipment
                                                                       where rentals are based on the number of feet drilled,
            (vi). Telecommunications—the        electronic
transmission, conveyance or routing of voice, data, audio,             income will be attributed to each state based on the ratio of
                                                                       the number of feet drilled within that state to the total
video, or any other information or signals to a point, or
                                                                       number of feet drilled in all states by the rented equipment
between or among points, by or through the use of any
medium such as wires, cables, satellite, microwave,                    during the taxable period covered by the rental agreement.
electromagnetic wires, light waves or any combination of                        f.   Interest on Customers' Notes and Accounts
those or similar media now in existence or that might be                        i.   Interest on customers' notes and accounts can
devised, by telecommunications does not include the                    generally be associated directly with the specific credit
information content of any such transmission.                          instrument or account upon which the interest is paid and
            (vii). Telecommunication Service—providing                 shall be attributed to the state at which the goods were
telecommunications including service provided by                       received by the purchaser or services rendered. Interest is
telecommunication service resellers, for a charge and                  construed to include all charges made for the extension of
includes telephone service, telegraph service, paging service,         credit, such as finance charges and carrying charges.
personal communication services and mobile or cellular                         ii.   When the records of the taxpayer are not
telephone service, but does not include electronic                     sufficiently detailed so as to enable direct attribution of the
information service or Internet access service.                        revenue, interest, as defined herein, shall be attributed to

                                                                 13           Louisiana Administrative Code           December 2011
                                                    REVENUE AND TAXATION

each state on the basis of a formula or formulas which give                    i. Revenue from a Parent or Subsidiary
due consideration to credit sales in the various states,                Corporation. Revenue from a parent or subsidiary
outstanding customer accounts and notes receivable, and                 corporation shall be allocated as provided in R.S. 47:606(B)
variances in the rates of interest charged or permitted to be           and the regulations issued thereunder.
charged in each of the states where the taxpayer makes credit
                                                                               j.   All Other Revenues
sales.
                                                                                i.   All revenues which are not specifically
       g.   Other Interest and Dividends
                                                                        described in §306.A.l.a-i shall be attributed within and
        i.   Interest, other than on customers' notes and               without Louisiana on the basis of such ratio or ratios as may
accounts, and dividends shall be attributed to the state in             be reasonably applicable to the type of revenue and business
which the securities producing such revenue have their situs,           involved.
which shall be at the business situs of such securities if they
                                                                                ii.    In the case of revenue from construction,
have been so used in connection with the taxpayer's business
                                                                        repairs, and similar services, generally, all of the work will
as to acquire a business situs, or, in the absence of such a
                                                                        be performed at a specific geographical location and the total
business situs, shall be at the commercial domicile of the
                                                                        revenue, including all billings by the taxpayer without regard
taxpayer.
                                                                        to the method of reporting gain for purpose of the income
        ii.   Used in connection with the taxpayer's                    tax statutes, shall be attributed to the place where the work is
business is construed to mean use of a continuing nature in             performed. In the case of contracts wherein a material part or
the regular course of business and does not include the mere            parts of the work may have been performed in another state,
holding of the instrument at a location or the use of the               such as the design, engineering, manufacture, fabrication, or
property as security for credit. Business situs must be                 preassembly of component parts, total revenue from the
established on the basis of facts, indicating precisely the use         specific elements will be attributed to the place at which that
to which the securities have been put and the manner in                 segment of the work was performed on the basis of
which the taxpayer conducts its business.                               segregated charges contained in the performance contract. In
                                                                        the absence of segregated charges in the contract, revenues
       iii.   Commercial Domicile is in that state where
                                                                        shall be allocated on the basis of a formula or formulas
management decisions are implemented which is presumed
                                                                        which give due consideration to such factors as direct cost,
to be the state where the taxpayer conducts its principal
                                                                        time devoted to the separate elements, and relative
business and thereby benefits from public facilities and
                                                                        profitability of the specific function. Such ratios may be
protection provided by that state. The location of board of
                                                                        based on estimates of costs compiled during calculation of
directors' meetings is not presumed to create commercial
                                                                        bid amounts for purposes of securing the contract in the
domicile at the location.
                                                                        absence of sufficient contract segregation of the charges
       iv.   Interest and dividends from a parent or                    between functions or sufficient records necessary to
subsidiary corporation shall be attributed as provided in R.S.          determine direct cost.
47:606(B) and the regulations issued thereunder.
                                                                               iii.(a). Revenues from partnerships shall be attributed
       h. Royalties or Similar Revenue from the Use of                  within and without Louisiana based on the proportion of the
Patents, Trademarks, Secret Processes, and Other Similar                partnership's capital employed in Louisiana. The proportion
Intangible Rights                                                       of the partnership's capital employed in Louisiana is the
                                                                        allocation ratio, also known as the franchise tax
         i.  Royalties or similar revenue received for the              apportionment ratio, that would be computed for the
use of patents, trademarks, secret processes, and other                 partnership if the partnership were a corporation subject to
similar intangible rights shall be attributed to the state or
                                                                        franchise tax.
states in which such rights are used by the licensee from
whom the income is received.                                                        (b). Revenues from a partnership are the partner's
                                                                        distributive share of partnership net income when the
         ii.  In those cases where the rights are used by the           partner's distributive share of partnership net income is a
licensee in more than one state, royalties and similar revenue          positive amount. Losses from a partnership are not revenues
will be attributed to the states on the basis of a ratio which
                                                                        from a partnership.
gives due consideration to the proportion of use of the right
by the licensee within each of the states. When the royalty is                      (c). Revenue from a partnership should be
based on a measurable unit of production, sales, or other               revenue from the partnership as reflected on the taxpayer's
measurable unit, the attribution ratio shall be based on such           books. However, if there is no difference in the proportions
units within each state to the total of such units for which the        of incomes, expenses, gains, losses, credits and other items
royalties were received. When the royalty or similar revenue            accruing to the taxpayer from the partnership for book
is not based on measurable units, the attribution ratio will be         purposes and tax purposes the taxpayer may use tax basis
based on the relative amounts of income produced by the                 revenue from a partnership. Once a taxpayer uses either
licensee in each state or on such other ratio as will clearly           book basis revenue or tax basis revenue, that basis must be
reflect the proportion of use of the rights by the licensee in          used for all future tax periods.
each state.


Louisiana Administrative Code                 December 2011        14
                                                               Title 61, Part I

       iv.    The term partnership includes a syndicate,                           f. Stocks and bonds other than temporary cash
group, pool, joint venture, limited liability company, or other            investments and investments in or advances to a parent or
unincorporated organization through or by means of which                   subsidiary corporation shall be allocated to the state in which
any business, financial operation, or venture is carried on.               they have their business situs if they have been so used as to
                                                                           have acquired a business situs. In the absence of a business
     2. Property and Assets. For the purpose of calculating
                                                                           situs for such assets, stocks and bonds other than temporary
the ratio of the value of property situated or used by a
                                                                           cash investments and advances to a parent or subsidiary
corporation in Louisiana to the value of all property
                                                                           corporation shall be allocated to the state in which the
wherever situated, both tangible and intangible property
                                                                           commercial domicile of the corporation is located.
must be considered. The minimum value to be included in
both the numerator and denominator is the value recorded on                       g. Immovable property and corporeal movable
the books of the taxpayer. Both the cost recorded on the                   property which is used entirely within a particular state shall
books of the corporation and the reserves applicable thereto               be allocated to the state in which the property is located.
are subject to examination and revision by the secretary                   Movable property which is not limited in use to any
when such revision is found to be necessary in order to                    particular state shall be allocated among the states in which
reflect properly the extent to which capital of the corporation            used on the basis of a ratio which gives due consideration to
is employed in the exercise of its charter; in no event,                   the extent of use in each of the states. For the purpose of
however, shall the revision by the secretary to any asset                  determining the amount to be included in the numerator of
value or applicable reserve result in a net valuation which                the property ratio with respect to corporeal movable property
exceeds actual cost of the asset to the taxpayer. Assets will              used both within and without Louisiana, the following rules
be allocated as follows.                                                   shall apply.
      a. Cash on hand shall be allocated to the state in                           i.   The value of diesel locomotives shall be
which the cash is physically located.                                      allocated to Louisiana on the basis of the ratio of diesel
       b. Cash in banks and temporary cash investments                     locomotive miles traveled in Louisiana to total diesel
shall be allocated to the state in which they have their                   locomotive miles.
business situs if they have been so used as to have acquired a                     ii.  The value of other locomotives shall be
business situs. In the absence of a business situs for such                allocated to Louisiana on the basis of the ratio of other
assets, cash in banks and temporary cash investments shall                 locomotive miles traveled in Louisiana to total other
be allocated to the state in which the commercial domicile of              locomotive miles.
the taxpayer is located.
                                                                                  iii.   The value of freight train cars shall be
        c. Trade accounts and trade notes receivable are
                                                                           allocated to Louisiana on the basis of the ratio of freight car
construed to mean only those accounts and notes receivable
                                                                           miles traveled in Louisiana to total freight car miles.
resulting from the sale of merchandise or the performance of
services for customers in the regular course of business of                        iv.   The value of railroad passenger cars shall be
the taxpayer. Such accounts and notes shall be allocated to                allocated to Louisiana on the basis of the ratio of passenger
the location at which the merchandise was delivered or at                  car miles traveled in Louisiana to total passenger car miles.
which the services were performed resulting in the
                                                                                   v.    The value of passenger buses shall be allocated
receivable. In the absence of sufficient recorded detail upon
                                                                           to Louisiana on the basis of the ratio of passenger bus miles
which to base the allocation of specific accounts and notes
receivable to the various states, such accounts and notes                  traveled in Louisiana to total passenger bus miles.
may, by agreement between the secretary and the                                   vi.    The value of diesel trucks shall be allocated to
corporation, be allocated to the separate states based upon                Louisiana on the basis of the ratio of diesel truck miles
the ratio of credit sales within any particular state to the total         traveled in Louisiana to total diesel truck miles.
of all credit sales.                                                              vii.   The value of other trucks shall be allocated to
       d. Investments in and advances to a parent or                       Louisiana on the basis of the ratio of other truck miles
subsidiary corporation shall be allocated as provided in R.S.              traveled in Louisiana to total other truck miles.
47:606(B) and the regulations issued thereunder.                                viii.    The value of trailers shall be allocated to
       e. Notes and accounts receivable other than                         Louisiana on the basis of the ratio of trailer miles traveled in
temporary cash investments, trade notes and accounts, and                  Louisiana to total trailer miles.
advances to a parent or subsidiary, shall be allocated to the                     ix.    The value of towboats shall be allocated to
state in which they have their business situs if they have                 Louisiana on the basis of the ratio of towboat miles traveled
been so used as to have acquired a business situs. In the                  in Louisiana to total towboat miles. In the determination of
absence of a business situs for such assets, notes and                     Louisiana towboat miles, one-half of the mileage of
accounts receivable other than temporary cash investments,                 navigable rivers or streams bordering on both Louisiana and
trade notes and accounts, and advances to a parent or                      another state shall be considered Louisiana miles.
subsidiary shall be allocated to the state in which the
commercial domicile of the taxpayer is located. See                               x.   The value of tugs shall be allocated to
§306.A.1.g relative to business situs and commercial                       Louisiana on the basis of the ratio of tug miles traveled in
domicile.                                                                  Louisiana to total tug miles. In the determination of


                                                                     15           Louisiana Administrative Code            December 2011
                                                    REVENUE AND TAXATION

Louisiana tug miles, one-half of the mileage of navigable               the franchise tax apportionment ratio, that would be
rivers or streams bordering on both Louisiana and another               computed for the partnership if the partnership were a
state shall be considered Louisiana miles.                              corporation subject to franchise tax.
        xi.    The value of barges shall be allocated to                  B. Allocation of Intercompany Items
Louisiana on the basis of the ratio of barge miles traveled in               1. Without regard to the legal or commercial domicile
Louisiana to total barge miles. In the determination of                 of a corporation subject to the corporation franchise tax, and
Louisiana barge miles, one-half of the mileage of navigable             without regard to the business situs of investments in or
rivers or streams bordering on both Louisiana and another               advances to a subsidiary or parent corporation by a
state shall be considered Louisiana miles.                              corporation subject to the corporation franchise tax , all such
     xii.   The value of work and miscellaneous                         investments in, advances to, and revenue from such parent or
equipment shall be allocated to Louisiana in the following              subsidiary shall be allocated to Louisiana on the basis of the
manner:                                                                 percentage of capital employed in Louisiana by the parent or
                                                                        subsidiary corporation for franchise tax purposes. The
             (a). in the case of a railroad, on the basis of the        corporation franchise tax ratio of the parent or subsidiary
ratio of track miles in Louisiana to total track miles;                 shall be the measure of the extent to which the investment
             (b). in the case of truck and bus transportation,          in, advances to, and revenues from the parent or subsidiary
on the basis of the ratio of route miles operated in Louisiana          are attributable to Louisiana for purposes of determining the
to total route miles; and                                               revenue and property ratios to be used in allocating the total
                                                                        taxable base of any corporation subject to the corporation
            (c). in the case of inland waterway                         franchise tax.
transportation, on the basis of the ratio of bank miles in
                                                                             2. A subsidiary corporation is any corporation the
Louisiana to total bank miles. In the determination of bank             majority of the capital stock of which is actually, wholly, or
mileage of navigable rivers or streams bordering on both                substantially owned by another corporation and whose
Louisiana and another state, one-half of such mileage shall
                                                                        management, business policies, and operations are,
be considered Louisiana miles.                                          howsoever, actually, wholly, or substantially controlled by
      xiii.   The value of other floating equipment shall be            another corporation. Such latter corporation shall be termed
allocated to Louisiana on the basis of the ratio of operating           the parent corporation.
equipment miles within Louisiana to total operating
                                                                             3. In general, the ownership, either directly or
equipment miles for the particular equipment to be allocated.           indirectly, of more than 50 percent of the voting stock of any
In the determination of Louisiana operating equipment                   corporation constitutes control of that corporation's
miles, one-half of the mileage of navigable rivers or streams
                                                                        management, business policies, and operations, whether
bordering on both Louisiana and another state shall be
                                                                        such control is documented by formal directives from the
considered Louisiana miles.
                                                                        owner of such stock or not.
      xiv.    The value of flight equipment shall be
                                                                             4. Other criteria which will be construed to constitute
allocated to Louisiana on the basis of the ratio of ton miles
                                                                        control of the management, business policies, and operations
flown within Louisiana to total ton miles. For the purpose of
                                                                        of a corporation are:
determining Louisiana ton miles, a passenger and his
luggage shall be assigned a weight factor of 1/10 of 1 ton.                    a. the filing of a consolidated income tax return in
                                                                        which operations of the corporation are included with
        xv.    The value of inventories of merchandise in               operations of the corporation owning more than 50 percent
transit shall be allocated to the state in which their delivery         of its stock for purposes of determining its federal income
destination is located in the absence of conclusive evidence
                                                                        tax liability, foreign tax credits, investment credits, other
to the contrary.
                                                                        credits against its tax, and the alternative minimum tax; or
      xvi.    All other corporeal movable property shall be
                                                                               b. the requirement or policy that the purchase of a
allocated to Louisiana on the basis of such ratio or ratios as
                                                                        majority of the merchandise, equipment, supplies, or
will reasonably reflect the extent of their use within this
                                                                        services required for operations be made from the
state. In any case where the information necessary to                   corporation owning more than 50 percent of its stock, its
determine the prescribed ratio is not readily available from            designee, or from another corporation in which the owning
the taxpayer's records, the secretary may require the
                                                                        corporation owns more than 50 percent of the stock; or
allocation of the value of the property on the basis of any
method deemed reasonable by the secretary.                                    c. the requirement or policy that a majority of sales
                                                                        of merchandise, products, or service be made to the
       h. All other assets shall be allocated within or
                                                                        corporation owning more than 50 percent of its stock, its
without Louisiana on such basis as may be reasonably
                                                                        designee, or to another corporation in which the owning
applicable to the particular asset and the type of business
                                                                        corporation owns more than 50 percent of the stock; or
involved. Investments in or advances to a partnership shall
be attributed within and without Louisiana based on the                        d. the participation in a retirement, profit-sharing, or
proportion of the partnership's capital employed in                     stock option plan administered by or participating in the
Louisiana. The proportion of the partnership's capital                  profits or purchase of stock of the corporation owning more
employed in Louisiana is the allocation ratio, also known as            than 50 percent of its stock; or

Louisiana Administrative Code                  December 2011       16
                                                             Title 61, Part I

       e. the filing of reports with the Securities and                  file a verified application for exemption with the Secretary
Exchange Commission or other regulatory bodies in which                  of Revenue and Taxation which shall include an affidavit
its operations, assets, liabilities, and other financial                 showing, in addition to such other information as the
information are reflected as a part of similar information of            secretary may deem necessary from any particular applicant,
the corporation owning more than 50 percent of its stock; or             the following:
        f. the presence on its board of directors of a                            a.   character of the organization;
majority of members who are directors, officers, or
                                                                                  b.   purpose for which organized;
employees of the corporation owning more than 50 percent
of its stock.                                                                     c.   its actual activities;
     5. In the case of a corporation that owns more than                          d.   ownership of stock in the corporation;
50 percent of a corporation, the burden of proving that
                                                                                  e.   the source of its income;
control of the management, business policies, and operations
of the latter does not exist shall rest with the taxpayer.                        f.   the disposition of its income;
     6. Accounts receivable which may be considered to be                       g. whether or not any of its income is credited to
advances resulting from normal trading between the                       surplus, and if so, the intended future use of the retained
companies in the regular course of business and the sales of             amounts;
merchandise, products, or services in such transactions shall
not be included in advances to or revenue from a parent or                      h. whether any of its income may inure to the
subsidiary under this provision, but shall be allocated and              benefit of any shareholder or individual;
attributed as provided in R.S. 47:606(A) and the regulations                      i.   a copy of the charter or articles of incorporation;
issued thereunder.
                                                                                  j.   bylaws of the organization;
   C. Minimum Allocation; Assessed Value of Real and
Personal Property. The minimum amount of taxable capital                        k. the latest statement of the assets, liabilities,
upon which the corporation franchise tax is calculated shall             receipts, and disbursements;
be the total assessed value of all real and personal property                    l. any other facts relating to its operations which
of a corporation in this state. Total assessed value is                  affect its right to exemption from the tax; and
construed to be the value, after any and all exemptions, upon
which the ad valorem tax is based. The assessed value to be                     m. a copy of the ruling or determination letter issued
used as the basis for the minimum tax calculation is the                 by the federal Internal Revenue Service.
value upon which the ad valorem tax was calculated for the                    3. The required application for exemption may be
calendar year preceding the year in which the corporation                filed by an organization before it has started operations or at
franchise tax is due.                                                    any time it can describe its operations in sufficient detail to
  AUTHORITY NOTE: Promulgated in accordance with R.S.                    permit a conclusion that it will be clearly exempt under the
47:606.                                                                  particular requirements of the Section for which the
  HISTORICAL NOTE: Promulgated by the Department of                      exemption is sought.
Revenue and Taxation, Income and Corporation Franchise Taxes
Section, Office of Group III, LR 6:25 (January 1980), amended LR             4. Once the secretary has issued a ruling or
11:108 (February 1985), repromulgated by the Department of               determination letter that an organization, except those
Revenue, Policy Services Division, LR 30:453 (March 2004),               described in §308.B.1.a.ii and iii, as limited by §308.B.1.c.i
amended LR 31:696 (March 2005), LR 32:415 (March 2006).                  and ii, meets the exemption requirements, there is no
§308.    Exemptions                                                      mandatory provision that it make a return or any further
                                                                         showing that it meets the specified requirements unless it
  A. General                                                             changes the character of its organization or operations. The
    1. Corporations organized for the purposes described                 secretary reserves the right to review any exemption granted,
in §308.B.1-15 of this Section are fully exempt from the                 and may require the filing of whatever information deemed
payment of Louisiana Corporation Franchise Tax. Only                     necessary to permit proper evaluation of the exempt status.
those corporations which meet the prescribed standards of                    5. No exemption will be granted to a corporation,
organization, ownership, control, sources of income, and                 other than those described in §308.B.1.a.ii and iii, as limited
disposition of funds are exempt from the tax, whether or not             by §308.B.1.c.i and ii, organized and operated for the
they may enjoy exemption from any other tax, federal, state,             purpose of carrying on a trade or business for profit, even
or local, or whether or not they may be specifically                     though its entire income may be contributed or distributed to
exempted from all taxes under the laws of the state in which             another organization or organizations which are themselves
they were organized, chartered, or domiciled.                            exempt from the tax.
    2. A corporation is not exempt from the corporation                      6. An application for exemption filed by a corporation
franchise tax merely because it is a nonprofit organization.             under either the Louisiana income tax law or the Louisiana
In each case, an organization other than those described in              corporation franchise tax law may be accepted by the
§308.B.1.a.ii and iii as limited by §308.B.1.c.i and ii, must            secretary as fulfilling the application requirements under


                                                                   17           Louisiana Administrative Code              December 2011
                                                   REVENUE AND TAXATION

both laws. Taxpayers are cautioned, however, that approval                      i.   any corporation engaged in the production,
of exemption under either law does not grant exemption                 harvesting, and preparation for market of raw agricultural
under the other law in the absence of a statement contained            products or horticultural products produced by it and that has
in the ruling to that effect.                                          at least 80 percent of its gross income from such pursuits is
                                                                       exempt from corporation franchise tax, but only if
     7. A corporation is either entirely exempt from the
                                                                       75 percent or more of the beneficial ownership in such
corporation franchise tax law or it is wholly taxable. There is
                                                                       corporation is held by or for the benefit of a single family.
no statutory provision under which partial exemption may be
                                                                       For purposes of this Paragraph, a single family shall consist
granted.
                                                                       of brothers, sisters, spouses, ancestors, and lineal
  B. Exempt Corporations                                               descendants, including those legally adopted;
    1.   Labor, Agricultural or Horticultural Organizations                    ii.   any corporation engaged in the production,
                                                                       harvesting, and preparation for market of raw agricultural or
      a. Labor, agricultural, or horticultural organizations
                                                                       horticultural products produced by such corporation is
which are exempt under this provision are those corporations
                                                                       exempt from corporation franchise tax, but only if:
which have:
                                                                                   (a). at least 80 percent of its income is from such
        i.   no net income inuring to the benefit of any               activity; and
stockholder or member and are educational or instructive in
character, and have as their objects the betterment of                            (b). total gross income of the corporation for the
conditions of those engaged in such pursuits, or                       previous year did not exceed $500,000.
improvements of the grade of their respective occupations;
                                                                           2. Mutual Savings Banks, National Banking
or
                                                                       Corporations and Banking Corporations Organized under the
       ii.    at least 75 percent of the beneficial ownership          Laws of Louisiana, and Building and Loan Associations
held by or for the benefit of members, or the spouses of
                                                                             a. Mutual savings banks, national banking
members of a family, and at least 80 percent of total gross
                                                                       corporations, and building and loan associations are exempt
income is from the production, harvesting, and preparation
                                                                       from the tax imposed by this Chapter regardless of where
for market of products produced by the corporation; or
                                                                       organized.
      iii.   at least 80 percent of total gross income of the
                                                                              b. Banking corporations organized under the laws
corporation derived from the production, harvesting, and
                                                                       of the state of Louisiana which are required by other laws of
preparation for market of products produced by the
                                                                       this state to pay a tax for their shareholders, or whose
corporation, but only if total gross income of such
                                                                       shareholders are required to pay a tax on their shares of
corporation did not exceed $500,000 for the previous year.
                                                                       stock, are exempt.
       b. For purposes of this Subsection, agricultural
                                                                              c. Banking corporations, other than those described
includes the art or science of cultivating land, harvesting
                                                                       in §308.B.2.a and b above, organized under the laws of a
crops or aquatic resources, excluding minerals, or raising
                                                                       state other than the state of Louisiana are not exempt from
livestock, poultry, fish, and crawfish. Thus, the following
                                                                       the tax.
types of organizations (but not limited thereto) which meet
the requirements of §308.B.1.a.i, will be deemed to be                      3. Fraternal Beneficiary Societies, Orders or
exempt from the tax:                                                   Associations Operating under the Lodge System. Fraternal
          i.   an organization engaged in the promotion of             beneficiary societies, orders, or associations are exempt from
artificial insemination of livestock;                                  tax only if operated under the lodge system or for the
                                                                       exclusive benefit of the members of a fraternity itself
        ii.    a nonprofit organization of growers and                 operating under the lodge system. Operating under the lodge
producers formed principally to negotiate with processors              system means carrying on its activities under a form of
for the price to be paid to members for their produce;                 organization that comprises local branches, chartered by a
        iii.  a nonprofit organization of persons engaged in           parent organization, and largely self-governing, called
raising fish (or crawfish) as a cash crop on farms that were           lodges, chapters, or the like. In order to be exempt, it is
formed to encourage better and more economical methods of              necessary that the organization have an established system
fish farming and to promote the interest of its members; or            for the payment of life, sick, accident, or other benefits to its
       iv.    parish fairs and like organizations formed to            members or their dependents.
encourage the development of better agricultural and                       4.   Cemetery Companies
horticultural products through a system of awards, and
whose income is used exclusively to meet the necessary                       a. Cemetery companies are exempt from the
expenses of upkeep and operations;                                     corporation franchise tax if:
       c. corporations engaged in growing agricultural or                       i.   they are owned and operated exclusively for
horticultural products for profit are not exempt from the tax,         the benefit of their lot owners who hold such lots for bona
except as provided in §308.B.1.a.ii and iii, subject to the            fide burial purposes and not for the purpose of resale, or they
following limitations:                                                 are not operated for profit;


Louisiana Administrative Code                 December 2011       18
                                                              Title 61, Part I

       ii.   they are not permitted by their charter to                   described in R.S. 47:608(5) and exempt from taxation under
engage in any business not necessarily incident to burial                 R.S. 47:608(5) are sufficient for purposes of the
purposes; and                                                             organizational test. Moreover, it is sufficient if the articles
                                                                          set forth the purpose of the organization to be the operation
       iii.   no part of their net earnings inures to the
                                                                          of a school for adult education and describe in detail the
benefit of any private shareholder or individual.
                                                                          manner of the operation of such school. In addition, if the
       b. For purposes of this Paragraph, a nonprofit                     articles state that the organization is formed for charitable
corporation engaged in the operation of a crematory, which                purposes, such articles ordinarily shall be sufficient for
otherwise meets the exemption qualifications set forth                    purposes of the organizational test (see §308.B.5.b.v) for
herein, will be deemed to be an exempt cemetery company.                  rules relating to construction of terms.
        c. Such companies may issue preferred stock                                    (c). An organization is not organized exclusively
entitling the holders to dividends at a fixed rate not                    for one or more exempt purposes if its articles expressly
exceeding 8 percent per annum on the value of the                         empower it to carry on, otherwise than as an insubstantial
consideration for which the stock was issued, but only if the             part of its activities, activities which are not in furtherance of
articles of incorporation require that the preferred stock shall          one or more exempt purposes, even though such
be retired at par as soon as sufficient funds available therefor          organization is, by the terms of such articles, created for a
are realized from sales, and that all funds not required for the          purpose that is no broader than the purposes specified in
payment of dividends or for retirement of the preferred stock             R.S. 47:608(5). Thus, an organization that is empowered by
shall be used for the care and improvement of the cemetery                its articles to engage in a manufacturing business, or to
property.                                                                 engage in the operation of a social club does not meet the
                                                                          organizational test regardless of the fact that its articles may
    5.        Community Chests, Funds or Foundations                      state that such organization is created for charitable purposes
         a.     Organizational and Operational Tests                      within the meaning of R.S. 47:608(5).
          i.  In order to be exempt as an organization                               (d). In no case shall an organization be
described in R.S. 47:608(5), an organization must be both                 considered to be organized exclusively for one or more
organized and operated exclusively for one or more of the                 exempt purposes if, by the terms of its articles, the purposes
purposes specified in such .Section. If an organization fails             for which such organization is created are broader than the
to meet either the organizational test or the operational test,           purposes specified in R.S. 47:608(5). The fact that the actual
it is not exempt.                                                         operations of such an organization have been exclusively in
                                                                          furtherance of one or more exempt purposes shall not be
         ii.  The term exempt purpose or purposes as used                 sufficient to permit the organization to meet the
in this Section means any purpose or purposes specified in                organizational test. Similarly, such an organization will not
R.S. 47:608(5), as defined and elaborated in Subparagraph d               meet the organizational test as a result of statements or other
of this Section (see §308.B.5.d).                                         evidence that the members thereof intend to operate only in
         b.     Organizational Test                                       furtherance of one or more exempt purposes.
          i.      In General                                                          (e). An organization must, in order to establish
                                                                          its exemption, submit a detailed statement of its proposed
            (a). An organization is organized exclusively for             activities with and as a part of its application for exemption.
one or more exempt purposes only if its articles of
organization (referred to in this Section as its articles) as                     ii.   Articles of Organization. For purposes of this
defined in §308.B.5.b.ii:                                                 Section, the term articles of organization or articles includes
                                                                          the trust instrument, the corporate charter, the articles of
             (i). limit the purposes of such organization to              association, or any other written instrument by which an
one or more exempt purposes; and                                          organization is created.
              (ii). do not expressly empower the                                 iii.     Authorization    of    Legislative    or   Political
organization to engage, otherwise than as an insubstantial                Activities
part of its activities, in activities which in themselves are not
in furtherance of one or more exempt purposes.                                      (a). An organization is not organized exclusively
                                                                          for one or more exempt purposes if its articles expressly
             (b). In meeting the organizational test, the                 empower it:
organization's purposes, as stated in its articles, may be as
broad as, or more specific than, the purposes stated in R.S.                           (i). to devote more than an insubstantial part
47:608(5). Therefore, an organization which, by the terms of              of its activities attempting to influence legislation by
its articles, is formed for literary and scientific purposes,             propaganda;
within the meaning of R.S. 47:608(5) shall, if it otherwise                            (ii). to directly or indirectly participate in, or
meets the requirements in this Paragraph, be considered to                intervene in (including the publishing or distributing of
have met the organizational test. Similarly, articles stating             statements), any political campaign on behalf of or in
that the organization is created solely to receive                        opposition to any candidate for public office; or
contributions and pay them over to organizations which are


                                                                    19           Louisiana Administrative Code                 December 2011
                                                    REVENUE AND TAXATION

             (iii). to have objectives and to engage in                        iii.    Action Organizations
activities which characterize it as an action organization as
                                                                                   (a). An organization is not operated exclusively
defined in §308.B.5.c.iii.
                                                                        for one or more exempt purposes if it is an action
            (b). The terms used in §308.B.5.b.iii.(a).(i)-(iii)         organization as defined in §308.B.5.c.iii.(b), (c), or (d).
shall have the meanings provided in §308.B.5.c.
                                                                                    (b). An organization is an action organization if
        iv.    Distribution of Assets on Dissolution. An
                                                                        a substantial part of its activities is attempting to influence
organization is not organized exclusively for one or more
                                                                        legislation by propaganda or otherwise. For this purpose, an
exempt purposes unless its assets are dedicated to an exempt
                                                                        organization will be regarded as attempting to influence
purpose. An organization's assets will be considered
                                                                        legislation if the organization:
dedicated to an exempt purpose, for example, if, upon
dissolution, such assets would, by reason of a provision in                          (i). contacts, or urges the public to contact,
the organization's articles or by operation of law, be                  members of a legislative body for the purpose of proposing,
distributed for one or more exempt purposes, or to the                  supporting, or opposing legislation; or
federal government, or to a state or local government, for a
                                                                                      (ii). advocates the adoption or rejection of
public purpose, or would be distributed by a court to another
organization to be used in such manner as the court decides             legislation. The term legislation, as used in this Clause,
will best accomplish the general purposes for which the                 includes action by the Congress, by any state legislature, by
                                                                        any local council or similar governing body, or by the public
dissolved organization was organized. However, an
                                                                        in a referendum, initiative, constitutional amendment, or
organization does not meet the organizational test if its
                                                                        similar procedure. An organization will not fail to meet the
articles of incorporation or the law of the state in which it
                                                                        operational test merely because it advocates, as an
was created provided that its assets would, upon dissolution,
                                                                        insubstantial part of its activities, the adoption or rejection of
be distributed to its members or shareholders.
                                                                        legislation.
         v.   Construction of Terms. The law of the state in
which an organization is created shall be controlling in                            (c). An organization is an action organization if
interpreting the terms of its articles. However, any                    it participates or intervenes, directly or indirectly, in any
organization which contends that such terms have, under                 political campaign on behalf of or in opposition to any
state law, a different meaning from their generally accepted            candidate for public office. The term candidate for public
meaning must establish such special meaning by clear and                office means an individual who offers himself, or is proposed
convincing reference to relevant court decisions, opinions of           by others, as a contestant for an elective public office,
the state attorney general, or other evidence of applicable             whether such office be national, state, or local. Activities
state law.                                                              which constitute participation or intervention in a political
                                                                        campaign on behalf of or in opposition to a candidate
        vi.   Applicability of the Organization Test. A                 include, but are not limited to, the publication or distribution
determination by the secretary that an organization as                  of written or printed statements or the making of oral
described in R.S. 47:608(5) and exempt under R.S.                       statements on behalf of or in opposition to such a candidate.
47:608(5) will not be granted the exemption unless such
organization meets the organizational test prescribed by this                        (d). An organization is an action organization if
Subparagraph. If an organization has been determined by the             it has the following two characteristics:
secretary to be exempt as an organization described in R.S.
                                                                                      (i). its main or primary objective or
47:608(5) and such determination has not been revoked, the
                                                                        objectives (as distinguished from its incidental or secondary
fact that such organization does not meet the organizational
                                                                        objectives) may be attained only by legislation or a defeat of
test prescribed by this Subparagraph shall not be basis for             proposed legislation; and
revoking such determination. Accordingly, an organization
which has been determined to be exempt, and which does                               (ii). it advocates, or campaigns for, the
not seek a new determination of exemption, is not required              attainment of such main or primary objective or objectives
to amend its articles of organization to conform to the rules           as distinguished from engaging in nonpartisan analysis,
of this Subparagraph.                                                   study, or research and making the results thereof available to
       c.   Operational Test                                            the public. In determining whether an organization has such
                                                                        characteristics, all the surrounding facts and circumstances,
         i.  Primary Activities. An organization will be                including the articles and all activities of the organization,
regarded as operated exclusively for one or more exempt                 are to be considered.
purposes only if it engages primarily in activities which
accomplish one or more of such exempt purposes specified                           (e). An action organization, described in
in R.S. 47:608(5). An organization will not be so regarded if           §308.B.5.c.iii.(b) or (d), though it cannot qualify under R.S.
more than an insubstantial part of its activities is not in             47:608(5), may nevertheless qualify as a social welfare
furtherance of an exempt purpose.                                       organization under R.S. 47:608(7) if it meets the
                                                                        requirements set out in R.S. 47:608(7).
        ii.   Distribution of Earnings. An organization is not
operated exclusively for one or more exempt purposes if its                    d.     Exempt Purposes
net earnings inure in whole or in part to the benefit of private
                                                                                 i.    In General
shareholders or individuals.

Louisiana Administrative Code                  December 2011       20
                                                             Title 61, Part I

           (a). An organization may be exempt as an                      be relieved will not necessarily prevent such organization
organization described in R.S. 47:608(5) if it is organized              from being exempt as an organization organized and
and operated exclusively for one or more of the following                operated exclusively for charitable purposes.
purposes:
                                                                                    (c). The fact that an organization, in carrying out
              (i).    religious;                                         its primary purpose, advocates social or civic changes or
             (ii).    charitable;                                        presents opinions on controversial issues with the intention
                                                                         of molding public opinion or creating public sentiment to an
             (iii).   scientific;
                                                                         acceptance of its views does not preclude such organization
             (iv).    literary;                                          from qualifying under R.S. 47:608(5) so long as it is not an
              (v).    educational; or                                    action organization of any one of the types described in
                                                                         §308.B.5.c.iii.
             (vi).    prevention of cruelty to children or
animals.                                                                          iii.   Educational Defined
             (b). An organization is not organized or operated                      (a). In General. The term educational, as used in
exclusively for one or more of the purposes specified in                 R.S. 47:608(5), relates to:
§308.B.5.d.i.(a) unless it serves a public rather than a private
interest. Thus, to meet the requirement of this Subclause, it                           (i). the instruction or training of the
is necessary for an organization to establish that it is not             individual for the purpose of improving or developing his
organized or operated for the benefit of private interest such           capabilities; or
as designated individuals, the creator or his family,                                  (ii). the instruction of the public on subjects
shareholders of the organization, or persons controlled,                 useful to the individual and beneficial to the community.
directly or indirectly, by such private interest.
                                                                                     (b). An organization may be educational even
           (c). Since each of the purposes specified in                  though it advocates a particular position or viewpoint, so
§308.B.5.d.i.(a) is an exempt purpose in itself, an                      long as it presents a sufficiently full and fair exposition of
organization may be exempt if it is organized and operated               the pertinent facts as to permit an individual or the public to
exclusively for any one or more of such purposes.                        form an independent opinion or conclusion. On the other
            (d). If, in fact, an organization is organized and           hand, an organization is not educational if its principal
operated exclusively for an exempt purpose or purposes,                  function is the mere presentation of unsupported opinion.
exemption will be granted to such an organization regardless                        (c). Examples of Educational Organizations. The
of the purpose or purposes specified in its application for              following are examples of organizations which, if they
exemption. For example, if an organization claims                        otherwise meet the requirements of this Subsection, are
exemption on the ground that it is educational, an exemption             educational.
will not be denied if, in fact, it is charitable.
                                                                                       (i). Example. An organization, such as a
       ii.     Charitable Defined                                        primary or secondary school, a college, or a professional or
            (a). The term charitable as used in R.S.                     trade school, which has a regularly scheduled curriculum, a
47:608(5) in its generally accepted legal sense is not to be             regular faculty, and a regularly enrolled body of students in
construed as limited by the separate enumeration in R.S.                 attendance at a place where the educational activities are
47:608(5) of other tax-exempt purposes which may fall                    regularly carried on.
within the broad outlines of charity as developed by judicial                         (ii). Example. An organization whose
decisions. Such term includes: relief of the poor and                    activities consist of presenting public discussion groups,
distressed or of the underprivileged; advancement of                     forums, panels, lectures, or other similar programs. Such
religion; advancement of education or science; erection or               programs may be on radio or television.
maintenance of public buildings, monuments, or work;
lessening of the burdens of government; and promotion of                             (iii). Example. An organization which presents
social welfare by organizations designed to accomplish any               a course of instruction by means of correspondence or
of the above purposes; or                                                through the use of television or radio.

              (i).    to lessen neighborhood tension;                              (iv). Example. Museums, zoos, planetariums,
                                                                         symphony orchestras, and other similar organizations.
             (ii).    to eliminate prejudice and discrimination;
                                                                                  iv.    Scientific Defined
             (iii).   to defend human and civil rights secured
by law; or                                                                          (a). Since an organization may meet the
                                                                         requirements of R.S. 47:608(5) only if it serves a public
             (iv). to combat community deterioration and                 rather than a private interest, a scientific organization must
juvenile delinquency.                                                    be organized and operated in the public interest
           (b). The fact that an organization which is                   [§308.B.5.d.i.(b)]. Therefore, the term scientific, as used in
organized and operated for the relief of indigent persons may            R.S. 47:608(5) includes the carrying on of scientific research
receive voluntary contributions from the persons intended to             in the public interest. Research when taken alone is a word


                                                                   21           Louisiana Administrative Code           December 2011
                                                    REVENUE AND TAXATION

with various meanings; it is not synonymous with scientific,                         (i). such organization will perform research
and the nature of particular research depends upon the                  only for persons who are (directly or indirectly) its creators
purpose which it serves. For research to be scientific within           and who are not described in R.S. 47:608(5); or
the meaning of R.S. 47:608(5), it must be carried on in
                                                                                      (ii). such organization retains (directly or
furtherance of a scientific purpose. The determination as to
                                                                        indirectly) the ownership or control of more than an
whether research is scientific does not depend on such
                                                                        insubstantial portion of the patents, copyrights, processes, or
research being classified as fundamental or basic, as
                                                                        formulas resulting from its research and does not make such
contrasted with applied or practical.
                                                                        patents, copyrights, processes, or formulas available to the
            (b). Scientific research does not include activities        public. For purposes of this Subclause, a patent, copyright,
of a type ordinarily carried on as an incident to commercial            process, or formula shall be considered as made available to
or industrial operations, as, for example, the ordinary testing         the public if such patent, copyright, process, or formula is
or inspection of materials or products, or the designing or             made available to the public on a nondiscriminatory basis. In
construction of equipment, buildings, etc.                              addition, although one person is granted the exclusive right
                                                                        to the use of a patent, copyright, process, or formula, it shall
            (c). Scientific research will be regarded as
                                                                        be considered as made available to the public if the granting
carried on in the public interest:
                                                                        of such exclusive right is the only practicable manner in
            (i). if the results of such research (including             which the patent, copyright, process, or formula can be used
any patents, copyrights, processes, or formulas resulting               to benefit the public. In such a case, however, the research
from such research) are made available to the public on a               from which the patent, copyright, process, or formula
nondiscriminatory basis;                                                resulted will be regarded as carried on in the public interest
                                                                        (within the meaning of §308.B.5.d.iv.(c).(iii) if it is carried
              (ii). if such research is performed for the               on for a person described in §308.B.5.d.iv.(c).(ii) or if it is
United States, or any of its agencies or instrumentalities, or          scientific research described in §308.B.5.d.iv.(c).(iii).
for a state or political Subdivision thereof; or
                                                                                   (e). The fact that any organization (including a
             (iii). if such research is directed toward
                                                                        college, university, or hospital) carries on research which is
benefiting the public. The following are examples of
                                                                        not in furtherance of an exempt purpose described in R.S.
scientific research which will be considered as directed                47:608(5) will not preclude such organization from meeting
toward benefiting the public, and, therefore, which will be             the requirements of R.S. 47:608(5) so long as the
regarded as carried on in the public interest:
                                                                        organization meets the organizational test and is not operated
                [a]. scientific research carried on for the             for the primary purpose of carrying on such research (see
purpose of aiding in the scientific education of college or             §308.B.5.e relating to organizations carrying on a trade or
university students;                                                    business).
                [b]. scientific research carried on for the                    e. Organizations Carrying on Trade or Business. In
purpose of obtaining scientific information, which is                   general, an organization may meet the requirements of R.S.
published in a treatise, thesis, trade publication, or in any           47:608(5) although it operates a trade or business as a
other form that is available to the interested public;                  substantial part of its activities, if the operation of such trade
                                                                        or business is in furtherance of the organization's exempt
               [c]. scientific research carried on for the              purpose or purposes and if the organization is not organized
purpose of discovering a cure for a disease; or                         or operated for the primary purpose of carrying on an
                [d]. scientific research carried on for the             unrelated trade or business. In determining the existence or
purpose of aiding a community or geographical area by                   nonexistence of such primary purpose, all the circumstances
attracting new industry to the community or area or by                  must be considered, including the size and extent of the trade
encouraging the development of, or retention of, an industry            or business and the size and extent of the activities which are
in the community or area. Scientific research described in              in furtherance of one or more exempt purposes. An
§308.B.5.d.iv.(c) will be regarded as carried on in the public          organization which is organized and operated for the primary
interest even though such research is performed pursuant to             purpose of carrying on an unrelated trade or business is not
a contract or agreement under which the sponsor or sponsors             exempt under R.S. 47:608(5), even though it has certain
of the research have the right to obtain ownership or control           religious purposes, its property is held in common, and its
of any patents, copyrights, processes, or formulas resulting            profits do not inure to the benefit of individual members of
from such research.                                                     the organization.
            (d). An organization will not be regarded as                     6. Business Leagues, Chambers of Commerce, Real
organized and operated for the purpose of carrying on                   Estate Boards, and Boards of Trade. A business league is an
scientific research in the public interest and, consequently,           association of persons having some common business
will not qualify under R.S. 47:608(5) as a scientific                   interest, the purpose of which is to promote such common
organization, if:                                                       interest and not to engage in regular business of a kind
                                                                        ordinarily carried on for profit. It is an organization of the
                                                                        same general class as a chamber of commerce or board of
                                                                        trade. Thus, its activities should be directed to the

Louisiana Administrative Code                  December 2011       22
                                                             Title 61, Part I

improvement of business conditions of one or more lines of                       iv.   no substantial part of the activities of the
business as distinguished from the performance of particular             association is carrying on propaganda or otherwise
services for individual persons. An organization whose                   attempting to influence legislation.
purpose is to engage in a regular business of a kind                          8. Social Clubs
ordinarily carried on for profit, even though the business is
                                                                                a. The exemption provided by R.S. 47:608(8)
conducted on a cooperative basis or produces only sufficient
                                                                         applies only to clubs which are organized and operated
income to be self sustaining, is not a business league. An
                                                                         exclusively for pleasure, recreation, and other nonprofitable
association engaged in furnishing information to prospective
                                                                         purposes, but does not apply to any club if any part of its net
investors to enable them to make sound investments is not a
                                                                         earnings inures to the benefit of any private shareholder. In
business league since its activities do not further any
                                                                         general, the exemption extends to social and recreational
common business interest, even though all of its income is
                                                                         clubs which are supported solely by membership fees, dues,
devoted to the purpose stated. A stock or commodity
                                                                         and assessments. However, a club otherwise entitled to
exchange is not a business league, a chamber of commerce,
                                                                         exemption will not be disqualified because it raises revenue
or a board of trade within the meaning of R.S. 47:608(6) and
                                                                         from members through the use of club facilities or in
is not exempt from the tax.
                                                                         connection with club activities.
   7. Civic       Leagues    and    Local    Associations    of                 b. A club which engages in business, such as
Employees                                                                making its social and recreational facilities available to the
       a. Civic leagues or organizations may be exempt,                  general public or by selling real estate or other products, is
provided they are not organized or operated for profit, and              not organized and operated exclusively for pleasure,
are operated exclusively for the promotion of social welfare.            recreation, and other nonprofitable purposes, and is not
An organization is operated exclusively for social welfare               exempt. Solicitation by advertisement or otherwise for
only if it is primarily engaged in promoting in some manner              public patronage to its facilities is prima facie evidence that
the common good and general welfare of people in the                     the club is engaging in business and is not being operated
community. An organization embraced within this provision                exclusively for pleasure, recreation, or social purposes.
is one which is operated primarily for the purpose of                    However, an incidental sale of property will not deprive a
bringing about civic betterment and social improvements. A               club of its exemption.
social welfare organization will qualify for exemption as a                  9. Local Benevolent Life Insurance Associations,
charitable organization if it falls within the definition of             Mutual Ditch or Irrigation Companies, Mutual Cooperative
charitable set forth in §308.B.5.d.ii and is not an action               or Telephone Companies, and Like Organizations
organization as set forth in §308.B.5.c.iii.
                                                                                 a. In order to be exempt under the provision of R.S.
        b. The promotion of social welfare does not include              47:608(9), an organization of the type specified must receive
direct or indirect participation or intervention in political            at least 85 percent of its income from amounts collected
campaigns on behalf of or in opposition to any candidate for             from members for the sole purpose of meeting losses and
public office, nor is an organization operated primarily for             expenses. If an organization issues policies for stipulated
the promotion of social welfare if its primary activity is               cash premiums, or if it requires advance deposits to cover
operating a social club for the benefit, pleasure, or recreation         the cost of insurance and maintains investments from which
of its members, or is carrying on a business with the general            more than 15 percent of its income is derived, it is not
public in a manner similar to organizations which are                    entitled to an exemption. Although it may make advance
operated for profit. See R.S. 47:608(6) and the regulations              assessments for the sole purpose of meeting future losses
issued thereunder, relating to business leagues and similar              and expenses, an organization may be entitled to the
organizations. A social welfare organization may qualify                 exemption provided that the balance of such assessments
under this Section even though it is an action organization              remaining on hand at the end of the year is retained to meet
described in §308.B if it otherwise qualifies under this                 losses and expenses or is returned to members.
Section.                                                                        b. The phrase of a purely local character applies
       c. Local associations of employees described in                   only to benevolent life insurance associations and
R.S. 47:608(7) are expressly entitled to exemption. As                   organizations exempt on the ground that they are
conditions to exemption, it is required that:                            organizations similar to a benevolent life insurance
         i.  membership of such an association be limited                association, and not to the other organizations specified in
to the employees of a designated person or persons in a                  R.S. 47:608(9). An organization of a purely local character is
                                                                         one whose business activities are confined to a particular
particular municipality;
                                                                         community, place, or district, irrespective of political
       ii.  the net earnings of the association be devoted               subdivisions. If the activities of an organization are limited
exclusively to charitable, educational, or recreational                  only by the borders of a state, it cannot be considered to be
purposes;                                                                purely local in character.
        iii.  its activities are confined to a particular                     10. Insurance Corporations. Insurance companies
community, place, or district. If the activities are limited             which pay or which are required to pay a premium tax under
only by the borders of a state, it cannot be considered to be            the provisions of Title 22 of the Louisiana Revised Statutes
local in character; and                                                  of 1950 are exempt from the corporation franchise tax.

                                                                   23           Louisiana Administrative Code           December 2011
                                                    REVENUE AND TAXATION

    11. Farmers' and Fruit Growers' Cooperatives                        directly or indirectly, in the profits of the association, upon
                                                                        dissolution or otherwise, beyond the fixed dividends.
       a. Farmers' cooperative marketing associations
engaged in the marketing of farm products for farmers, fruit                   c. The accumulation and maintenance of a reserve
growers, livestock growers, dairymen, etc., and turning back            required by state statute, or the accumulation and
to the producers the proceeds of the sales of their products,           maintenance of a reasonable reserve or surplus for any
less the necessary operating expenses, on the basis of either           necessary purpose, such as to provide for the erection of
the quantity or the value of the products furnished by them,            buildings and facilities required in business or for the
are exempt from the corporation franchise tax. Nonmember                purchase and installation of machinery and equipment or to
patrons must be treated the same as members insofar as the              retire indebtedness incurred for such purposes, will not
distribution of patronage dividends is concerned. Thus, if              destroy the exemption. An association will not be denied
products are marketed for nonmember producers, the                      exemption because it markets the products of nonmembers,
proceeds of the sales, less necessary operating expenses,               provided the value of the products marketed for
must be returned to the patron from the sale of whose goods             nonmembers does not exceed the value of the products
such proceeds result, whether or not such patrons are                   marketed for members. Anyone who shares in the profits of
members of the association. In order to establish compliance            a farmers' cooperative marketing association and is entitled
with the statutory requirement that the proceeds of sales, less         to participate in the management of the association must be
necessary operating expenses, be turned back to all                     regarded as a member of such association.
producers on the basis of either the quantity or the value of
                                                                               d. Cooperative associations engaged in the
the products furnished by them, it is necessary for such an
                                                                        purchasing of supplies and equipment for farmers, fruit
association to keep permanent records of the business done
                                                                        growers, livestock growers, dairymen, etc., and turning over
with both members and nonmembers. While patronage
                                                                        such supplies and equipment to them at actual cost, plus the
dividends must be paid to all producers on the same basis,
                                                                        necessary operating expenses, are exempt. The term supplies
the requirement is complied with if an association, instead of
                                                                        and equipment includes groceries and all other goods and
paying patronage dividends to nonmembers in cash, keeps
                                                                        merchandise used by farmers in the operation and
permanent records from which the proportionate share of the
                                                                        maintenance of a farm or farmer's household. The provisions
patronage dividends due to nonmember producers can be
                                                                        relating to a reserve or surplus and to capital stock shall
determined, and such shares are made applicable toward the
                                                                        apply to associations coming under this Paragraph. An
purchase price of a share of stock or of a membership in the
                                                                        association which purchases supplies and equipment for
association.
                                                                        nonmembers will not for such reason be denied exemption,
       b. An association which has capital stock will not               provided the value of the purchases for nonmembers does
for such reason be denied exemption:                                    not exceed the value of the purchases made for members,
        i.    if the dividend rate of such stock is fixed at not        and provided the value of the purchases made for
to exceed the legal rate of interest in the state of                    nonmembers who are not producers does not exceed
incorporation on the value of the consideration for which the           15 percent of the value of all its purchases.
stock was issued; and                                                          e. In order to be exempt under R.S. 47:608(11), an
        ii.   if substantially all of such stock (with the              association must establish that it has no income for its own
exception noted below) is owned by producers who market                 account other than that reflected in a reserve or surplus
their products or purchase their supplies and equipment                 authorized therein. An association engaged both in
through the association. Any ownership of stock by others               marketing farm products and in purchasing supplies and
than such actual producers must be satisfactorily explained             equipment is exempt only if it meets the prescribed
in the association's application for exemption. The                     requirements for each of its functions.
association will be required to show that the ownership of its
                                                                              f. To be exempt, an association must not only be
capital stock has been restricted as far as possible to such
                                                                        organized but actually operated in the manner of and for the
actual producers. If by statutory requirement all officers of
                                                                        purposes specified in R.S. 47:608(11).
an association must be shareholders, the ownership of a
share of stock by a nonproducer to qualify him as an officer                   g. Cooperative organizations engaged in activities
will not destroy the association's exemption. Likewise, if a            dissimilar from those of farmers, fruitgrowers, and the like,
shareholder for any reason ceases to be a producer and the              are not exempt.
association, because of a constitutional restriction or
prohibition or other reason beyond the control of the                        12. Corporations Organized to Finance Crop
association, is unable to purchase or retire the stock of such          Operations. A corporation organized by a farmers'
                                                                        cooperative marketing or purchasing association, or the
nonproducer, the fact that under such circumstances a small
                                                                        members thereof, for the purpose of financing the ordinary
amount of the outstanding capital stock is owned by
                                                                        crop operations of such members or other producers is
shareholders who are no longer producers will not destroy
                                                                        exempt, provided the marketing or purchasing association is
the exemption. The restriction placed on the ownership of
capital stock of an exempt cooperative association shall not            exempt under the provisions of R. S. 47:608(11) and the
apply to nonvoting preferred stock, provided the owners of              financing corporation is operated in conjunction with the
                                                                        marketing or purchasing association. The provisions of R.S.
such stock are not entitled or permitted to participate,
                                                                        47:608(11) relating to a reserve or surplus and to capital

Louisiana Administrative Code                  December 2011       24
                                                              Title 61, Part I

stock also apply to corporations coming under this                                  i.    Association of Employees
Paragraph.
                                                                                       (a). In general, an organization described in R.S.
    13. Corporations Organized for the Exclusive Purpose                  47:608(14) must be composed of individuals who are
of Holding Title to Property                                              entitled to participate in the association by reason of their
                                                                          status as employees who are members of a common working
       a. Corporations organized for the exclusive purpose
                                                                          unit. The members of a common working unit include, for
of holding title to property are exempt from the corporation
                                                                          example, the employees of a single employer, one industry,
franchise tax, but only if:
                                                                          or the members of one labor union. Although membership in
        i.   the entire amount of income from the property,               such an association need not be offered to all the employees
less expenses, is turned over to organizations which are                  of a common working unit, membership must be offered to
organized and operated exclusively for:                                   all of the employees of one or more classes of the common
                                                                          working unit and such class or classes must be selected on
           (a). religious purposes;
                                                                          the basis of criteria which do not limit membership to
           (b). charitable purposes;                                      shareholders, highly compensated employees, or other like
                                                                          individuals. The criteria for defining a class may be
           (c). scientific purposes;                                      restricted by conditions reasonably related to employment,
           (d). literary purposes; or                                     such as a limitation based on a reasonable minimum period
                                                                          of service, a limitation based on a maximum compensation,
           (e). educational purposes; and                                 or a requirement that a member be employed on a full-time
        ii.   no part of the net earnings inures to the benefit           basis. The criteria for defining a class may also be restricted
of any private shareholder or any organization organized and              by conditions relating to the type and amount of benefits
operated for a purpose other than those enumerated under                  offered, such as a requirement that members need a
§308.B.13.a.i.(a), whether or not the benefiting organization             reasonable minimum health standard in order to be eligible
is exempt under other provisions of R.S. 47:608.                          for life, sick, or accident benefits, or a requirement which
                                                                          excludes, or has the effect of excluding, employees who are
       b. Corporations whose articles of incorporation or                 members of another organization offering similar benefits to
by-laws permit activities other than the holding of title to              the extent such employees are eligible for such benefits.
property, collecting the income therefrom, paying the                     Whether a group of employees constitutes an acceptable
necessary expenses of operating the property, and turning                 class is a question to be determined with regard to all the
over the entire amount of its income, after expenses, to the              facts and circumstances, taking into account the guidelines
specified types of organizations are not exempt.                          set forth in this Clause. Furthermore, exemption will not be
    14. Voluntary Employees' Beneficiary Associations                     barred merely because the membership of the association
                                                                          includes some individuals who are not employees (within
      a. In general, the exemption provided by R.S.                       the meaning of §308.B.14.b.i.(b) or who are not members of
47:608(14) applies if all of the following requirements are               the common working unit, provided that these individuals
met:                                                                      constitute no more than 10 percent of the total membership
       i.  the      organization      is   an   association   of          of the association.
employees;                                                                               (b). Meaning of Employee
        ii.   membership     of    the     employees    in    the                      (i). The term employee has reference to the
association is voluntary;                                                 legal and bona fide relationship of employer and employee.
       iii.  the organization is operated only for the                                    (ii). The term employee also includes:
purpose of providing for the payment of life, sick, accident,
or other benefits to its members or their dependents;                                         [a]. an individual who would otherwise
                                                                          qualify for membership under §308.B.14.b.i.(b).(i), but for
        iv.   no part of the net earnings of the organization             the fact that he is retired or on leave of absence;
inures, other than by payment of the benefits described in
§308.B.14.a.iii, to the benefit of any private shareholder or                                [b]. an individual who would otherwise
individual; and                                                           qualify under §308.B.14.b.i.(b).(i), but subsequent to the
                                                                          time he qualifies for membership he becomes temporarily
       v.    at least 85 percent of the income of the                     unemployed. The term temporary unemployment means
organization consists of amounts collected from members                   involuntary or seasonal unemployment, which can
for the sole purpose of such payments of benefits and                     reasonably be expected to be of limited duration. An
meeting expenses.                                                         individual will still qualify as an employee under
       b. Explanation of requirements necessary to                        §308.B.14.b.i.(b).(i), during a period of temporary
constitute an organization described in R.S. 47:608(14)                   unemployment, he performs services as an independent
(LAC 61.I.308.B.14.b.ii). For purposes of §308.B.14.b:                    contractor or for another employer; or




                                                                    25           Louisiana Administrative Code            December 2011
                                                      REVENUE AND TAXATION

                 [c]. an individual who qualifies as an                   since they protect the employee in the event of interruption
employee under the state or federal unemployment                          of earning power. However, severance payments at a time of
compensation law covering his employment, whether or not                  mandatory or voluntary retirement and benefits of the type
such an individual could qualify as an employee under the                 provided by pension, annuity, profit-sharing, or stock bonus
usual common law rules applicable in determining the                      plans are not other benefits since their purpose is not to
employer-employee relationship.                                           protect in the event of an interruption of earning power.
                                                                          Furthermore, the term other benefits does not include the
        ii.   Explanation of Voluntary Association. An
                                                                          furnishing of automobile or fire insurance or the furnishing
association is not a voluntary association if the employer
                                                                          of scholarships to the members' dependents.
unilaterally imposes membership in the association on the
employee as a condition of his employment and the                                 iv.   Inurement to the Benefit of Any Private
employee incurs a detriment (for example, in the form of                  Shareholder or Individual. No part of the net earnings of the
deductions from his pay) because of his membership in the                 organization may inure to the benefit of any private
association. An employer will not be deemed to have                       shareholder or individual other than through the payment of
unilaterally imposed membership on the employee if such                   benefits described in §308.B.14.b.iii. The disposition of
employer requires membership as the result of a collective                property to, or the performance of services for, any person
bargaining agreement which validly requires membership in                 for less than its cost (including the indirect costs) to the
the association.                                                          association, other than for the purpose of providing such a
                                                                          benefit, will constitute inurement. Further, the payment to
       iii.   Life, Sick, Accident, or Other Benefits
                                                                          any member of disproportionate benefits will not be
           (a). In general, a voluntary employee's                        considered a benefit within the meaning of §308.B.14.b.iii
beneficiary association must provide solely (and not merely               even though the benefit is of the type described in
primarily) for the payment of life, sick, accident, or other              §308.B.14.b.iii. For example, the payment to highly
benefits to its members or their dependents. Such benefits                compensated       personnel    of     benefits     which   are
may take the form of cash or non-cash benefits.                           disproportionate in relation to benefits received by other
                                                                          members of the association will constitute inurement.
              (i). Life Benefits. The term life benefits
                                                                          However, the payment to similarly situated employees of
includes life insurance benefits, or similar benefits payable             benefits which differ in kind or amount will not constitute
on the death of the member, made available to members for                 inurement if such benefits are paid pursuant to objective and
current protection only. Thus, term life insurance is an
                                                                          reasonable standards. For example, two employees who are
acceptable benefit. However, life insurance protection made
                                                                          similarly situated while employed receive unemployment
available under an endowment insurance plan or a plan
                                                                          benefits which differ in kind and amount. These
providing cash surrender values to the member is not
                                                                          unemployment benefits will not constitute inurement if the
included. Life benefits may be payable to any designated                  reason for the larger payment to the one employee is to
beneficiary of a member.                                                  provide training for that employee to qualify for
              (ii). Sick and Accident Benefits. A sick and                reemployment and the other employee has already received
accident benefit is, in general, an amount furnished in the               such training. Furthermore, the rebate of excess insurance
event of illness or personal injury to or on behalf of                    premiums based on experience to the payor of the premium,
members or their dependents. For example, a sick and                      or a distribution to member-employees upon the dissolution
accident benefit includes an amount provided under a plan to              of the association, will not constitute inurement. However,
reimburse a member for amounts he expends because of                      the return of contributions to an employer upon the
illness or injury, or for premiums which he pays to a medical             dissolution of the association will constitute inurement.
benefit program such as Medicare. Sick and accident
                                                                                  v.    Meaning of the Term Income. The requirement
benefits may also be furnished in noncash form, such as
                                                                          of R.S. 47:608(14) that 85 percent of the income of a
benefits in the nature of clinical care, services by visiting             voluntary employees' beneficiary association consist of
nurses, and transportation furnished for medical care.                    amounts collected from members and amounts contributed
             (iii). Other Benefits. The term other benefits               by the employer for the sole purpose of making payment of
includes only benefits furnished to members or their                      the benefits described in §308.B.14.b.iii (including meeting
dependents which are similar to life, sick and accident                   the expenses of the association) assures that not more than a
benefits. A benefit is similar to a life, sick or accident benefit        limited amount (15 percent) of an association's income is
if it is intended to safeguard or improve the health of the               from sources such as investments, selling goods, and
employee or to protect against a contingency which                        performing services, which are foreign to what must be the
interrupts earning power. Thus, paying vacation benefits,                 principal source of the association's income, i.e., the
subsidizing recreational activities such as athletic leagues,             employees. Therefore, the term income as used in R.S.
and providing vacation facilities are considered other                    47:608(14) means the gross receipts of the organization for
benefits since such benefits protect against physical or                  the taxable year, including income from tax-exempt
mental fatigue and accidents or illness which may result                  investments (but exclusive of gifts and donations) and
therefrom.      Severance     payments        or    supplemental          computed without regard to losses and expenses paid or
unemployment compensation benefits paid because of a                      incurred for the taxable year. The term income does not
reduction in force or temporary layoff are other benefits                 include the return to the association of an amount previously

Louisiana Administrative Code                   December 2011        26
                                                             Title 61, Part I

expended. Thus, for example, rebates of insurance premiums               corporation is subject to the tax, and is based on its entire
paid in excess of actual insurance costs do not constitute               issued and outstanding capital stock, surplus, and undivided
income for this purpose. In order to be an amount collected              profits, and borrowed capital determined as of the close of
from a member, it must be collected as a payment, such as                the previous calendar or fiscal year. There is no proration of
dues, qualifying the member to receive an allowable benefit,             the tax for a portion of the year in the case of dissolution of a
or as a payment for an allowable benefit actually received.              domestic corporation, withdrawal from the state by a foreign
For example, if the association furnishes medical care in a              corporation, or where a corporation otherwise ceases to be
hospital operated by it for its members, an amount received              subject to the tax. The tax is payable to the Secretary of
from the member as payment of a portion of the hospital                  Revenue on or before the fifteenth day of the third month
costs is an amount collected from such a member. However,                following the month in which the tax becomes due; in the
an amount paid by an employee as interest on a loan made                 case of a calendar year taxpayer, the tax becomes due on
by the association is not an amount collected from a member              January 1 and is payable to the secretary on or before April
since the interest is not an amount collected as payment for             15. If the day on which the tax is payable falls on a Saturday,
an allowable benefit received. For the same reason, gross                Sunday, or legal holiday the tax is payable on the next
receipts collected by the association as a result of employee            business day. For purposes of this Section, fiscal or calendar
purchases of work clothing from an association-owned store,              year shall be determined by reference to the annual
or employee purchases of food from an association-owned                  accounting period regularly used by the corporation in
vending machine, are not amounts collected from members.                 keeping its books.
Amounts collected from members or amounts contributed to
                                                                           B. Payment of the tax shall be accompanied by a full,
the association by the employer of the members are not
                                                                         accurate, and complete report prepared on forms furnished
considered gifts or donations.
                                                                         by the Secretary of Revenue, which shall be signed by a duly
        vi.   Record-Keeping Requirements                                authorized official of the corporation.
           (a). In addition to such other records which may                 C. Whenever the secretary has granted permission to a
be required, every organization described in R.S. 47:608(14)             corporation to change its accounting period under the
must maintain records indicating the amount of benefits paid             provisions of R. S. 47:613, the tax to be paid for the period
by such organization to each member. If the organization is              from the end of the last period for which the tax has already
financed, in whole or in part, by amounts collected from                 become due until the end of the new accounting period shall
members, the organization must maintain records indicating               be determined by multiplying the ratio that the number of
the amount of each member's contribution.                                such months bears to 12, times the tax computed for an
                                                                         annual period based on the previous period's closing. All
           (b). A        supplemental      unemployment
                                                                         subsequent returns shall be prepared on the basis of the new
compensation benefit plan may also qualify for exemption
                                                                         accounting period.
under the provisions of R.S. 47:608(14).
                                                                              1. The previous period's closing means the closing of
     15. Teachers' Retirement Fund Associations. Teachers'
                                                                         the new accounting period.
retirement fund associations are exempt from the corporation
franchise tax only if:                                                        2. Example: A taxpayer has been filing Corporation
                                                                         Income and Franchise Tax returns on a FYE June 30 basis.
        a. they are of a purely local character whose
                                                                         In December 2002, the taxpayer obtains approval to change
activities are confined to a particular community, place, or
                                                                         his accounting year-end to December 31. For franchise tax
district, irrespective of political subdivisions, but if the
                                                                         purposes, a taxpayer will compute the franchise tax due
activities are limited only by the borders of a state, it cannot
                                                                         based on its December 31, 2002 information and multiply
be considered to be purely local in character;
                                                                         the tax by 50 percent (6/12). On its prior return, which was
      b. its income consists solely of amounts received                  based upon the June 30, 2002 balance sheet, the taxpayer
from public taxation, assessments upon the teaching salaries             paid franchise tax through June 30, 2003. When the taxpayer
of members, and income from investments; and                             changes its accounting period to December 31, 2002, the
                                                                         franchise tax is due only for the period July 1, 2003 through
       c. no part of its net earnings inures (other than
                                                                         December 31, 2003, a period of six months. This short
through the payment of retirement benefits) to the benefit of
                                                                         period return will be due April 15, 2003.
any private shareholder or individual.
                                                                           D. In the case of a mere change in the name or change in
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:608.                                                                  the state of incorporation, the tax shall be determined and
  HISTORICAL NOTE: Promulgated by the Department of                      paid as if the change had not occurred.
Revenue and Taxation, Income and Corporation Franchise Taxes               E. For provisions relating to newly taxable corporations,
Section, Office of Group III, LR 6:25 (January 1980), amended LR
                                                                         see R.S. 47:611.
11:108 (February, 1985), repromulgated by the Department of
Revenue, Policy Services Division, LR 30:459 (March 2004).                 F. For provisions relating to requests for extensions of
§309.     Due Date, Payment, and Reporting of Tax                        time within which to file the report required by this Chapter,
                                                                         see R.S. 47:612.
   A. The corporation franchise tax becomes due on the
first day of each calendar or fiscal year in which a

                                                                   27           Louisiana Administrative Code            December 2011
                                                    REVENUE AND TAXATION

  G. In the case of mergers which have an effective time                   B. The granting of an extension of time within which to
and date of 12 midnight of the last day of the merged                   file the report required by this Chapter does not
corporation's accounting period which coincides with the last           automatically grant an extension of time within which the
day of the surviving corporation's accounting period, the               tax shall be paid, and the secretary may require payment of
surviving corporation shall include the assets of the merged            the estimated amount of tax due as a condition to granting
corporation with its assets in computing the ratios of                  the report filing extension.
property and assets for the purpose of determining the
                                                                           C. Whenever an extension has been granted with respect
amount of tax due for the year following the date of the
                                                                        to payment of the tax, interest accrues thereon for the period
merger.
                                                                        from the payment date prescribed by R.S. 47:609 to the date
  H. If the surviving corporation was not previously                    on which the tax is paid.
subject to the tax, it shall pay the minimum tax for the
accounting period within which such merger date occurs as                 AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                        47:612.
required of newly taxable corporations under the provisions
                                                                          HISTORICAL NOTE: Promulgated by the Department of
of R.S. 47:611.                                                         Revenue and Taxation, Income and Corporation Franchise Taxes
  AUTHORITY NOTE: Promulgated in accordance with R.S.                   Section, Office of Group III, LR 6:25 (January 1980), amended LR
47:609 and 1511.                                                        11:108 (February 1985), repromulgated by the Department of
  HISTORICAL NOTE: Promulgated by the Department of                     Revenue, Policy Services Division, LR 30:469 (March 2004).
Revenue and Taxation, Income and Corporation Franchise Taxes
Section, Office of Group III, LR 6:25 (January 1980), amended LR
                                                                        §313.    Fiscal Year; Accounting Period
11:108 (February 1985), amended by the Department of Revenue,              A. Fiscal year means an accounting period of 12 months
Policy Services Division, LR 28:97 (January 2002), LR 30:468            ending on the last day of any month other than December. In
(March 2004), LR 31:90 (January 2005).
                                                                        the case of a taxpayer that, in keeping its books, regularly
§311. Newly Taxable Corporations                                        uses a 52- to 53-week period permitted under R.S. 47:91(F),
   A. Every corporation shall pay only the minimum tax in               the secretary of revenue and taxation may permit the use of
the first accounting period or fraction thereof in which it             such accounting period for purposes of this Chapter,
becomes subject to the tax. It is immaterial whether the                provided that in any case in which the effective date or the
corporation became liable for the tax on the first day or the           applicability of any provisions of this Chapter is expressed
last day of the accounting period regularly used by the                 in terms of taxable years beginning or ending with reference
taxpayer in keeping its books; the minimum tax is due for               to a specified date which is the first or last day of a month,
that accounting period. The tax accrues immediately upon                such 52- or 53-week accounting period shall be treated:
the corporation's becoming subject thereto.                                 1. as beginning with the first day of the calendar
   B. The tax for all accounting periods subsequent to the              month beginning nearest to the first day of such taxable
period in which the corporation became subject to the tax               period; or
accrues on the first day of the period and is based on the
previous period's closing.                                                  2. as ending with the last day of the calendar month
                                                                        ending nearest to the last day of such taxable period, as the
   C. In all instances, the tax is payable on or before the             case may be.
fifteenth day of the fourth month following the month in
which the tax accrues.                                                    B. However, no fiscal year will be recognized unless,
                                                                        before its close, it was definitely established as an
  AUTHORITY NOTE: Promulgated in accordance with 47:611.
  HISTORICAL NOTE: Promulgated by the Department of                     accounting period and the books of the taxpayer were kept
Revenue and Taxation, Income and Corporation Franchise Taxes            accordingly.
Section, Office of Group III, LR 6:25 (January 1980), amended LR          C. Once an accounting period has been established, no
11:108 (February 1985), repromulgated by the Department of
Revenue, Policy Services Division, LR 30:469 (March 2004).
                                                                        change from that period shall be made without the approval
                                                                        of the secretary of revenue and taxation.
§312.    Extension of Time for Filing Return and Paying
         the Tax                                                          AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                        47:613.
   A. When such application for an extension of time within               HISTORICAL NOTE: Promulgated by the Department of
which to file the report required by this Chapter has been              Revenue and Taxation, Income and Corporation Franchise Taxes
filed, the Secretary of Revenue and Taxation may grant such             Section, Office of Group III, LR 6:25 (January 1980), amended LR
extension for a period not to exceed six months from the due            11:108 (February 1985), repromulgated by the Department of
date of the report prescribed by R.S. 47:609 and R.S. 47:611.           Revenue, Policy Services Division, LR 30:469 (March 2004).
In any case in which the taxpayer has filed a request for an            §320.    Books of the Corporation
automatic extension of time within which to file its federal
                                                                           A. Generally the "books of the corporation" are financial
income tax return with the U.S. Internal Revenue Service, a
                                                                        statements that will include an income statement, a balance
copy of the automatic extension request attached to the
                                                                        sheet (listing assets, liabilities, and owners equity including
report required by this Chapter will be accepted by the
                                                                        changes thereto), and other appropriate information. The
secretary as an application filed under this Section, and an
extension equal to that granted by the federal government               following may be considered applicable financial statements.
will be granted by Louisiana.

Louisiana Administrative Code                 December 2011        28
                                                              Title 61, Part I

     1. Statement Required to be Filed with the Securities                         i.   a financial statement described in Paragraph
and Exchange Commission (SEC). A financial statement that                 A.1 of this Section;
is required to be filed with the Securities and Exchange
                                                                                 ii.  a certified audited statement described in
Commission.
                                                                          Paragraph A.2 of this Section;
     2.a. Certified Audited Financial Statement. A certified
                                                                                 iii.  a financial statement provided to a government
audited financial statement that is used for credit purposes,
                                                                          regulator described in Paragraph A.3 of this Section;
for reporting to shareholders or for any other substantial
non-tax purpose. Such a statement must be accompanied by                         iv.  any other financial statement described in
the report of an independent (as defined in the American                  Paragraph A.4 of this Section.
Institute of Certified Public Accountants Professional
Standards, Code of Professional Conduct, Rule 101 and its                        b. For example, Corporation A, which uses a
                                                                          calendar year for both financial accounting and tax purposes,
interpretations and rulings) certified public accountant or, in
                                                                          prepares a financial statement for calendar year 2003 that is
the case of a foreign corporation, a similarly qualified and
                                                                          provided to a state regulator and an unaudited financial
independent professional who is licensed in any foreign
                                                                          statement that is provided to A's creditors. The statement
country. A financial statement is "certified audited" for
purposes of this Section if it is:                                        provided to the state regulator is A's financial statement with
                                                                          the highest priority and thus is A's financial statement.
        i.    certified to be fairly presented (an unqualified
                                                                              2. Special Priority Rules for Use of Certified Audit
or "clean" opinion);
                                                                          Financial Statements and Other Financial Statements
        ii.   subject to a qualified opinion that such
                                                                                a. In the case of financial statements described in
financial statement is fairly presented subject to a concern
                                                                          Paragraphs A.2 and A.4 of this Section, within each of these
about a contingency (a qualified "subject to" opinion);
                                                                          categories the taxpayer's applicable financial statement is
       iii.   subject to a qualified opinion that such                    determined according to the following priority:
financial statement is fairly presented, except for a method
                                                                                     i.   a statement used for credit purposes;
of accounting with which the accountant disagrees (a
qualified "except for" opinion); or                                                 ii.   a statement used for disclosure to shareholders;
                                                                          and
        iv.  subject to an adverse opinion, but only if the
accountant discloses the amount of the disagreement with                        iii.   any other statement used for other substantial
the statement.                                                            non-tax purposes.
        b. Any other statement or report, such as a review                       b. For example, Corporation B uses a calendar year
statement or a compilation report that is not subject to a full           for both financial accounting and tax purposes. B prepares a
audit is not a certified audit statement.                                 financial statement for 2003 that it uses for credit purposes
                                                                          and prepares another financial statement for calendar year
     3. A Financial Statement Provided to a Government
Regulator. A financial statement that is required to be                   2003 that it uses for disclosure to shareholders. Both
provided to the federal government, or any agency thereof                 financial statements are unaudited. The statement used for
                                                                          credit purposes is B's financial statement with the highest
(other than the Securities and Exchange Commission), a
                                                                          priority and thus is B's applicable financial statement.
state government or agency thereof, or a political
subdivision of a state or agency thereof. Except as otherwise                  3. Priority among Financial Statements Provided a
provided herein, an income tax return, franchise tax return or            Government Regulator. In the case of two or more financial
other tax return prepared solely for the purpose of                       statements described in Paragraph A.3 of this Section that
determining any tax liability that is filed with a federal, state         are of equal priority, the taxpayer's applicable financial
or local government or agency cannot be an applicable                     statement is determined according to the following priority:
financial statement.
                                                                                a. a statement required to be provided to the federal
     4. Other Financial Statements. A financial statement                 government or any of its agencies;
that is used for credit purposes, for reporting to shareholders,
or for any other substantial non-tax purpose, even though                       b. a statement required to be provided to a state
such financial statement is not described in Paragraphs A.1-3             government or any of its agencies; and
of this Section.                                                                c. a statement required to be provided to any
  B. Priority among Statements                                            subdivision of a state or any agency of a subdivision.

     1. In general, if a taxpayer has more than one financial               C. Whenever more than one entity, for franchise tax
statement described in Paragraphs A.1-4 of this Section, the              purposes, is included in a corporation's books, as herein
taxpayer's applicable financial statement is the statement                defined, separate books shall be constructed for each entity
with the highest priority.                                                doing business in Louisiana. These books shall be
                                                                          constructed following the same principles and methods as
       a.   Priority is determined in the following order:                were employed when constructing the original books.



                                                                    29           Louisiana Administrative Code            December 2011
                                                    REVENUE AND TAXATION

  D. Nothing in this regulation shall restrict the secretary's              Hurricane Rita Employer—any employer that
authority to revise the books of the corporation as needed for          conducted an active trade or business on September 23,
the purpose of ascertaining the correct franchise tax liability.        2005, in the Rita GO Zone and the employer's active trade or
                                                                        business must have been inoperable on any day after
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:604, R.S. 47:605 and R.S. 47:1511.                                   September 23, and before January 1, 2006, as a result of
  HISTORICAL NOTE: Promulgated by the Department of                     damage sustained due Hurricane Rita.
Revenue, Policy Services Division, LR 30:807 (April 2004).                B. The Katrina Emergency Tax Relief Act of 2005, Pub.
        Chapter 6. Presidential Disaster                                L. No. 109-73, 119 Stat. 2016 (H.R. 3768) ("KETRA") and
                                                                        the Gulf Opportunity Zone Act of 2005, Pub. L. No. 109-
                    Relief                                              135, 119 Stat. 2577 (H.R. 4440) provide for the following
§601.    Presidential Disaster Relief Credits                           federal income tax credits, which the secretary hereby
                                                                        declares as presidential disaster area disaster relief credits.
  A. Definitions
                                                                            1.        Employee Retention Credit
    Gulf Opportunity Zone (GO Zone)—that portion of the
Hurricane Katrina disaster area determined by the President                   a. This is a new credit. It provides a credit of 40
to warrant individual or individual and public assistance               percent of the qualified wages paid by an eligible employer
from the federal government under the Robert T. Stafford                to an eligible employee in the GO Zone or the Rita GO
Disaster Relief and Emergency Assistance Act.                           Zone. The wages are capped at $6,000. Thus, the maximum
                                                                        amount of the credit is $2,400 or 40 percent of $6,000.
    Hurricane Katrina Disaster Area—any area with
respect to which a major disaster has been declared by the                     b. GO Zone Qualified wages as defined in IRC
President before September 14, 2005, under Section 401 of               51(c)(1) are the wages paid or incurred by an eligible
the Robert T. Stafford Disaster Relief and Emergency                    employer with respect to an eligible employee on any day
Assistance Act by reason of Hurricane Katrina.                          after August 28, 2005, and before January 1, 2006, during
                                                                        the period when the trade or business first became
     Hurricane Katrina Employee—an individual who on                    inoperable and ending on the date on which the business
August 28, 2005, has a principal place of abode in the GO               resumed significant operations. Qualified wages include
Zone and is hired during the two year period beginning on               wages paid to an employee whether the employee performed
such date for a position with the principal place of                    the service, whether the service was performed elsewhere
employment in the GO Zone or an individual who on August                other than the principal place of employment or whether
28, 2005, had a principal place of abode in the GO Zone but             paid before significant operations have resumed.
was displaced from such abode due to Hurricane Katrina and
is hired during the period beginning on such date and ending                   c. Rita GO Zone qualified wages as defined in IRC
on December 31, 2005, without regard to whether the new                 51(c)(1) are the wages paid or incurred by an eligible
principal place of employment is in the GO Zone.                        employer with respect to an eligible employee on any day
                                                                        after September 23, 2005, and before January 1, 2006,
     Hurricane Katrina Employer—any employer that                       during the period when the trade or business first became
conducted an active trade or business on August 28, 2005, in            inoperable and ending on the date on which the business
the GO Zone and the employer's active trade or business                 resumed significant operations. Qualified wages include
must have been inoperable on any day after August 28,                   wages paid to an employee whether the employee performed
2005, and before January 1, 2006, as a result of damage                 the service, whether the service was performed elsewhere
sustained due to Hurricane Katrina.                                     other than the principal place of employment or whether
     Rita Gulf Opportunity Zone (Rita GO Zone)—that                     paid before significant operations have resumed.
portion of the Hurricane Rita disaster area determined by the                 d. The secretary has determined that the Employee
President to warrant individual or individual and public                Retention Credit is a federal disaster relief credit granted for
assistance from the Federal Government under the Robert T.              Hurricanes Katrina and Rita presidential disaster areas.
Stafford Disaster Relief and Emergency Assistance Act by
reason of Hurricane Rita.                                                   2.        Work Opportunity Credit
     Hurricane Rita Disaster Area—any area with respect to                       a.     Pre Hurricane Katrina
which a major disaster has been declared by the President
before October 6, 2005, under Section 401 of the Robert T.                       i.   The Work Opportunity Credit is available on
Stafford Disaster Relief and Emergency Assistance Act by                an elective basis to employers who employ individuals from
reason of Hurricane Rita.                                               one or more of eight target groups. The eight target groups
                                                                        are:
     Hurricane Rita Employee—an individual who on
September 23, 2005, has a principal place of abode in the                         (a) families that receive benefits from the
Rita GO Zone but was displaced from such abode due to                   Temporary Assistance for Needy Families Program;
Hurricane Katrina and is hired during the period beginning                              (b) high-risk youth;
on such date and ending on December 31, 2005, without
regard to whether the new principal place of employment is                              (c) qualified ex-felons;
in the Rita GO Zone.

Louisiana Administrative Code                 December 2011        30
                                                            Title 61, Part I

             (d) vocational rehabilitation referrals;                               c.     Post-Hurricane Katrina
             (e) qualified summer youth employees;                              i.    The Gulf Opportunity Zone Act of 2005
                                                                        provides temporary income exclusion for the value of in
             (f) qualified veterans;
                                                                        kind lodging for a month to a qualified employee by or on
             (g) families receiving food stamps; and                    behalf of a qualified employer.
          (h) persons receiving Supplemental Security                          ii.   The amount of the exclusion for any month can
Income benefits.                                                        not exceed $600.
        ii.   Certification is required for an individual to be               iii.    The provision also permits a temporary credit
treated as a member of a targeted group.                                to a qualified employer of 30 percent of the value of the
                                                                        lodging excluded from the income of a qualified employee.
       iii.  The credit equals 40 percent of qualified first-           The amount taken as a credit is not deductible by the
year wages, which are capped at $6,000. The percentage
                                                                        employer.
decreases to 25 percent if the employee works less than 400
hours.                                                                          iv.   The secretary has determined that the
                                                                        Employer-Provided Housing Credit, with respect to wages
       iv.   This credit does not apply to rehires or wages
                                                                        paid to Hurricane Katrina employees, is a federal disaster
paid to individuals who had previously been employed by                 relief credit granted for the Hurricane Katrina presidential
the employer.                                                           disaster areas.
        v.     This credit expires December 31, 2005.
                                                                               4.        Rehabilitation Tax Credit
       b.    Post Hurricane Katrina
                                                                                    a.     Definitions
        i.   The KETRA Act provides that Hurricane
                                                                                       Certified Historic Structure—any building that
Katrina employees are members of a targeted group for the
                                                                        is listed in the National Register, or that is located in a
purpose of the Work Opportunity Credit.                                 registered historic district and is certified by the Secretary of
       ii.  The certification requirement for Hurricane                 the Interior to the Secretary of the Treasury as being of
Katrina employees is waived.                                            historic significance to the district.
       iii.   Wages paid to individuals who had previously                            Qualified Rehabilitated Building—a building
been employed, which would normally not be included in                  that meets the following requirements: retention of existing
qualified first year wages, are now included for Hurricane              external walls and internal structural framework of the
Katrina employee unless they were employed by the                       building and a substantial rehabilitation requirement credit
employer on August 28, 2005.                                            only if the rehabilitation expenditures during the 24-month
                                                                        period selected by the taxpayer and ending within the
       iv.  The expiration date is waived for Hurricane                 taxable year exceed the greater of:
Katrina employees.
                                                                                         (1). the adjusted basis of the building (and
        v.    The secretary has determined that the Work                its structural components); or
Opportunity Credit, with respect to wages paid to Hurricane
Katrina employees, is a federal disaster relief credit granted                                 (2). $5,000.
for the Hurricane Katrina presidential disaster areas.
                                                                               b. Pre-Hurricane Katrina—A 20 percent credit is
    3. Employer-Provided Housing Credit for Individuals                 provided for qualified rehabilitation expenditures with
Affected by Hurricane Katrina                                           respect to certified historic structures. A 10 percent credit is
                                                                        also provided for qualified rehabilitation expenditure with
       a.    Definitions                                                respect with a qualified rehabilitation building placed in
              Qualified Employee—with respect to a month,               service before 1936.
an individual who:                                                                  c.     Post-Hurricane Katrina
                (1). on August 28, 2005, had a principal                         i.   The Gulf Opportunity Zone Act of 2005
residence in the Gulf Opportunity ("GO") Zone; and                      increases the 20 percent credit to 26 percent with respect to
               (2). performs substantially all of his or her            certified historic structures. The Act also increases the 10
employment services in the GO Zone for the qualified                    percent credit to 13 percent for qualified rehabilitation
employer furnishing the lodging.                                        buildings.
              Qualified Employer—any employer with a                            ii.   The qualifying certified historic structures and
trade or business located in the GO Zone.                               qualified rehabilitation buildings must be located in the GO
                                                                        Zone.
      b. Pre-Hurricane       Katrina—Employer-Provided
Housing is includable in income as compensation pursuant                       iii.  These expenditures must have been incurred
to IRC §61.                                                             with respect to such buildings on or after August 28, 2005,
                                                                        and before January 1, 2009.


                                                                  31           Louisiana Administrative Code            December 2011
                                                     REVENUE AND TAXATION

       iv.    The secretary has determined that the increase                6.        Low Income Housing Credit
in the Rehabilitation Tax Credit, with respect to the
                                                                                 a.     Pre Hurricane Katrina
rehabilitation of buildings is a federal disaster relief credit
granted for the Hurricane Katrina presidential disaster areas.                  i.    The low-income housing credit may be
    5.        Hope Scholarship and Lifetime Learning Credits            claimed over a 10-year period for the cost of rental housing
                                                                        occupied by tenants having incomes below specified levels.
         a.     Pre-Hurricane Katrina                                   The amount of the credit for any taxable year in the credit
          i.   The Hope Scholarship credit is a                         period is the applicable percentage of the qualified basis of
nonrefundable credit of up to $1,500 per student per year for           each qualified low-income building. The qualified basis of
qualified tuition and related expenses paid for the first two           any qualified low-income building for any taxable year
years of the student's post-secondary education in a degree             equals the applicable fraction of the eligible basis of the
or certificate program.                                                 building.
        ii.    The Lifetime Learning Credit is equal to 20                      ii.   In order to be eligible for the low-income
percent of qualified tuition and related expenses incurred              housing credit, a qualified low-income building must be part
during the taxable year on behalf of the taxpayer, the                  of a qualified low-income housing project. In general, a
taxpayer's spouse, or any dependents. Up to $10,000 of                  qualified low-income housing project is defined as a project
qualified tuition and related expenses per taxpayer return are          which satisfies one of two tests at the election of the
eligible for the Lifetime Learning Credit. A taxpayer may               taxpayer. The first test is met if 20 percent or more of the
claim the Lifetime Learning Credit for an unlimited number              residential units in the project are both rent-restricted and
of taxable years.                                                       occupied by individuals whose income is 50 percent or less
        iii.   Both the Hope Scholarship and the Lifetime               of area median gross income (the "20-50 test"). The second
Learning Credits are available for "qualified tuition and               test is met if 40 percent or more of the residential units in
related expenses," which include tuition and fees (excluding            such project are both rent-restricted and occupied by
nonacademic fees) required to be paid to an eligible                    individuals whose income is 60 percent or less of area
educational institution as a condition of enrollment or                 median gross income (the "40-60 test").
attendance of a student at the institution. Charges and fees                   iii.   Generally, the aggregate credit authority
associated with meals, lodging, insurance, transportation,              provided annually to each state for calendar year 2006 is
and similar personal, living or family expenses are not                 $1.90 per resident with a minimum annual cap of $2,180,000
eligible for the credit. The expenses of education involving            for certain small population states. These amounts are
sports, games, or hobbies are not qualified tuition expenses            indexed for inflation. These limits do not apply in the case of
unless this education is part of the student's degree program,          projects that also receive financing with proceeds of tax-
or the education is undertaken to acquire or improve the job            exempt bonds issued subject to the private activity bond
skills of the student.                                                  volume limit.
         b.     Post-Hurricane Katrina                                           b.     Post Hurricane Katrina
        i.   The provision temporarily expands the Hope
                                                                                  i.  The otherwise applicable housing credit ceiling
Scholarship and Lifetime Learning credits for students
                                                                        amount is increased for each of the states within the Gulf
attending an eligible education institution located in the Gulf
                                                                        Opportunity Zone. This increase applies to calendar years
Opportunity Zone.
                                                                        2006, 2007, and 2008. The additional credit cap for each of
        ii.   The Hope Scholarship credit is increased to               the affected states equals $18 times the number of such
100 percent of the first $2,000 in qualified tuition and related        state's residents within the Gulf Opportunity Zone. This
expenses and 50 percent of the next $2,000 of qualified                 amount is not adjusted for inflation. For purposes of this
tuition and related expenses for a maximum credit of $3,000             additional credit cap amount, the determination of
per student.                                                            population for any calendar year is made on the basis of the
        iii.   The Lifetime Learning credit rate is increased           most recent census estimate of the resident population of the
from 20 percent to 40 percent. Thus, the maximum amount                 state in the Gulf Opportunity Zone released by the Bureau of
of the credit is $4000 or 40 percent of $10,000.                        the Census before August 28, 2005.
         iv.   The provision expands the definition of                          ii.   Under the provision, the Gulf Opportunity
qualified expenses to mean qualified higher education                   Zone, the Rita Go Zone, and the Wilma Go Zone are treated
expenses as defined under the rules relating to qualified               as high-cost areas for purposes of the low income housing
tuition programs, including certain room and board expenses             credit for property placed-in-service in calendar years 2006,
for at least half-time students.                                        2007, and 2008. Therefore, buildings located in the Gulf
         v.    The secretary has determined that the increase           Opportunity Zone, the Rita Go Zone, and the Wilma Go
in the Hope Scholarship and the Lifetime Learning Credits,              Zone are eligible for the enhanced credit. The 20-percent of
with respect to qualified tuition and related expenses of               population restriction is waived for this purpose. This
students in the Gulf Opportunity Zone, are federal disaster             enhanced credit applies regardless of whether the building
relief credits granted for the Hurricane Katrina presidential           receives its credit allocation under the otherwise applicable
disaster areas.                                                         low-income housing credit cap or the additional credit cap.


Louisiana Administrative Code                  December 2011       32
                                                              Title 61, Part I

       iii.  The additional credit cap available for states               80 percent of the greater of metropolitan area median family
within the Gulf Opportunity Zone for calendar years 2006,                 income or statewide median family income (for a
2007 and 2008 may not be carried forward from any year to                 nonmetropolitan census tract, does not exceed 80 percent of
any other year. The present-law rules apply for purposes of               statewide median family income). In the case of a population
the Rita Go Zone and the Wilma Go Zone.                                   census tract located within a high migration rural county,
        iv.    The secretary has determined that all amounts              low-income is defined by reference to 85 percent (rather
of the low income housing credit allocated throughout the                 than 80 percent) of statewide median family income. For this
state during calendar years 2006, 2007, and 2008 are federal              purpose, a high migration rural county is any county that,
disaster relief credits granted for the Gulf Opportunity Zone.            during the 20-year period ending with the year in which the
                                                                          most recent census was conducted, has a net out-migration
    7.        New Markets Tax Credit                                      of inhabitants from the county of at least 10 percent of the
         a.     Pre Hurricane Katrina                                     population of the county at the beginning of such period.
          i.   IRC Section 45D provides a new markets tax                         iv.   The maximum annual amount of qualified
credit for qualified equity investments made to acquire stock             equity investments is capped at $2.0 billion per year for
in a corporation, or a capital interest in a partnership, that is         calendar years 2004 and 2005, and at $3.5 billion per year
a qualified community development entity ("CDE"). The                     for calendar years 2006 and 2007.
amount of the credit allowable to the investor (either the                       b. Post Hurricane Katrina
original purchaser or a subsequent holder) is a 5 percent                           i.  The provision allows an additional allocation
credit for the year in which the equity interest is purchased             of the new markets tax credit in an amount equal to
from the CDE and for each of the following two years, and a               $300,000,000 for 2005 and 2006, and $400,000,000 for
6 percent credit for each of the following four years. The                2007, to be allocated among qualified CDEs to make
credit is determined by applying the applicable percentage (5             qualified low-income community investments within the
or 6 percent) to the amount paid to the CDE for the                       Gulf Opportunity Zone. To qualify for any such allocation, a
investment at its original issue, and is available for a taxable          qualified CDE must have as a significant mission the
year to the taxpayer who holds the qualified equity                       recovery and redevelopment of the Gulf Opportunity Zone.
investment on the date of the initial investment or on the                The carryover of any unused additional allocation is applied
respective anniversary date that occurs during the taxable                separately from the carryover with respect to allocations
year. The credit is recaptured if at any time during the seven-           made under present law.
year period that begins on the date of the original issue of                       ii.  The secretary has determined that the
the investment the entity ceases to be a qualified CDE, the               additional allocation of the new markets tax credit totaling
proceeds of the investment cease to be used as required, or               $300,000,000 for 2005 and 2006 and $400,000,000 for 2007
the equity investment is redeemed.                                        are federal disaster relief credits granted for the Gulf
                                                                          Opportunity Zone.
        ii.   A qualified CDE is any domestic corporation
or partnership: (1) whose primary mission is serving or                        8. The Employee Retention Credit, the Katrina
providing investment capital for low-income communities or                disaster relief portion of the Work Opportunity Credit, the
low-income persons; (2) that maintains accountability to                  Low Income Housing Credit for years 2006, 2007, and 2008
residents of low-income communities by their representation               and the Gulf Opportunity Zone portion of the New Markets
on any governing board of or any advisory board to the                    Tax Credit are part of the general business credit under IRC
CDE; and (3) that is certified by the Secretary of Treasury as            §38. If the general business credit is limited, the lesser of the
being a qualified CDE. A qualified equity investment means                amount equal to total disaster relief credits that are
stock (other than nonqualified preferred stock) in a                      components of the general business credit or the general
corporation or a capital interest in a partnership that is                business credit will be allowed as disaster relief credits
acquired directly from a CDE for cash, and includes an                    granted for the Hurricane Katrina presidential disaster areas
investment of a subsequent purchaser if such investment was               or Hurricane Rita Disaster presidential disaster areas.
a qualified equity investment in the hands of the prior holder.             AUTHORITY NOTE: Adopted in accordance with R.S.
Substantially all of the investment proceeds must be used by              47:1511, R.S. 47:287.85(C) (2), R.S. 47:293(3) and R.S.
the CDE to make qualified low-income community                            47.287.785
investments. For this purpose, qualified low-income                         HISTORICAL NOTE: Promulgated by the Department of
community investments include: (1) capital or equity                      Revenue, Policy Services Division, LR 32:642 (April 2006),
investments in, or loans to, qualified active low-income                  amended LR 32:1907 (October 2006).
community businesses; (2) certain financial counseling and                       Chapter 9. Hazardous Waste Tax
other services to businesses and residents in low-income
communities; (3) the purchase from another CDE of any                     §901.      Definitions
loan made by such entity that is a qualified low-income
                                                                            A. The terms used in this Chapter shall be defined as
community investment; or (4) an equity investment in, or
                                                                          provided in R.S. 30:1054 and R.S. 30:1133, with R.S.
loan to, another CDE.
                                                                          30:1133 governing in any case of conflict between them,
      iii.    A "low-income community" is a population                    unless another definition is specifically provided or a
census tract with either (1) a poverty rate of at least 20                definition is specifically modified.
percent or (2) median family income which does not exceed

                                                                    33           Louisiana Administrative Code            December 2011
                                                  REVENUE AND TAXATION

  B. The words defined in R.S. 47:821(B) have the                    100 percent - 30 percent = 70 percent and the taxable dry-
meaning ascribed to them in that Section unless the context          weight of the waste is 70 percent of the total weight of the
clearly indicates otherwise.                                         waste.
     Disposal―the discharge, deposit, injection, dumping,                   b. When the waste is to be disposed of by
spilling, leaking, or placing of any hazardous waste as              underground injection and the 1 percent inorganic solids
defined in this Chapter, into or on any land or water in a           limitation applies, the dry-weight conversion factor shall be
hazardous waste disposal facility within Louisiana in such a         100 percent less the percentage of water content and less the
manner that the hazardous waste so disposed becomes part             percentage of inorganic solids in excess of 1 percent. For
of the surrounding or underlying land. Storage in excess of          example, if the chemical analysis determines that the
90 days shall be presumed to constitute disposal for purposes        waste is 30 percent water and 5 percent inorganic solids, the
of collection of the tax but shall not subject those wastes          dry-weight conversion factor is 100 percent less the
stored in excess of 90 days to additional taxation when              30 percent water content and less the 4 percent by which
ultimately disposed.                                                 the percentage of inorganic solids exceeds 1 percent, or
                                                                     (100 percent - 30 percent) - 4 percent = 66 percent. In this
       a. Hazardous Waste Disposal Facility―any facility
                                                                     example the taxable dry-weight would be 66 percent of the
or location where any processing or deposition of hazardous
                                                                     total weight of the waste.
waste occurs or is contained. This includes any location
where waste is disposed in violation of law or the                          c. Any method which has received prior approval
regulations of the Louisiana Department of Environmental             from the Department of Environmental Quality may be used
Quality.                                                             to determine the dry-weight of the hazardous waste.
        b. Hazardous Waste Treatment Facility―any                         Hazardous Waste―a substance identified or listed as a
facility or location where any method, technique, or process,        hazardous waste in the Louisiana Hazardous Waste
including neutralization or incineration, designed to change         Regulations of the Department of Environmental Quality in
the physical or chemical character or composition of any             effect on July 1, 1984, except that the term hazardous waste
hazardous waste so as to neutralize such waste or so as to           shall not include special waste as defined in R.S. 47:821.
render such waste nonhazardous, safer for transport,                 The regulations of the Department of Environmental Quality
amenable for recovery, amenable for storage, or reduced in           in effect on July 1, 1984, provide that to be a hazardous
volume. Such term includes any activity or processing                waste, a substance must first be a "waste" and define waste
designed to change the physical form or chemical                     to be "any material for which no use or reuse is intended and
composition of hazardous waste so as to render it                    which is to be discarded." Any substance for which the
nonhazardous; however, a "treatment facility" shall be               generator has further use is not considered a waste or
treated in the same manner as a "disposal facility" if it            hazardous waste. Examples of further use include use as a
receives hazardous waste from outside companies or stores            feed stream to processes from which usable substances are
the hazardous waste in excess of 90 days before the waste is         extracted, use as a fuel-producing energy, and sale of the
treated to render it nonhazardous.                                   substance.
                                                                       AUTHORITY NOTE: Promulgated in accordance with R.S.
       c. Storage―the containment of hazardous waste on              47:821.
a temporary basis in such a manner as not to constitute                HISTORICAL NOTE: Promulgated by the Department of
disposal of such hazardous waste. In order to comply with            Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
this definition, the waste in storage cannot become part of          1987).
the surrounding or underlying land or water.                         §903. Standard Dry-Weight Conversion Factors
     Dry-Weight Ton―a ton of hazardous waste excluding                  A. In order to minimize instances in which the cost to the
the weight of the water, and for underground injection shall         taxpayer of testing waste to determine the actual dry-weight
include no more than 1 percent of the inorganic solids               exceeds the tax liability, and to minimize instances in which
contained in the hazardous waste. Calculation of the taxable         the cost to the state of administering and enforcing the tax
dry-weight tons of a waste is accomplished through the use           exceeds the tax revenue, the secretary herein establishes
of a dry-weight conversion factor which is determined with           standard dry-weight conversion factors and guidelines for
reference to a chemical analysis, or, when appropriate, by           the use of these factors. The standard conversion factors can
reference to the standard dry-weight conversion factors              be used only in instances which meet all conditions
established by §903. The chemical analysis shall determine           established by the guidelines.
the percentage of water content of the waste and, when the              B. The guidelines for use of the standard conversion
waste is to be disposed by underground injection and the             factors are:
1-percent inorganic solids limitation applies, the percentage
                                                                          1. any generator may use the standard conversion
of inorganic solids content.
                                                                     factors in computing the taxable dry-weight of a hazardous
      a. When the 1 percent inorganic solids limitation              waste when the wet weight is 40 tons or less for the taxable
does not apply, the dry-weight conversion factor shall be            quarter;
100 percent less the percentage of water content. For                     2. when a taxpayer files a consolidated return
example, if the chemical analysis determines that the waste          covering several generation sites, the 40-ton limit is to be
is 30 percent water, the dry-weight conversion factor is             applied on a per-site basis;

Louisiana Administrative Code               December 2011       34
                                                                      Title 61, Part I

     3. the 40-ton limit applies to each waste. The total                            C. A generator who has been classified as a small-
tons of all wastes which are substantially the same must be                       quantity generator by the Department of Environmental
combined in determining if the 40-ton limit is exceeded. A                        Quality and has received written permission from the
taxpayer may qualify to use the standard factors in                               Department of Environmental Quality to store hazardous
computing the dry-weight of some wastes on a return while                         waste in excess of 90 days may elect to report the taxable
being required to use the actual conversion factor for other                      storage in excess of 90 days in the quarter in which the
wastes on the same return;                                                        waste is removed from storage, rather than the quarter in
     4. taxpayers are not required to use the standard                            which the storage period actually exceeded 90 days. This
conversion factors. The actual conversion factor or the wet                       method of reporting may be used only for those wastes
weight may be used; however, if the standard conversion                           authorized by the Department of Environmental Quality to
factors are used as a deliberate means to avoid paying a                          be stored in excess of 90 days. If this method of reporting is
higher amount of tax, then the use of the standard conversion                     elected, the tax shall be due at the rate established for
factors will be disallowed and the actual dry-weight                              taxable disposal at a site other than the site at which the
determination will be used.                                                       waste is generated, regardless of how or where the waste is
                                                                                  ultimately disposed of.
   C. When the use of the standard conversion factors is
allowed, and the taxpayer elects to use them, the allowable                         AUTHORITY NOTE: Promulgated in accordance with R.S.
factor is based upon the method of disposal. Listed below                         47:822.
are the disposal methods for which standard conversion                              HISTORICAL NOTE: Promulgated by the Department of
                                                                                  Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
factors have been established, and their associated factors.
                                                                                  1987).
     Landfill          0.75, i.e., total weight x 0.75 = dry weight
                                                                                  §907.      Rate of Tax
     Landfarm          0.25, i.e., total weight x 0.25 = dry weight
     Impoundments      0.05, i.e., total weight x 0.05 = dry weight                 A. The tax is levied at the rate of $5 per dry-weight ton
     Injection wells   0.02, i.e., total weight x 0.02 = dry weight               of hazardous waste disposed or stored in excess of 90 days
  AUTHORITY NOTE: Promulgated in accordance with R.S.                             for eventual disposal on or at the site upon which the
47.821.                                                                           generator's act or process produced the hazardous waste, and
  HISTORICAL NOTE: Promulgated by the Department of                               at the rate of $10 per dry-weight ton of hazardous waste
Revenue and Taxation, Excise Taxes Section, LR 13:105 (February                   disposed or stored in excess of 90 days for eventual disposal
1987).                                                                            on or at a site other than the site upon which the generator's
§905.    Imposition of Tax                                                        act or process produced the hazardous waste.
   A. The tax is imposed upon the disposal, as defined by                           AUTHORITY NOTE: Promulgated in accordance with R.S.
R.S. 47:821, of any hazardous waste and on hazardous waste                        47:823.
stored for more than 90 days for the purpose of eventual                            HISTORICAL NOTE: Promulgated by the Department of
incineration at sea. R.S. 47:821 defines disposal to include                      Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
storage in excess of 90 days; therefore, the tax is imposed on                    1987).
any storage in excess of 90 days, not only on storage for the                     §909.      Direct Payment by Generator
purpose of eventual incineration at sea.                                             A. The tax imposed by R.S. 47:822 shall be collectible
   B. A disposer or generator who voluntarily removes                             from and shall be paid by the generator of the hazardous
hazardous waste from an inactive or abandoned site shall not                      waste directly to the secretary if the generator disposes of his
be subjected to imposition of this tax when the hazardous                         own waste on or at his own disposal site. In addition, R.S.
waste is disposed of again. Disposers receiving such waste                        47:826(A) provides that the secretary shall have the
are required to charge the tax on waste received by them and                      authority to collect the tax from the generator if the disposer
disposers or generators voluntarily removing waste from an                        fails to collect the tax; and in support of this, the generator is
inactive or abandoned site are required to pay the tax to the                     required to pay directly to the secretary any tax due not
disposer; however, the disposer or generator voluntarily                          collected by a disposer.
removing the waste may exclude the exempt amounts from
                                                                                    AUTHORITY NOTE: Promulgated in accordance with R.S.
the calculation of the tax on his return while taking credit on                   47:825.
his return for the tax paid to the disposer. Whenever a                             HISTORICAL NOTE: Promulgated by the Department of
generator or disposer excludes waste from the tax                                 Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
calculation under this provision, he shall attach to his return                   1987).
a signed statement declaring that he is entitled to the                           §911.      Collection by Disposer; Liability of Disposer
exemption and a schedule detailing by manifest number the
total gross tons excluded, the type of waste, and the disposer                      A. R.S. 47:826(A) provides that when the generator does
who received the waste, or other appropriate records                              not dispose of his own hazardous waste on or at his own
acceptable to the secretary. Credit claimed under this                            disposal site, the disposer shall collect the tax from the
provision shall be disallowed if it is determined that the                        generator at the time the disposer receives the hazardous
removal or redisposal of the waste was in violation of the                        waste and shall remit the tax so collected to the secretary.
laws, rules, or regulations administered by the Department                          B. The disposer is required by R.S. 47:826(B) to state
of Environmental Quality or that the waste was not                                and collect the tax separately from any other fee, charge, or
voluntarily removed from an inactive or abandoned.                                other price charged to the generator, and is required to

                                                                            35           Louisiana Administrative Code             December 2011
                                                    REVENUE AND TAXATION

provide the generator with documentation of the amount of               proper approval or any disposer found not charging the tax
tax collected. The disposer shall not advertise or hold out to          may be assessed the fine outlined in R.S. 47:827.
the generator that he will relieve the generator from the                 AUTHORITY NOTE: Promulgated in accordance with R.S.
payment of all or any part of the tax and the generator shall           47:826.
not be deemed to have paid the tax unless he receives a                   HISTORICAL NOTE: Promulgated by the Department of
document from the disposer separately stating the amount of             Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
the tax that has been paid. The tax charged by the disposer             1987).
shall be a debt from the generator to the disposer, until paid,         §915.    Returns and Payment
and shall be recoverable at law in the same manner as other
debts.                                                                     A. The tax due for each quarter shall be remitted to the
                                                                        secretary, by the person responsible for remitting the tax, on
  C. If the disposer neglects, fails, or refuses to collect or          or before the twentieth day of the subsequent quarter. All
remit the tax, he shall be liable and shall pay the tax himself.        generators and disposers doing business in Louisiana are
However, the secretary shall have the authority to collect the          required to file a tax return quarterly, unless otherwise
tax from the generator if the disposer fails to collect the tax.        provided, on forms prescribed by the secretary. Forms are
  AUTHORITY NOTE: Promulgated in accordance with R.S.                   available from the secretary; and although forms are usually
47:826.                                                                 mailed to each taxpayer, failure to receive a form will not
  HISTORICAL NOTE: Promulgated by the Department of
                                                                        relieve the taxpayer of the necessity of filing and remitting
Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
1987).                                                                  the tax currently due.
§913. Exempt Disposal by Disposer                                         B. Corporations that violate the provisions of R.S.
                                                                        47:827 shall be fined an amount not to exceed $100,000.
   A. R.S. 47:826(C) provides in part that if hazardous                 Individuals who violate the provisions of R.S. 47:827 shall
waste is received by a disposer and it is stored for 90 days or         be fined an amount not to exceed $10,000, or imprisoned for
less and then not disposed of in a taxable manner, then the
                                                                        not more than one year, or both.
generator shall be entitled to a refund from the secretary for
the amount of any taxes collected from the generator for that              C. When any taxpayer fails to pay any tax, penalty, and
hazardous waste.                                                        interest assessed, as provided in this Chapter, the secretary
                                                                        of the Department of Revenue and Taxation may proceed to
   B. Whenever waste is received by a disposer from a
                                                                        enforce the collection thereof by distraint and sale under the
generator and stored for 90 days or less and then disposed of
                                                                        provisions of R.S. 47:1570-1573.
in a tax-free manner, the disposer must certify this to the
generator. The certification must identify the waste, the                 AUTHORITY NOTE: Promulgated in accordance with R.S.
amount of waste, the invoice on which the tax was charged,              47:827.
                                                                          HISTORICAL NOTE: Promulgated by the Department of
and the amount of tax collected. The generator may take
                                                                        Revenue and Taxation, Excise Taxes Section, LR 13:105 (February
credit on his return for the amount of tax paid on the                  1987).
certification exempt disposals, provided copies of
certifications are attached to the return.                              §917. Records Requirements
   C. When hazardous waste is to be disposed of in a tax-                  A. Every person required to pay, collect, or remit the tax
free manner, the Secretary of the Department of Revenue                 imposed under this Chapter shall keep a permanent record of
and Taxation may allow the disposer to post a surety bond,              all production, handling, storage, disposal, shipment, and
or other such financial assurances acceptable to the                    receipt of hazardous waste by him in sufficient detail to be
secretary, in lieu of payment of the tax. The minimum                   of value in determining the correct tax liability under this
amount of the surety bond or other financial assurances shall           Chapter. These records must be kept whether or not the
not be less than the amount of the average quarterly tax                person believes the tax imposed by this Chapter is
liability that would have been due had no bond or financial             applicable.
assurance been pledged. If this alternate method is allowed,              B. Whenever the dry-weight of a waste is used as the
then both the generator and the disposer of the hazardous               basis for computing the tax on a return, full documentation
waste must attach a schedule to their quarterly tax reports,            of the facts and methodology used in calculating the dry-
detailing all shipments and/or disposals of hazardous waste             weight must be maintained. This documentation includes,
on which no tax was paid.                                               but is not limited to, testing procedures followed, test results
   D. Additionally, the disposer of the hazardous waste                 obtained, assumptions made, and the basis for assumptions
must enter into an agreement with the Department of                     made.
Revenue and Taxation guaranteeing payment of the                          C. Where required records are voluminous, they must be
hazardous-waste tax in the event that the hazardous waste               kept in chronological order or in some other systematic order
was not disposed of:                                                    compatible with the taxpayer's regular bookkeeping system
     1. within 90 days; or                                              which will enable the secretary to verify the accuracy of
     2. in a tax-free manner.                                           information contained in tax returns.
   E. Any disposer wishing to use this alternate method                   D. Records kept on punched cards, magnetic tape, or
must submit a proposal to this department, in writing, for              other mechanical or electronic record-keeping devices are
approval. Any disposer employing this method without                    permissible provided the taxpayer makes available all

Louisiana Administrative Code                 December 2011        36
                                                            Title 61, Part I

necessary codes and equipment to enable the secretary to                §1122. Taxes Not Deductible
audit such records, or provides the secretary with written
                                                                          A. General. R.S. 47:287.83 provides that federal income
transcripts of those parts of the records which the secretary
                                                                        tax levied on net income upon which no Louisiana income
wishes to examine.
                                                                        tax has been incurred, or upon which, for any reason
   E. The books and records must contain complete                       whatsoever, no Louisiana income tax will be paid, is not
information pertaining to both taxable and non-taxable items            deductible.
which are the subject of taxes imposed herein, and must be
retained until the tax period to which they relate has                     B. Federal Alternative Minimum Tax. Federal alternative
prescribed. Records required by this Section must be                    minimum tax attributable to tax preference items such as,
available at all times during the regular business hours of the         but not limited to, accelerated depreciation, depletion, and
day for inspection by the secretary or duly authorized agents           intangible drilling and development cost is not deductible.
of the secretary.                                                       Federal alternative minimum taxable net income from
                                                                        sources other than tax preference items is deductible to the
  F. For the purpose of computing, collecting, or auditing              extent that it is applicable to regular federal taxable income.
the tax imposed by this Chapter, the secretary shall have
access to all manifests and records which are required by the              C. Net Operating Loss Carryback. Federal income tax
Department of Environmental Quality.                                    deducted from Louisiana net income in taxable periods to
  AUTHORITY NOTE: Promulgated in accordance with R.S.                   which a net operating loss is carried back shall be computed
47:831.                                                                 to determine the amount of federal income tax attributable to
  HISTORICAL NOTE: Promulgated by the Department of                     net income which is taxed by the federal but which is not
Revenue and Taxation, Excise Taxes Section, LR 13:105 (February         taxed by Louisiana as a result of a net operating loss
1987).                                                                  carryback. Federal income tax attributable to net income
                                                                        which is not taxed by Louisiana as a result of a net operating
  Chapter 11. Corporation Income Tax                                    loss carryback is the excess of allowable federal income tax
§1114. Modifications of Federal Gross Income                            deducted from Louisiana net income before the net operating
  A. In order to calculate Louisiana gross income, R.S.                 loss carryback over the allowable deduction after the net
47:287.71 requires modifications be made to federal gross               operating loss carryback. The federal income tax attributable
income. R.S. 47:287.71(B)(7) provides that exclusions from              to net income which is not taxed by Louisiana shall be
Subpart F must be taken into account when computing                     treated as a reduction to the net operating loss deduction. If
Louisiana gross income. Included in the exclusions from                 the amount of the federal income tax attributable to the net
gross income required by R.S. 47:287.71(B)(7) are those                 income which is not taxed by Louisiana exceeds the
modifications provided for in R.S. 47:287.738(C) through                Louisiana net operating loss deduction, such excess shall be
(F).                                                                    treated as income in the year of the transaction that gave rise
                                                                        to the excess. These principles are illustrated in the
  AUTHORITY NOTE: Promulgated in accordance with R.S.                   following examples.
47:287.71, R.S. 47:287.785, and R.S. 47:1511.
  HISTORICAL NOTE: Promulgated by the Department of
Revenue, Policy Services Division, LR 32:261 (February 2006).




                                                                  37           Louisiana Administrative Code           December 2011
                                                                 REVENUE AND TAXATION

      D. Examples
                                                                                  Example 1
              The ABC Corporation does not include its net income in a consolidated federal income return as provided by Section 1501 of the Internal Revenue
          Code. ABC files state and federal income tax returns on a calendar year basis. ABC Corporation's net income and other financial information used to
          file state and federal income tax returns for the four-year period ending December 31, 1987, include the following:

                               Taxable Periods                                             1984                  1985                  1986                     1987
Federal net income or (loss)                                                               $ 2,000,000           $ 4,000,000           $ 5,000,000          $       600,000
Louisiana net income or (loss)                                                               1,200,000             1,800,000             3,000,000              (1,000,000)
Federal income tax                                                                             800,000             1,600,000             2,000,000                  240,000
Federal income tax deducted from Louisiana net income                                          467,280               706,240             1,171,200                       -0-
State income tax deducted from federal net income but not Louisiana net income                  57,500                86,000               144,000                       -0-
Income tax apportionment ratio                                                                    55%                   40%                   50%                      50%
Louisiana taxable income                                                                       732,720             1,093,760             1,828,800                       -0-

             ABC Corporation elects to carry their 1987 Louisiana net operating loss back to 1984 pursuant to R.S. 47:287.86. Federal income tax attributable
          to net income which is not taxed by Louisiana as a result of the net operating loss carryback is computed as follows:

        1. Louisiana net income, 1984                                                                                                                 $1,200,000
    2.2 2. Less: State income tax deduction allowed by the federal but not Louisiana                                                  $57,500
            Multiplied by the income tax apportionment ratio                                                                             55%
            Balance                                                                                                                   $31,625
            Louisiana net operating loss, 1987                                                                                     $1,000,000
            Adjustment                                                                                                                                $1,031,625
         3. Louisiana net income after deducting the net operating loss carryback (line 1 minus line 2)                                                $ 168,375
         4. Federal net income, 1984                                                                                                                  $2,000,000
         5. Ratio (line 3 divided by line 4)                                                                                                            8.4188%
         6. Federal income tax, 1984                                                                                                                   $ 800,000
         7. Allowable federal income tax deduction after the Louisiana net operating loss carryback
            (line 6 multiplied by line 5)                                                                                                               $ 67,350
         8. Federal income tax deducted from Louisiana net income before the net operating loss carryback                                              $ 467,280
         9. Federal income tax attributable to net income which is not taxed by Louisiana (line 8 minus line 7)                                        $ 399,930
        10. Louisiana net operating loss before deduction for federal income tax attributable to net income which is not
            taxed by Louisiana                                                                                                                        $1,000,000
        11. Federal income tax attributable to net income which is not taxed by Louisiana (from line 9)                                                $ 399,930
        12. Louisiana net operating loss after deduction for federal income tax attributable to net income which is not
            taxed by Louisiana (line 10 minus line 11)                                                                                                 $ 600,070

                                                                                 Example 2
             Assume the same facts in Example 1 except that the ABC Corporation sustained a $2,000,000 federal net operating loss in 1987 and elects to carry
          the federal loss back to 1984. Federal income tax after the net operating loss carryback is zero.

       1. Louisiana net income, 1984                                                                                                                  $1,200,000
        2. Less: State income tax deduction allowed by the federal but not Louisiana                                              $57,500
            Multiplied by the income tax apportionment ratio                                                                         55%
            Balance                                                                                                               $31,625
            Louisiana net operating loss, 1987                                                                                 $1,000,000
            Adjustment                                                                                                                                 $1,031,625
        3. Louisiana net income after deducting the net operating loss carryback (line 1 minus line 2)                                                  $ 168,375
        4. Federal net income, 1984                                                                                                                    $2,000,000
        5. Federal net operating loss carryback from 1987                                                                                            ($2,000,000)
        6. Federal net income after federal net operating loss carryback from 1987 (line 4 minus line 5)                                                       -0-
        7. Ratio (line 3 divided by line 6)                                                                                                                    -0-
        8. Federal income tax after the federal net operating loss carryback                                                                                   -0-
        9. Allowable federal income tax deduction after the net operating loss carryback
           (line 8 multiplied by line 7)                                                                                                                      -0-
       10. Federal income tax deducted from Louisiana net income before the net operating loss carryback                                               $ 467,280
       11. Federal income tax attributable to net income which is not taxed by Louisiana
           (line 10 minus line 9)                                                                                                                      $ 467,280
       12. Louisiana net operating loss before deduction for federal income tax attributable to net income which is
           not taxed by Louisiana                                                                                                                     $1,000,000
       13. Federal income tax attributable to net income which is not taxed by Louisiana (from line 11)                                                $ 467,280
       14. Louisiana net operating loss after deduction for federal income tax attributable to net income which is
           not taxed by Louisiana (line 12 minus line 13)                                                                                              $ 532,720




   Louisiana Administrative Code                          December 2011            38
                                                                      Title 61, Part I

                                                                            Example 3
        Assume the same facts in Examples 1 and 2 except that the Louisiana and federal net operating losses in 1987 are $350,000 and $1,800,000
     respectively. Federal income tax after the net operating loss carryback is $80,000.

   1. Louisiana net income, 1984                                                                                                       $1,200,000
    2. Less: State income tax deduction allowed by the federal but not Louisiana                                     $57,500
        Multiplied by the income tax apportionment ratio                                                                55%
        Balance                                                                                                      $31,625
        Louisiana net operating loss, 1987                                                                          $350,000
        Adjustment                                                                                                                       $ 381,625
    3. Louisiana net income after deducting the net operating loss carryback (line 1 minus line 2)                                       $ 818,375
    4. Federal net income, 1984                                                                                                         $2,000,000
    5. Federal net operating loss carryback from 1987                                                                                 ($1,800,000)
    6. Federal net income after federal net operating loss carryback from 1987 (line 4 minus line 5)                                     $ 200,000
    7. Ratio (line 3 divided by line 6)                                                                                                      100%
    8. Federal income tax after the federal net operating loss carryback                                                                  $ 80,000
    9. Allowable federal income tax deduction after the net operating loss carryback (line 8 times line 7)                                $ 80,000
   10. Federal income tax deducted from Louisiana net income before the net operating loss carryback                                     $ 467,280
   11. Federal income tax attributable to net income which is not taxed by Louisiana, 1984
       (line 10 minus line 9)                                                                                                           $ 387,280
   12. Louisiana net operating loss before deduction for federal income tax attributable to net income which is
       not taxed by Louisiana                                                                                                           $ 350,000
   13. Federal income tax attributable to net income which is not taxed by Louisiana (from line 11)                                     $ 387,280
   14. Louisiana net operating loss after deduction for the amount of federal income tax attributable to net
       income which is not taxed by Louisiana (line 12 minus line 13)                                                                          -0-
   15. Additional Louisiana taxable income for 1987 due to excess of federal income tax attributable to net
       income which is not taxed by Louisiana over the Louisiana net operating loss (line 13 minus line 12)                               $ 37,280


   E. Definitions. For the purposes of this Section,                                 net income which is taxed at alternative capital gain rates
alternative minimum tax, regular federal income tax,                                 and the denominator of which is federal net income which is
alternative tax on capital gains, and regular tax on ordinary                        taxed at alternative capital gain rates.
net income are defined as provided in §1123.F.
                                                                                          2. The deductible portion of federal income tax
  AUTHORITY NOTE: Promulgated in accordance with R.S.                                attributable to Louisiana apportionable and allocable net
47:287.83, R.S. 47:1511.                                                             income, less adjustment for the net operating loss deduction
  HISTORICAL NOTE: Promulgated by the Department of                                  if applicable, which is taxed at ordinary rates, is the result
Revenue and Taxation, Income Tax Section, LR 14:96 (February                         obtained by multiplying the federal income tax which is
1988), repromulgated by the Department of Revenue, Policy
Services Division, LR 30:470 (March 2004), amended by the
                                                                                     calculated at ordinary rates by a fraction, the numerator of
Department of Revenue, Policy Services Division, LR 33:295                           which is Louisiana apportionable and allocable net income,
(February 2007).                                                                     less adjustment for the net operating loss deduction if
                                                                                     applicable, which is taxed at ordinary rates and the
§1123. Federal Income Tax Deduction
                                                                                     denominator of which is federal net income which is taxed at
   A. General. R.S. 47:287.85(C) permits corporations to                             ordinary rates.
claim as a deduction in computing net income that portion of
                                                                                       C. Numerator. The numerator to be used in §1123.B shall
the federal income tax levied with respect to the Louisiana
                                                                                     be determined as set forth in §1123.C.1 and 2.
net income, which is applicable to the year for which the
Louisiana return is filed, regardless of the method of                                    1. The numerator in the case of Louisiana net income
accounting utilized (cash, accrual, etc.). For determination of                      which is taxed by federal at alternative capital gain rates is
the deductible amount of federal alternative minimum tax                             the sum of:
attributable to Louisiana net income, refer to §1122. When a
                                                                                            a. the amount of net apportionable and net allocable
corporation includes its net income in a consolidated federal
                                                                                     income, subject to tax at alternative capital gain rates for
income tax return, total federal income tax for the purpose of
                                                                                     federal income tax purposes, apportioned and allocated to
this Section shall be the amount determined pursuant to
                                                                                     Louisiana;
§1123.E.
                                                                                            b. any compensating item of income attributable to
  B. Computations. The deductible portion of the federal
                                                                                     Louisiana and which is taxed by federal at alternative capital
income tax, the tax attributable to Louisiana income, is the
                                                                                     gain rates but which is not taxed by Louisiana; and
sum of the amounts determined in §1123.B.1 and 2.
                                                                                            c. any compensating loss item of income, of a
     1. The deductible portion of federal income tax
                                                                                     character which would be allowable by federal in arriving at
attributable to Louisiana apportionable and allocable net
                                                                                     income which is taxed at alternative capital gain rates,
income which is taxed at alternative capital gain rates is the
                                                                                     attributed to and allowed by Louisiana but not allowed by
result obtained by multiplying the federal income tax which
                                                                                     federal, reduced by the sum of:
is calculated at alternative capital gain rates by a fraction, the
numerator of which is Louisiana apportionable and allocable

                                                                              39           Louisiana Administrative Code            December 2011
                                                            REVENUE AND TAXATION

         i.  any compensating item of income, of a                                    i.  any compensating item of gross income, which
character which would be subject to tax by federal at                       would be subject to tax by federal at ordinary rates,
alternative capital gain rates, attributed to and taxed by                  attributed to and taxed by Louisiana but which is not taxed
Louisiana but which is not taxed by federal;                                by federal;
        ii.   any compensating loss item of income                                   ii.  any compensating item of deduction
attributable to Louisiana and allowed by federal in arriving                attributable to Louisiana and allowed by federal in arriving
at income which is taxed at alternative capital gain rates but              at income which is taxed at ordinary rates but not allowed by
not allowed by Louisiana; and                                               Louisiana;
       iii.   any excess of the sum of:                                             iii.  any excess of the sum of:
            (a). any noncompensating loss item of income                                (a). any noncompensating item of deduction
attributable to Louisiana and allowed by federal in arriving                attributable to Louisiana and allowed by federal in arriving
at income which is taxed at alternative capital gain rates, but             at income which is taxed at ordinary rates, but not allowed
not allowed by Louisiana; and                                               by Louisiana, and not attributable to any item of gross
                                                                            income taxable by federal but not by Louisiana; and
            (b). any noncompensating item of income, of a
character which would be subject to tax by federal at                                    (b). any noncompensating item of gross income,
alternative capital gain rates, attributed to and taxed by                  of a character which would be subject to tax at ordinary
Louisiana but which is not taxed by federal; over                           rates, attributed to and taxed by Louisiana but which is not
                                                                            taxed by federal; over
            (c). any noncompensating loss item of income,
of a character which would be allowable in arriving at                                 (c) any noncompensating item of deduction,
income which is taxed at alternative capital gain rates by                  which would be allowable by federal in arriving at income
federal, attributed to and allowed by Louisiana but not                     which is taxed at ordinary rates, attributed to and allowed by
allowed by federal.                                                         Louisiana but not allowed by federal, and not attributable to
    2. The numerator in the case of Louisiana net income                    any item of gross income taxable by Louisiana but which is
which is taxed by federal at ordinary rates is the sum of:                  not by federal.
       a. the amount of net apportionable and net allocable                    D. Example. The following example illustrates these
income, less adjustment for the net operating loss deduction                principles. Facts: The income reported and deductions
if applicable, subject to tax at ordinary rates for federal                 claimed by ABC, Inc., a Delaware corporation having its
income tax purposes, apportioned and allocated to                           commercial domicile in Louisiana and having several places
Louisiana;                                                                  of business outside this state, are reflected below. The
                                                                            difference between the federal depreciation deduction and
       b. any compensating item of gross income                             the depreciation deducted in arriving at total net income is a
attributable to Louisiana and taxed by federal at ordinary                  compensating item. One-half of the total royalty income,
rates but which is not taxed by Louisiana; and                              depletion, and other expenses related thereto are attributable
       c. any compensating item of deduction, of a                          to a Louisiana oil property. There are $15,000 in expenses
character which would be allowable by federal in arriving at                attributable to the royalty income in addition to the depletion
income which is taxed at ordinary rates, attributed to and                  deduction. The portion of net income from royalties
allowed by Louisiana but not allowed by federal, and not                    allocable to Louisiana is $25,000. Of the total profit from the
attributable to any item of gross income taxable by                         sale of capital assets, $25,000 is allocable to Louisiana.
Louisiana but not by federal; reduced by the sum of:

                                                                                                          -------- RETURNS --------
                    Items                                                                               Federal          Louisiana
       Income
          Gross profit from sales                                                                   $     1,400,000    $     1,400,000
          Royalties                                                                                         100,000            100,000
          Interest—Bond, State of Mississippi                                                                    -0-             5,000
          Interest—Bond, U.S. Government                                                                      5,000                 -0-
          Long-term gain from sale of capital assets                                                        100,000            100,000
          Total Income                                                                              $     1,605,000    $     1,605,000
       Deductions
          Louisiana income tax                                                                               10,000                 -0-
          Officers' compensation                                                                             50,000             50,000
          Repairs                                                                                            10,000             10,000
          Interest                                                                                           15,000             15,000
          Bad debts                                                                                           5,000              5,000
          Depletion                                                                                          27,500             35,000
          Depreciation                                                                                       25,000             35,000
          Contributions                                                                                       5,000              5,000
          Other deductions                                                                                  350,000            350,000
             Total deductions                                                                       $       497,500    $       505,000
       Net Income                                                                                   $     1,107,500    $     1,100,000



Louisiana Administrative Code                          December 2011   40
                                                                     Title 61, Part I
           Federal income tax—
           Ordinary income                                                                          $518,400
           Capital gains                                                                              25,000
           Total                                                                                    $543,400


      1. The taxpayer files on the apportionment basis and the following computation discloses the net allocable and net
         apportionable income derived from Louisiana sources.

         Total net income                                                                                                          $       1,100,000
         Deduct allocable income
           Profit from sale of capital assets                                                              $             100,000
           Interest—Bonds, State of Mississippi                                                                            5,000
           Net royalty income                                                                                             50,000   $        155,000
         Net income for apportionment                                                                                              $        945,000
         Net income apportioned to Louisiana (20% of $945,000)                                                                     $        189,000
         Add Louisiana allocable income
           Interest                                                                                        $               5,000
           Profit from sale of capital assets                                                                             25,000
           Royalty income                                                                                                 25,000             55,000
         Total Louisiana apportionable and allocable income                                                                        $        244,000


    2.    Computations

                                                                                                  Ordinary Rates               Alternative Capital
                                                                                                                                  Gains Rates
     Net income apportioned and allocated to Louisiana                                               $     219,000                    $      25,000
     Add: Compensating items of income attributable to
                                                                                                                   -0-                              -0-
              Louisiana and taxed by federal but which is not taxed by Louisiana
     Compensating items of deduction attributed to Louisiana and allowed by
     Louisiana but not allowed by federal depreciation (20% of $10,000)                                      2,000                                  -0-
     TOTAL:                                                                                          $     221,000                     $        25,000
     Deduct: Compensating items of income attributed to and taxed by Louisiana
              but not taxed by federal                                                                             -0-
     Compensating items of deduction attributable to Louisiana and allowed by
     federal but not allowed by Louisiana                                                                       -0-                                 -0-
     TOTAL:                                                                                          $     221,000                     $        25,000
     Excess of the sum of noncompensating items of deduction attributable to
     Louisiana and allowed by federal but not allowed by Louisiana
     Louisiana income tax (20% of $10,000)*                                        $    2,000
     Noncompensating items of gross income attributed to and taxed by Louisiana
     but which is not taxed by federal
     Bond interest—State of Mississippi                                                 5,000
     TOTAL                                                                         $    7,000
     Over
     Noncompensating items of deduction attributed to and allowed by Louisiana
     but not allowed by federal depletion on oil royalties                         $    3,750
     Excess                                                                                          $       3,250                                  -0-
     Louisiana net income which is taxed by federal                                                  $     217,750                     $        25,000
     Federal net income                                                                              $   1,007,500                     $       100,000
     Ratio                                                                                                 21.61%                              25.00%
     Federal income tax liability                                                                    $     518,400                     $        25,000
     Deductible federal income tax
     21.61% of $518,400                                                                              $     112,026
     25% of $25,000                                                                                                                    $         6,250
                                                                                                                                               112,026
     Grand Total                                                                                                                       $       118,276
     *Where the separate method of reporting is used, the entire
      amount of Louisiana income tax deducted in the federal
      return is attributed to Louisiana under this item.
                                                                                   separate return basis and the denominator of which is regular
   E. Consolidated Returns. When a corporation includes
                                                                                   tax of all members of the group so computed; plus
its net income in a consolidated federal income tax return,
the portion of the consolidated federal income tax after                                2. the consolidated alternative tax on net capital gains
credits attributable to such corporation shall consist of the                      multiplied by the percentage determined by a fraction, the
sum of the amounts determined in §1123.E.1, 2, and 3:                              numerator of which is alternative tax on net capital gains of
                                                                                   each member of the consolidated group computed on a
    1. the consolidated regular tax on ordinary net income
                                                                                   separate return basis and the denominator of which is
multiplied by the percentage determined by a fraction, the
                                                                                   alternative tax on net capital gains of all members of the
numerator of which is regular tax on ordinary net income of
                                                                                   group so computed; plus
each member of the consolidated group computed on a


                                                                            41          Louisiana Administrative Code                      December 2011
                                                     REVENUE AND TAXATION

     3. the consolidated alternative minimum tax                       will exceed the amount to be taxed by federal and which can
multiplied by the percentage determined by a fraction, the             reasonably be expected to be fully taken into consideration
numerator of which is alternative minimum tax of each                  in determining the allowable federal income tax deduction in
member of the consolidated group computed on a separate                such future years for Louisiana income tax purposes;
return basis and the denominator of which is alternative
                                                                               ii.  the denominator shall be the total of all
minimum tax of all members of the group so computed.
                                                                       excesses of the amount of the item taxed by Louisiana over
  F.   Definitions                                                     the amount taxed by federal in each prior year and of all
                                                                       excesses of the amount of the item to be taxable by
     Alternative Minimum Tax―the excess of the federal
                                                                       Louisiana over the amount to be taxable by federal in each
tentative minimum tax after credits for the tax year, over the
                                                                       future year.
federal regular tax after credits for the taxable year.
                                                                           Income Taxed―income included in taxable income,
    Alternative Tax on Capital Gains―the net tax liability
                                                                       regardless of whether tax has been paid thereon.
imposed by Section 1201(a)(2) of the Internal Revenue Code
on net capital gains, less credits.                                         Item of Deduction―each individual deduction rather
                                                                       than each category of deduction, and includes loss items of
     Compensating Item―any difference in any deduction or
                                                                       gross income. For example, the amount of depreciation on a
item of income for a particular year arising solely by reason
                                                                       particular property, as distinguished from the amount of
of the fact that the item is accounted for in different periods
                                                                       depreciation on all properties of the taxpayer, would be an
for federal and Louisiana income tax purposes. However, if a
                                                                       item of deduction. Similarly, the term item of income means
larger federal income tax deduction would be allowable were
                                                                       each amount of income rather than each category of income.
an item treated as a compensating item than would be
                                                                       The amount of a Louisiana item of income or deduction is
allowable were the item treated as a noncompensating item,
                                                                       the amount apportioned or allocated to Louisiana. Thus,
the item is a compensating item only to the extent that it is
                                                                       where a taxpayer has a 10 percent apportionment ratio and
equal to the result obtained by multiplying the difference in
                                                                       has an item of deduction of $10,000 allowed by Louisiana in
the item by a fraction determined as follows:
                                                                       arriving at apportionable net income but not allowed by
       a.   in the case of a deduction:                                federal, the amount of the Louisiana item is 10 percent of
                                                                       $10,000 or $1,000.
         i.   the numerator shall be the excess, if any, of the
amount of the item allowed by federal over the amount                      Noncompensating Item―any item of difference between
allowed by Louisiana in each prior year in which the federal           federal and Louisiana income or deductions for a particular
allowance exceeded the Louisiana allowance and which has               year other than a compensating item.
been taken into consideration fully in determining the
                                                                            Regular Federal Income Tax―the sum of the tax
allowable federal income tax deduction for Louisiana
                                                                       defined in regular tax on ordinary net income and
income tax purposes for such prior years, plus the excess, if
                                                                       alternative tax on capital gains.
any, of the amount of the item to be allowed by federal over
the amount to be allowed by Louisiana in each future year in                Regular Tax on Ordinary Net Income―the federal net
which the federal allowance will exceed the Louisiana                  tax liability imposed on net income after net income is
allowance and which reasonably can be expected to be taken             reduced by the amount of net capital gain subject to
into consideration in determining the allowable federal                alternative tax rates, less credits.
income tax deduction for Louisiana income tax purposes in
                                                                            Taken into Consideration Fully in Determining the
such future years;
                                                                       Allowable Federal Income Tax Deduction for Louisiana
       ii.   the denominator shall be the total of all                 Income Tax Purposes for Prior Years―as used in this
excesses of the amount of the item allowed by federal over             Section means fully used in reducing the amount of the
the amount of the item allowed by Louisiana in each prior              federal income tax deduction for such prior years. The
year and of all excesses of the amount of the item to be               purpose of this provision is to allow an adjustment for an
allowed by federal over the amount to be allowed by                    item which will increase the federal income tax deduction
Louisiana in each future year;                                         only to the extent that adjustments applicable to the item in
                                                                       prior years were used to decrease the federal income tax
       b.   in the case of an item of income:
                                                                       deduction. Similarly, the term to be fully taken into
        i.   the numerator shall be the excess, if any, of the         consideration in determining the allowable federal income
amount of the item taxed by Louisiana over the amount                  tax deduction in ... future years for Louisiana income tax
taxed by federal in each prior year in which the amount                purposes means to be used fully in reducing the amount of
taxed by Louisiana exceeded the amount taxed by federal                the federal income tax deduction for such future years.
and which has been fully taken into consideration in
                                                                         G. Special Rules
determining the allowable federal income tax deduction for
Louisiana income tax purposes for such prior years, plus the               1. The computations prescribed in §1123.B are subject
excess, if any, of the amount of the item to be taxed by               to the rules provided in R.S. 47:287.442. That is, the
Louisiana over the amount to be taxed by federal in each               computations cannot have the effect of attributing refunds of
future year in which the amount to be taxed by Louisiana               federal income tax which arose on account of conditions or


Louisiana Administrative Code                   December 2011     42
                                                            Title 61, Part I

transactions occurring after the close of the taxable year, to              2. The change in the election is made by filing an
any year other than that in which arose the transactions or             amended return for each tax year affected, paying any tax
conditions giving rise to the refund. Accordingly, appropriate          and interest due and showing any refunds due.
changes shall be made when necessary to attribute the refund
                                                                          C. When a change in election is made during an audit or
to the proper year.
                                                                        examination, the taxpayer shall submit to the auditor a
    2. Notwithstanding the definition provided in §1123.F               written notification of the change in election and provide any
noncompensating item and compensating item, deductions                  additional information the auditor may require.
which are declared as allowable in the computation of
                                                                          AUTHORITY NOTE: Promulgated in accordance with R.S.
Louisiana net income pursuant to R.S. 47:287.73(C)4 shall               47:287.86, R. S. 47:287.785 and R.S. 47:1511.
be treated as a compensating item of deduction for the                    HISTORICAL NOTE: Promulgated by the Department of
purpose of computing the amount of federal income tax                   Revenue, Policy Services Division, LR 30:2494 (November 2004).
deduction under §1123.C.
                                                                        §1125. Application of Net Operating Losses Carryover
     3. The federal income tax deduction determined under                      to Otherwise Closed Years
§1123 must take into account R.S. 47:287.83 which provides
                                                                          A. The Louisiana Department of Revenue will follow the
in part that no federal income tax deduction shall be allowed
                                                                        position of the Internal Revenue Service set out in Revenue
on net income upon which no Louisiana income tax has been
                                                                        Ruling 81-88 when determining whether a net operating loss
incurred, or upon which, for any reason whatsoever, no
                                                                        (NOL) carryback should be applied against the income
Louisiana income tax will be paid.
                                                                        claimed on the taxpayer’s return or the income that should
     4. If the tax of any member computed on a separate                 have been reported.
return basis under §1123.E.1, 2, and 3 is less than zero, then
                                                                          B. In determining the amount of an overpayment of
for the purposes of §1123.E, such member's separate return
                                                                        income tax from an NOL carryback that may be refunded or
tax shall be zero.
                                                                        credited:
     5. The secretary may adjust the consolidated federal
                                                                            1. the taxable income of the carryback year for which
income tax allocation formula prescribed in §1123.E when
                                                                        the prescriptive period has otherwise run should not be
in his opinion such action is necessary to obtain a reasonable
                                                                        reduced by the amount of an unclaimed deduction or by the
allocation and to clearly reflect Louisiana taxable income.
                                                                        amount of an item of income reported in error;
     6. The sum of the net consolidated federal income tax
                                                                            2. however, an adjustment should be taken into
attributed to all members of the consolidated group for the
                                                                        account if it would increase the income in the year to which
taxable period cannot exceed the amount of consolidated
                                                                        the net operating loss is carried back and the increase in
federal income tax paid to the U.S. government for the
                                                                        income should be applied as a setoff against the net
taxable period.
                                                                        operating loss carryback.
     7. When the alternative tax rate on net capital gains is
                                                                           C. Examples
the same as the regular tax rate on ordinary net income
reduced by net capital gains, consolidated regular tax on                    1. A calendar year 100 percent Louisiana corporate
ordinary net income and alternative tax on capital gains,               taxpayer has an NOL of $165,000 for Year 3. Its taxable
after credits, may be combined and then attributed to each              income before the federal income tax (FIT) deduction for
member of the consolidated group.                                       each of its two earlier years is as follows: Year 2-$150,000
                                                                        and Year 1-$100,000. On April 1, Year 6, taxpayer files a
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47.287.85.                                                              claim for refund for Year 1 (its first year of operation) and
  HISTORICAL NOTE: Promulgated by the Department of                     Year 2 due to the Year 3 NOL carryback. In September, Year
Revenue and Taxation, Income Tax Section, LR 14:98 (February            6, a LDR audit of Year 1 through Year 4 shows that taxpayer
1988), repromulgated by the Department of Revenue, Policy               failed to claim a $20,000 deduction in Year 1. The
Services Division, LR 30:473 (March 2004).                              prescriptive period for filing a refund claim for this
§1124. Net Operating Loss Deduction                                     unclaimed deduction expired on December 31, Year 5. Year
                                                                        1 income (as originally reported) of $100,000 is not reduced
   A. Election to Relinquish Carryback of a Net Operating               by the unclaimed deduction for purposes of computing Year
Loss. The election to relinquish carryback is made by filing            1’s pre-modification taxable income, and the unclaimed
a return carrying the net operating loss to the earliest of the         deduction isn’t taken into account in determining the Year 3
taxable years allowed for carryovers.                                   NOL to be carried to Year 2. Thus the taxpayer is entitled to
  B. Changes to Election                                                a full refund or credit of all its Year 1 tax paid on the Year 1
                                                                        reported income of $100,000, and the Year 3 NOL carried to
     1. Except as otherwise provided herein, a taxpayer                 Year 2 is $65,000 (i.e. Year 3 NOL of $165,000 less Year 1
may change the election to relinquish carryback of a net                reported income of $100,000).
operating loss or the decision to carryback a net operating
loss provided any additional tax and interest due as a result               2. A calendar year 100 percent Louisiana corporate
of the change is paid and any refund due as a result of the             taxpayer has an NOL of $165,000 for Year 3. Its taxable
change has not prescribed.                                              income before the FIT deduction for each of its two earlier


                                                                  43           Louisiana Administrative Code            December 2011
                                                     REVENUE AND TAXATION

years is as follows: Year 2-$150,000 and Year 1-$100,000.                the latter, shall be allocated to the state or states in which the
On April 1, Year 6, taxpayer files a claim for refund for Year           real and tangible personal property of the controlled
1 (its first year of operation) and Year 2 due to the Year 3             corporation is located. The allocation shall be made on the
NOL carryback. In September, Year 6, an LDR audit of Year                basis of the ratio of the value of such property located in
1 through Year 4 shows that taxpayer failed to report                    Louisiana to the value of such property within and without
$20,000 of income in Year 1. Year 1 income (as originally                the state, as follows.
reported) of $100,000 is increased by the unreported income
                                                                                  i.   Real and tangible personal property includes
for purposes of computing Year 1’s pre-modification taxable
                                                                         all such property of the controlled corporation regardless of
income, and the unreported income is taken into account in
                                                                         whether the property is idle or productive and regardless of
determining the Year 3 NOL to be carried to Year 2. Thus the
                                                                         the nature of the income that it produces.
taxpayer is entitled to a full refund or credit of all its Year 1
tax paid on the Year 1 actual income of $120,000, and the                        ii.   The value of Louisiana real and tangible
Year 3 NOL carried to Year 2 is $45,000 (i.e. Year 3 NOL of              property and real and tangible property within and without
$165,000 less Year 1 actual income of $120,000).                         the state shall be the average value of such property at the
                                                                         beginning and close of the taxable period, determined on a
  AUTHORITY NOTE: Promulgated in accordance with R.S.                    comparable basis. If the average value does not fairly
47:287.86 and 1511.
                                                                         represent the average of the property owned during the year,
  HISTORICAL NOTE: Promulgated by the Department of
Revenue, Policy Services Division, LR 36:2290 (October 2010).            the average value shall be obtained by dividing the sum of
                                                                         the monthly balances by the number of months in the taxable
§1130. Computation of Net Allocable Income from                          period.
       Louisiana Sources
                                                                                iii.   Value of Property to Be Used
   A. Allocation of Items of Income and Loss. R.S.                                   (a). For purposes of this Subsection, the value of
47:287.93 provides that items of gross allocable income or               property to be used shall be determined using one of the
loss shall be allocated directly to the state or states within           following methods. The taxpayer will choose which
which such items of income are earned or derived. The                    valuation method to use on the first return filed following
statute attributes every item of gross allocable income to a             the effective date of this regulation on which a R.S.
location and does not allow for any unallocated items of                 47:287.738(F)(2) election is made by employing the chosen
income. The principles embodied in the statute and this                  valuation method on the tax return. Once a valuation method
regulation are that items of allocable income from the use of            is chosen, this valuation method must be used on all future
tangible assets are allocated to the location of the tangible            returns upon which the R.S. 47:287.738(F)(2) election is
asset at the time of the use; income from the use of                     made and cannot be changed without the approval of the
intangible assets is allocated to the business situs of the              secretary upon the showing of good cause:
intangible asset, or in the absence of a business situs, to the
commercial domicile of the corporation; and items of                                   (i). the value of property is cost to the
allocable income from services are allocated to the location             taxpayer, less a reasonable reserve for depreciation,
at which the service was performed.                                      amortization, depletion, and obsolescence; or
                                                                                      (ii). the value of property is cost to the
   1. Rents and Royalties from Immovable or Corporeal                    taxpayer, so long as the property continues to be used in the
Movable Property                                                         taxpayer's trade or business;
      a. Rents and royalties from immovable or corporeal                             (iii). the value of property is the value
movable property shall be allocated to the state where such              reflected on the taxpayer's books, so long as the value is not
property is located at the time the income is derived.                   below zero.
       b. Rents or royalties from incorporeal immovables,                           (b). The secretary may require a different method
such as mineral interests, are allocated to the state in which           of valuation or adjust reserves if the method elected by the
the property subject to the interest is located.                         taxpayer does not reflect the fair value of the property.
    2.   Interest from Controlled Corporation                                3. Royalties or Similar Revenue Received for the Use
                                                                         of Patents, Trademarks, Copyrights, Secret Processes, and
        a. Under the provisions of R.S 47:287.738(F)(2), a               Other Similar Intangible Rights
corporation may elect to pay tax on interest income from a
corporation that is controlled by the former through direct                      a. Royalties or similar revenue received for the use
ownership of 50 percent or more of the voting stock of the               of patents, trademarks, copyrights, secret processes, and
latter.                                                                  other similar intangible rights shall be allocated to the state
                                                                         or states in which such rights are used. The use referred to is
     b. The election is made for each taxable period by                  that of the licensee rather than that of the licensor.
employing the method on the return or amended return.
                                                                                 i.    Example: X Company, Inc., a Delaware
       c. If the election is made, interest from securities              corporation with its commercial domicile in California,
and credits that is received by the electing corporation from            owns certain patents relating to the refining of crude oil,
another corporation controlled by the former through the                 which at all times were kept in its safe in California. During
direct ownership of 50 percent or more of the voting stock of            2006, the X Company, Inc. entered into an agreement with


Louisiana Administrative Code                  December 2011        44
                                                           Title 61, Part I

the Y Corporation whereby that company was given the right             plus a ratable portion of the allowable deductions, except
to use the patents at its refineries in consideration for the          federal income taxes, that are not directly attributable to any
payment of a royalty based upon units of production. The Y             item or class of gross income.
Corporation used the patents exclusively at its Louisiana
                                                                              1.   Interest Expense
refinery and paid the X Company, Inc. the amount of
$100,000 for such use. The entire royalty income of                            a. The method of allocation and apportionment for
$100,000 is allocable to Louisiana.                                    interest set forth in these regulations is based on the
        ii.    Example: ABC Company, Inc. is a trademark               approach that money is fungible and that interest expense is
holding company incorporated in Delaware that owns certain             attributable to all activities and property regardless of any
trademarks relating to the sale of retail goods and/or                 specific purpose for incurring an obligation on which
services. In 2005, ABC entered into a licensing agreement              interest is paid. Exceptions to the fungibility method are set
with XYZ Retail Co. in which XYZ was authorized to use                 forth in LAC 61:I.1130.B.1.b. The fungibility approach
the trademark in exchange for consideration of royalty                 recognizes that all activities and property require funds and
payments. In 2006, XYZ used the trademark to promote the               that management has a great deal of flexibility as to the
sale of retail goods and/or services in Louisiana. The royalty         source and use of funds and that the creditors of the taxpayer
payment attributable to the Louisiana stores was $250,000.             look to its general credit for repayment and thereby subject
ABC must allocate the royalty income of $250,000 to                    the money loaned to the risk of all of the taxpayer's
Louisiana.                                                             activities. When money is borrowed for a specific purpose,
                                                                       such borrowing will free other funds for other purposes, and
       b. Income from a mineral lease, royalty interest, oil           it is reasonable under this approach to attribute part of the
payment, or other mineral interest shall be allocated to the           cost of borrowing to such other purposes. Consistent with
state or states in which the property subject to such mineral          the principles of fungibility, except as otherwise provided,
interest is situated.                                                  the aggregate of deductions for interest in all cases shall be
    4. Income from Construction, Repair, or Other Similar              considered related to all income producing activities and
Services                                                               assets of the taxpayer and, thus, allocable to all the gross
                                                                       income that the assets of the taxpayer generate, have
       a. Income from construction, repair, or other similar           generated, or could reasonably have been expected to
services is allocable to the state or states in which the work         generate.
is done.
                                                                              b. Exceptions to the fungibility method are allowed
       b. The phrase other similar services means any                  in the same circumstances that exceptions are allowed by
work that has as its purpose the improvement of immovable              IRC §861 and the regulations promulgated thereunder. These
property belonging to a person other than the taxpayer where           exceptions include:
a substantial portion of such work is performed at the
location of such property.                                                      i.  the direct allocation of interest expense to the
                                                                       income generated by certain assets that are subject to
        i.   It is not necessary that the services rendered            qualified nonrecourse indebtedness;
actually result in the improvement of the immovable
property.                                                                      ii.   the direct allocation of interest expense to
                                                                       income generated by certain assets that are acquired in
        ii.  Mineral Properties. For the purpose of this               integrated financial transactions.
Section, mineral properties, whether under lease or not,
constitute immovable properties. Thus, the drilling of a well                 c. Interest Expense Applicable to Louisiana Gross
on a mineral lease is considered to have as its purpose the            Allocable Income. Interest expense that is applicable to
improvement of such property notwithstanding the fact that             assets that produce or that are held for the production of
the well may have been dry.                                            Louisiana gross allocable income shall be an item of
                                                                       deduction in determining net allocable income or loss from
       c. Examples of other similar services include, but              Louisiana.
are not limited to:
                                                                                i.    Except as otherwise provided, the amount of
         i.   landscaping services;                                    interest that is applicable to such assets shall be determined
        ii.   the painting of houses;                                  by multiplying the amount of interest expense applicable to
                                                                       total allocable assets, determined without reference to the
       iii.   the removal of stumps from farmland; and                 income limitation in the case of investments in U.S.
       iv.    the demolition of buildings.                             government bonds and notes held as temporary cash
                                                                       investments, by a ratio, the numerator of which is the
   B. Deduction of Expenses, Losses and Other Deductions.              average value of assets that produce or that are held for the
From the total gross allocable income from all sources and             production of Louisiana allocable income and the
from the gross allocable income allocated to Louisiana there           denominator of which is the average value of assets that
shall be deducted all expenses, losses, and other deductions,          produce or that are held for the production of allocable
except federal income taxes, allowable under the Louisiana             income within and without Louisiana.
income tax law that are directly attributable to such income


                                                                 45           Louisiana Administrative Code           December 2011
                                                   REVENUE AND TAXATION

        ii.   When Louisiana net apportionable income                          i.  This stock is to be attributed as Louisiana
is determined on the separate accounting method, refer to              assets on the basis of the proportion of the respective
LAC 61:I.1132.C.2 for rules pertaining to the determination            amounts of income upon which Louisiana income tax has
of the amount of interest expense applicable to Louisiana              been paid to all income, including exempt income, earned
allocable income.                                                      everywhere of the controlled corporation.
         d.   Interest Expense Applicable to Total Allocable                   ii.    Stock held in corporations exempt from
Assets                                                                 Louisiana income tax shall not be included as a Louisiana
                                                                       asset for the purpose of this computation.
         i.   Interest expense applicable to total allocable
assets is interest expense that is applicable to assets that                  f.   Loans to Controlled Corporations
produce or that are held for the production of allocable
                                                                               i.    When a R.S. 47:287.738(F)(2) election is made
income within and without Louisiana.
                                                                       and the electing corporation loans interest-bearing funds to
        ii.   When a R.S. 47:287.738(F)(2) election is                 corporations controlled by direct ownership of 50 percent or
made, assets that produce or that are held for the production          more of the voting stock of the controlled corporation, the
of allocable income will include direct investments in                 receivable shall be included in the numerator of the
50 percent or more owned subsidiaries (other than normal               Louisiana interest expense computation as Louisiana assets
trade accounts receivable) whether or not such investments,            based on the following allocation.
advances, or loans produce any income.
                                                                                   (a). These receivables are to be attributed as
       iii.   The amount of interest that is applicable to             Louisiana assets on the basis of the ratio of the value of the
assets producing or held for the production of allocable               controlled corporation's real and tangible personal property
income shall be determined by multiplying the total amount             located in Louisiana to the value of such property within and
of interest expense by a ratio, the numerator of which is the          without Louisiana.
average value of assets that produce or that are held for the
                                                                                   (b). For the purpose of the allocation, real and
production of allocable income, and the denominator of
                                                                       tangible personal property includes all such property of the
which is the average value of all assets of the taxpayer.
                                                                       controlled corporation regardless of whether the property is
        iv.   Although income exempt from Louisiana                    idle or productive and regardless of the nature of the income
income tax, such as interest, is not taxable and is therefore          that it produces.
not included in allocable income, the adjustment for the
                                                                               ii.   Receivables Resulting from Loans of Non-
amount of interest expense applicable to assets producing
                                                                       Interest Bearing Funds. When a R.S. 47:287.738(F)(2)
such income is computed in the same manner as in the case
                                                                       election is made:
of assets producing allocable income.
                                                                                   (a). receivables resulting from loans of non-
            (a). For convenience of computation such assets
                                                                       interest bearing funds to controlled corporations are deemed
are grouped with assets producing or held for the production
                                                                       to be assets producing or held for the production of allocable
of allocable income.
                                                                       income for the purpose of determining the amount of interest
            (b). Whenever interest expense applicable to               expense applicable to assets that produce or that are held for
U.S. government bonds and notes that are held as temporary             the production of allocable income from sources within and
cash investments determined as provided above, exceeds the             without Louisiana;
amount of income derived from such investments, the
                                                                                   (b). when receivables resulting from loans of
interest expense that is attributable to such investments shall
                                                                       non-interest bearing funds to controlled corporations have a
be limited to the amount of income derived from such
                                                                       Louisiana business situs, or, in the absence of a business
investments.
                                                                       situs, the lending corporation has a Louisiana commercial
           (c). The amount of interest expense applicable to           domicile, such receivables shall not be included in the
U.S. government bonds and notes that are held as temporary             numerator of the interest expense allocation formula for the
cash investments, determined without reference to the                  purpose of LAC 61:I.1130.B.1.c., unless the secretary, in
income therefrom, is that portion of the interest expense              order to clearly reflect Louisiana apportionable and allocable
applicable to assets that produce or that are held for the             net income, imputes interest income on such receivables.
production of allocable income, that the ratio of the average
value of U.S. government bonds and notes held as temporary                    g.   Average Value
cash investments bears to the average value of all assets that                 i.   Except as otherwise provided in this Section,
produce or that are held for the production of allocable               average value shall mean the value at the beginning of the
income.                                                                taxable period plus the value at the end of the taxable period,
      e. Investments in Stock of Controlled Corporations.              the sum of which is divided by two.
When a corporation holds stock in corporations controlled                      ii.    If the average value as calculated above does
by direct ownership of 50 percent or more of the voting                not fairly represent the average of the property owned during
stock of the latter, the stock shall be included in the                the year, the average value shall be obtained by dividing the
numerator of the Louisiana interest expense computation as
Louisiana assets based on the following allocation.

Louisiana Administrative Code                 December 2011       46
                                                            Title 61, Part I

sum of the monthly balances by the number of months in the              be made with respect to each asset and will take into
taxable period.                                                         consideration such factors as:
       h.   Value of Property to Be Used                                              (a). the number of locations at which the asset is
                                                                        used;
         i.   For purposes of this Subsection, the value of
property to be used shall be determined using one of the                             (b). the number of days during the taxable period
following methods. The taxpayer will elect which method to              the asset is used within and without Louisiana;
use on the first income tax return filed for the taxable period                    (c). the amount of income that the asset
following the taxable period in which these regulations take            generated within and without Louisiana; and
effect by employing the elected method on the tax return.                           (d). the earning power of the asset at the time the
Once made, the election is irrevocable, without the approval            interest expense is generated.
of the secretary upon the showing of good cause:
                                                                                i.    Examples. The following examples                      are
            (a). the value of property is cost to the taxpayer,         applicable for both foreign and domestic corporations.
less a reasonable reserve for depreciation, amortization,
                                                                                    (a). Example 1. The XYZ Corporation has
depletion, and obsolescence; or
                                                                        incurred interest expense in the amount of $150,000.00
            (b). the value of property is cost to the taxpayer,         during the year 2006 and has not elected to treat interest
so long as the property continues to be used in the taxpayer's          income from 50 percent or more owned subsidiaries as
trade or business; or                                                   taxable income. The subsidiary of XYZ Corporation earns
                                                                        no income in Louisiana. During 2006 XYZ Corporation
           (c). the value of property is the value reflected
                                                                        derived total allocable and exempt income and Louisiana
on the taxpayer's books, so long as the value is not below
                                                                        allocable income as follows:
zero.
                                                                                                                        Louisiana  Total
       ii.   The secretary may require a different method                      *Interest from 80% owned Subsidiary       $    -0- $10,000
of valuation or adjust reserves if the method elected by the                   *Interest (interest bearing checking)     $    -0- $ 5,000
                                                                                Dividends                                $    -0- $ 5,000
taxpayer does not reflect the fair value of the property.                       Net rent income                          $10,000  $10,000
                                                                                Trademark royalty income                 $ 4,000  $10,000
        iii.  Intangible assets that produce or that are held
                                                                                Total                                    $14,000  $40,000
for the production of allocable income within and without                      *Exempt but included with allocable income only for
Louisiana may acquire a business situs in more than one                          convenience in computing the applicable expense.
state. The percentage of the value of the asset that is to be
attributed to Louisiana is a factual determination required to

            (i). Its assets, liabilities, and net worth as of January 1, 2006, and December 31, 2006, were as follows:

             Assets:                                                                        1-1-06                   12-31-06
             Cash (currency on hand)                                                    $      10,000                $ 10,000
             Cash (non-interest bearing checking)                                       $      90,000                $ 140,000
             Cash (interest bearing checking)                                           $    110,000                 $ 220,000
             Accounts receivable                                                        $    780,000                 $ 800,000
             Inventories                                                                $    600,000                 $1,000,000
             Stocks – 80% owned subsidiary                                              $    100,000                 $ 100,000
             Trademark                                                                  $      80,000                $ 80,000
             Loan to 80% owned subsidiary                                               $    310,000                 $ 430,000
             Real estate (rental property)                               $ 100,000                      $ 100,000
             Less depreciation reserve                                   $ 20,000                       $ 25,000
             Net                                                                        $     80,000                 $   75,000
             Real estate                                                 $5,000,000                     $5,125,000
             Less depreciation reserve                                   $1,080,000                     $1,300,000
             Net                                                                        $3,920,000                   $3,825,000
             Total Assets                                                               $6,080,000                   $6,680,000

             Liabilities and Net Worth:
             Accounts payable                                            $ 400,000                      $1,000,000
             Bonds                                                       $3,000,000                     $3,000,000
             Total Liabilities                                                          $3,400,000                   $4,000,000
             Capital stock                                               $2,080,000                     $2,080,000
             Earned surplus                                              $ 600,000                      $ 600,000
             Net worth                                                                  $2,680,000                   $2,680,000
             Total Liabilities and Net Worth                                            $6,080,000                   $6,680,000




                                                                  47           Louisiana Administrative Code                 December 2011
                                                              REVENUE AND TAXATION

          (ii). The amount of interest that is applicable to the assets that produce or are held for the production of allocable or
exempt income within and without Louisiana is $18,633, determined as follows:

                                                                                             Allocable Investments            Total Assets
                                                                                             1-1-06      12-31-06        1-1-06        12-31-06
                Loan to 80% owned subsidiary                                               $310,000 $ 430,000          $ 310,000 $ 430,000
                Cash (interest bearing checking)                                           $110,000 $ 220,000          $ 110,000 $ 220,000
                Rental property (net)                                                      $ 80,000 $ 75,000           $ 80,000 $          75,000
                Stock – 80% owned subsidiary                                               $100,000 $ 100,000          $ 100,000 $ 100,000
                Trademark asset                                                            $ 80,000 $ 80,000           $ 80,000 $          80,000
                Other assets                                                               $        0 $          0     $5,400,000 $ 5,775,000
                Totals                                                                     $680,000 $ 905,000          $6,080,000 $ 6,680,000
                1-1-06 totals                                                                           $ 680,000                    $ 6,080,000
                Totals                                                                                  $1,585,000                   $12,760,000
                Average                                                                                 $ 792,500                    $6,3800,000
                Ratio                                                                                                                      .12422

                Interest expense allocated to total allocable assets (.12422 x $150,000)                                              $     18,633


           (iii). The amount of interest expense that is                                            (i). Total allocable and exempt income and
applicable to the assets that produce or are held for the                              Louisiana allocable income would be:
production of Louisiana allocable income is $2,668
determined as follows:                                                                                                                    Louisiana      Total
                                                                                            *Interest from 80% owned Subsidiary             $ 1,000     $10,000
                                                                                           **Interest (interest bearing checking)                  0    $ 5,000
     Louisiana Allocable Assets
                                                                                           **Dividends                                             0    $ 5,000
        January 1, 2006―Rental property                      $ 80,000
                                                                                           Net rent income                                  $10,000     $10,000
     **January 1, 2006―Trademark asset                       $ 32,000
                                                                                           Trademark royalty income                         $ 4,000     $10,000
        December 31, 2006―Rental property                    $ 75,000
     **December 31, 2006―Trademark Asset                     $ 40,000                      Total                                            $15,000     $40,000
     Total                                                   $227,000
     Average Louisiana allocable assets                      $113,500                               (ii). The amount of interest that is applicable
     Average total allocable assets                          $792,500                  to the assets that produce or are held for the production of
     Ratio of Louisiana average to total average
     allocable assets                                           .14322                 allocable or exempt income within and without Louisiana
     Interest expense attributed to total allocable or                                 remains $18,633, calculated in the same manner. The only
     exempt assets                                            $18,633                  difference is that the loan to the subsidiary is now an
     Interest expense allocated to Louisiana allocable                                 allocable asset. The amount of interest expense that is
     assets (.14322 x $18,633)                                $ 2,668
     **For purposes of this example, it has been assumed that the                      applicable to the assets that produce or are held for the
        ratio of trademark royalties for the prior month from                          production of Louisiana allocable income or to the portion of
        Louisiana sources to total trademark royalties for the prior                   the investment in a 50 percent or more owned subsidiary that
        month is representative of the value of the asset attributable                 has produced income that has been taxed by Louisiana is
        to Louisiana at balance sheet date. In December 2005,
        Louisiana trademark royalties were $480 and total                              $3,656 determined as follows.
        trademark royalties were $1,200. In December 2006,
        Louisiana trademark royalties were $550 and total                                      January 1, 2006―Rental property                         $ 80,000
        trademark royalties were $1,100.                                                       January 1, 2006―Trademark asset                         $ 32,000
                                                                                            **January 1, 2006―Stock of subsidiary                      $ 5,000
            (b). Example 2. Assume the same facts as                                           January 1, 2006―Loan to subsidiary                      $ 31,000
Example 1 except that XYZ Corporation has elected under                                        December 31, 2006―Rental property                       $ 75,000
R.S.47:287.738(F)(2) to treat interest income from its                                         December 31, 2006―Trademark Asset                       $ 40,000
                                                                                            **December 31, 2006―Stock of subsidiary                    $ 5,000
50 percent or more owned subsidiary as taxable allocable                                       December 31,2006―Loan to subsidiary                     $ 43,000
income. The ratio of the value of real and tangible personal                                Total                                                      $227,000
property of the controlled corporation located in Louisiana                                 Average Louisiana allocable assets                         $155,500
to the value of such property within and without Louisiana is                               Average total allocable assets                             $792,500
                                                                                            Ratio of Louisiana average to total average allocable
10 percent for both the beginning and ending balance sheets.                                assets                                                       .19621
Therefore, 10 percent of the interest from the subsidiary is                                Interest expense attributed to total allocable or
allocated to Louisiana and 10 percent of the receivable is                                  exempt assets                                              $ 18,633
attributed to Louisiana. In addition, the ratio of the                                      Interest expense attributed to Louisiana
                                                                                            (.19621 x $18,633)                                          $ 3,656
subsidiary's income earned within Louisiana upon which
                                                                                               *Taxpayer has elected to be taxed on certain interest income.
Louisiana income tax has been paid to income earned                                           **Exempt but included only for convenience in computing the
everywhere of the subsidiary in the prior and current years is                                   applicable expense.
5 percent. Therefore 5 percent of XYZ's investment in the
subsidiary is attributed to Louisiana. Example 1 would
change as follows.



Louisiana Administrative Code                          December 2011            48
                                                             Title 61, Part I

    2.   Overhead Expense                                                sources within and without Louisiana, except gross allocable
                                                                         income from rent of immovable or corporeal movable
      a. Overhead Expense Attributable to Total Gross
                                                                         property or from construction, repair or other similar
Allocable Income Derived from Rent of Immovable or
                                                                         services, may be determined by any reasonable method that
Corporeal Movable Property or from Construction, Repair,
                                                                         clearly reflects net allocable income from such items of
or Other Similar Services
                                                                         income.
         i.    Overhead expense attributable to Louisiana
                                                                              3. Generally, direct and indirect expenses, other than
gross allocable income derived from rent of immovable or
                                                                         interest expenses, attributed to allocable income from
corporeal movable property and from construction, repair, or
                                                                         foreign sources for federal purposes are deductible in
other similar services shall be deducted from such income
                                                                         arriving at total net allocable income. Expenses, other than
for the purposes of determining Louisiana net allocable
                                                                         interest expenses, sourced pursuant to federal law and
income or loss from such items of income. The amount of
                                                                         regulations to allocable income from foreign sources are
overhead expense attributable to such income shall be
                                                                         presumed to be actual expenses attributed to such income.
determined by multiplying overhead expense attributed to
total gross allocable income derived from rent of immovable                C. This regulation shall not restrict the authority of the
or corporeal movable property and from construction, repair,             secretary to adjust the allocation of items of income and
or other similar services by the arithmetical average of two             expense when the secretary determines that such adjustments
ratios, as follows:                                                      are necessary in order to clearly reflect the taxpayer's
                                                                         Louisiana income.
           (a). the ratio of the amount of Louisiana gross
allocable income derived from rent of immovable or                         AUTHORITY NOTE: Promulgated in accordance with R.S.
corporeal movable property and from construction, repair, or             47:287.81, R.S. 47:287.92, R.S. 47:287.93, R.S. 47:287.785, and
other similar services to total gross allocable income from              R.S. 47:1511.
such sources;                                                              HISTORICAL NOTE: Promulgated by the Department of
                                                                         Revenue and Taxation, Income Tax Section, LR 14:101 (February
            (b). the ratio of the amount of direct cost                  1988), repromulgated by the Department of Revenue, Policy
incurred in the production of Louisiana gross allocable                  Services Division, LR 30:477 (March 2004), amended LR 32:410
income derived from rent of immovable or corporeal                       (March 2006).
movable property and from construction, repair, or other                 §1132. Computation of Net Apportionable Income from
similar services to total direct cost incurred in the production                Louisiana Sources
of such income.
                                                                            A. General
        ii.  Overhead expense attributable to total gross
                                                                              1. From the total gross apportionable income there
allocable income derived from rent of immovable or
                                                                         shall be deducted all expenses, losses and other deductions
corporeal movable property or from construction, repair, or
                                                                         except federal income taxes, allowable under this Chapter,
other similar services shall be deducted from such income
                                                                         which are directly attributable to such income, and there also
for the purposes of determining total net allocable income or
                                                                         shall be deducted a ratable portion of allowable deductions,
loss from such items of income. The amount of overhead
                                                                         except federal income taxes, which are not directly
expense attributable to such income shall be determined by
                                                                         attributable to any item or class of gross income. Direct and
multiplying total overhead expense by the arithmetical
                                                                         indirect expenses attributed to total allocable income derived
average of two ratios, as follows:
                                                                         from foreign sources, for federal purposes, are not
           (a). the ratio of the amount of total gross                   deductible in arriving at total net apportionable income.
allocable income derived from rent of immovable or                       Expenses sourced pursuant to federal law and regulations to
corporeal movable property and from construction, repair, or             allocable income from foreign sources are presumed to be
other similar services to total gross income derived from all            attributed to such income.
sources;
                                                                              2. R.S. 47:287.94 provides two methods for
           (b). the ratio of the amount of direct cost                   computing the amount of net apportionable income from
incurred in the production of total gross allocable income               Louisiana sources, viz., the apportionment method and the
derived from rent of immovable or corporeal movable                      separate accounting method. The apportionment method
property and from construction, repair, or other similar                 must be used unless it produces a manifestly unfair result
services to total direct cost incurred in the production of              and the conditions prescribed by R.S. 47:287.94 are met.
gross income from all sources.                                           Where the apportionment method is utilized, the
                                                                         apportionment percentage must be applied to the total
       iii.  If the taxpayer has not maintained documents
                                                                         apportionable net income without exception. For rules
or records sufficient to compute the ratios required by this
                                                                         pertaining to the determination of the apportionment
Subparagraph, the secretary shall, upon examination,
                                                                         percentage refer to §1134.
determine the method by which to attribute overhead
expense.                                                                    B. Separate Accounting Method; Permission Obtained
                                                                         from Secretary. Any taxpayer desiring to use the separate
       b. Overhead Expense Attributable to All Other
                                                                         accounting method in determining the portion of the total net
Items of Gross Allocable Income. Overhead expense
                                                                         apportionable income derived from Louisiana sources must
attributable to items of gross allocable income derived from
                                                                         first obtain permission from the secretary to use that method.
                                                                   49           Louisiana Administrative Code           December 2011
                                                   REVENUE AND TAXATION
A written request for such permission should be submitted to    value of assets in Louisiana and the denominator of which is
the secretary not more than 30 days after the close of the      the average value of all assets of the taxpayer.
taxable year for which the first use of the separate
                                                                     3. For the purposes of this Paragraph, value to be used
accounting method is to be made if the permission is
                                                                and average value mean the same as defined in §1130.B.6
granted. The secretary will grant such permission if the
                                                                and 7. Special rules as provided in §1130.B.11 also apply to
taxpayer demonstrates to his satisfaction that the
                                                                this Section.
apportionment method as applied to the business operations
of the taxpayer would produce a manifestly unfair result,            4. When Louisiana net apportionable income is
that the separate accounting method produces a fair and         determined on the separate accounting method, overhead
equitable determination of the amount of net income taxable     expense shall be deducted from Louisiana gross
by Louisiana, and that the other conditions of R.S. 47:287.94   apportionable income for the purposes of determining
are met. The application of the taxpayer must be                Louisiana net apportionable income or loss. The amount of
accompanied by the following information:                       such overhead expense shall be determined by multiplying
                                                                total overhead expense attributable to gross apportionable
     1. a complete description of the nature of the business
                                                                income by a ratio, the numerator of which is the amount of
operations of the taxpayer in Louisiana;
                                                                direct cost incurred in the production of Louisiana gross
     2. a complete description of the nature of the business    apportionable income determined on a separate accounting
operations of the taxpayer in other states;                     method and the denominator of which is total direct cost
                                                                incurred in the production of gross apportionable income
     3. a comprehensive statement as to the sources of
                                                                from all sources. For the purpose of this Paragraph, the
goods or commodities sold by the taxpayer in Louisiana;
                                                                secretary is authorized to adjust the amount of overhead
     4. a comprehensive statement as to the disposition of      expense allocated to Louisiana gross apportionable income if
goods or commodities produced by the taxpayer in                he determines that such action is necessary in order to
Louisiana;                                                      clearly reflect Louisiana apportionable net income. For rules
                                                                pertaining to the determination of the amount of overhead
     5. a computation for the preceding taxable year
                                                                expense attributable to gross allocable income refer to
showing the Louisiana net apportionable income on the           §1130.B.8, 9 and 10.
apportionment basis and on the separate accounting basis;
                                                                     5. Income from Natural Resources. If the separate
     6. a statement of the particular circumstances in the
                                                                accounting method is used by a taxpayer whose business
taxpayer's business operations and the particular factors or
                                                                includes the production of natural resources, such as oil, gas,
elements in the apportionment formula which give rise to the
                                                                other liquid hydrocarbons, or sulphur, (a) which are sold by
difference between the amounts of Louisiana net
                                                                the taxpayer prior to refining or processing, or (b) which are
apportionable income as computed under the two methods;         transported by the taxpayer into or from the state of
     7. a statement as to whether the circumstances,            Louisiana for refining or processing prior to sale and at the
factors, and elements mentioned in §1132.B.6 are relatively     time of production or transfer into or from this state have an
permanent so that the two methods would reasonably be           ascertainable market value, the Louisiana net apportionable
expected to yield similar differences in results each year, or  income of such taxpayer shall be computed as set forth
whether in the ordinary course of the taxpayer's business       below.
those circumstances have changed from time-to-time and                 a. The gross apportionable income of the taxpayer
may be expected to do so in the future; and                     from sources in Louisiana shall be determined by dividing
     8. any other information which the taxpayer may            the activities of the taxpayer into three classes:
consider pertinent.                                                      i.    the production of natural resources;
  C. Separate Accounting of Apportionable Income                           ii.   the marketing of refined or manufactured
                                                                    products; and
     1. When the separate accounting method is used, the
net apportionable income taxable in Louisiana shall be                     iii.   all other activities.
determined by deducting from the gross apportionable                       b. The Louisiana gross apportionable income from
income from sources in Louisiana all costs and expenses             the production of natural resources shall include:
directly attributable to such income and a ratable part of
                                                                            i.   sales of natural         resources   produced    in
overhead expenses and other expenses which are attributable
                                                                    Louisiana and sold in this state;
in part to the Louisiana gross apportionable income.
                                                                            ii.   the market value, at the time of transfer, of all
     2. When Louisiana net apportionable income is                  natural resources produced in this state and transferred by
determined on the separate accounting method, interest              the taxpayer to another state for sale, refining, or processing,
expense applicable to Louisiana gross apportionable and             provided that if the natural resources are sold by means of an
allocable income shall be deducted from such gross income           "arm's length" transaction prior to refining or processing, the
for the purposes of determining Louisiana net apportionable         market value prescribed herein shall not exceed the selling
and allocable income or loss. The amount of interest expense        price; and
applicable to Louisiana gross apportionable and allocable
income shall be determined by multiplying total interest                   iii.   the market value, at the time of transfer, of all
expense by a ratio, the numerator of which is the average           natural resources produced by the taxpayer in Louisiana and

Louisiana Administrative Code               December 2011      50
                                                              Title 61, Part I

transferred to a refinery or processing plant of the taxpayer             §1134. Determination of Louisiana Apportionment
located in Louisiana.                                                            Percent
       c. The Louisiana gross apportionable income from                      A. General. R.S. 47:287.95 provides for an
the marketing of refined or manufactured products shall be                apportionment percent that is to be applied to the taxpayer's
the amount of gross sales of such products in this state. From            total net apportionable income in determining the Louisiana
such gross sales there shall be deducted, in lieu of the usual            net apportionable income. Specific formulas are prescribed
deduction for cost of goods sold, the market value of the                 for air, pipeline, other transportation businesses, and certain
products sold as of the time of transfer into this state. In              service enterprises. A general formula is prescribed for
determining the market value, the customary prices for the                manufacturing, merchandising and any other business for
quantities transferred shall be applied.                                  which a formula is not specifically prescribed. The statute
                                                                          contemplates that only one specific formula be used in
        d. The Louisiana gross apportionable income from
                                                                          determining the apportionment percent, that being the
all activities in this state other than the production of natural
                                                                          formula prescribed for the taxpayer's primary business. As a
resources and the marketing of refined or manufactured
products shall include all sales and other apportionable                  general rule, where a taxpayer is engaged in more than one
revenues derived in this state from such other activities.                business, the taxpayer's primary business shall be that which
                                                                          is the primary source of the taxpayer's net apportionable
       e. The net income of the taxpayer from each of the                 income. When the numerator and denominator are zero in
three classes of income set forth in §1132.C.5.b, c, and d                any one or more ratios in the apportionment formula, such
shall be determined by deducting from each such class of                  ratio shall be dropped from the apportionment formula and
gross income all allowable deductions directly attributable to            the arithmetical average determined from the total remaining
the production of such income and a ratable part of all                   ratios.
allowable deductions which are attributable in part to the
                                                                             B. Property Ratio
production of such class of income.
                                                                               1. The value of immovable and corporeal movable
     6. For the purpose of this Section, a natural resource
                                                                          property owned by the taxpayer and used in the production
shall be deemed to be sold in Louisiana if it is located in this
state at the time title thereto passes to the purchaser.                  of net apportionable income is included in each formula
                                                                          except those provided for certain service businesses and
     7. In the absence of specific proof of the value of                  those using the single sales ratio under the general formula.
natural resources at the time of transfer from or into this               Where only a part of the property is used in the production
state, the value of the natural resources at the time of                  of apportionable income, only the value of that portion so
production, to be determined in accordance with the methods               used shall be included in the property ratio. However, where
prescribed for the determination of "gross income from the                the entire property is used in the production of both allocable
property" for purposes of percentage depletion under R.S.                 and apportionable income the value of the entire property
47:287.745(B), shall be deemed to be the market value at the              shall be included in the property ratio. Idle property and
time of transfer.                                                         property under construction, during such construction and
                                                                          prior to being placed in service, shall not be included in the
  D. Change from Separate Accounting to Apportionment
                                                                          property ratio. Property held as reserve or standby facilities,
Method. A taxpayer who has obtained permission to use the
                                                                          or property held as a reserve source of materials shall be
separate accounting method, or who has been required by
                                                                          considered used. For example, a taxpayer who purchases a
the secretary to use that method, shall continue to use that
                                                                          lignite deposit that is held as a reserve source of fuel should
method for succeeding taxable years until a change occurs in
                                                                          include the value of such deposits in the property ratio.
the nature of the taxpayer's operations which would warrant
                                                                          Non-productive mineral leases are considered to be held for
a change in accounting method. When such a change occurs,
                                                                          such use and should be included in the property ratio. The
the taxpayer shall report the facts to the secretary not later
                                                                          value of inventories of merchandise in transit shall be
than 30 days after the close of the taxable year in which the
                                                                          allocated to the state in which their delivery destination is
change occurred. If the secretary finds, on the basis of the
                                                                          located in the absence of conclusive evidence to the contrary.
facts reported by the taxpayer or otherwise obtained by the
                                                                          R.S. 47:287.95(A)(1) provides that aircraft owned by a
secretary, that the apportionment method should be used, the
                                                                          taxpayer whose net apportionable income is derived
taxpayer will be notified to use that method for the year in
                                                                          primarily from air transportation should not be included in
which the change in operations occurred. The apportionment
                                                                          the property ratio.
method shall then be used until a change is made pursuant to
R.S. 47:287.94.                                                               2. Proration of Rolling Stock and Other Mobile
  AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                          Equipment. The average value of rolling stock and other
47:287.94.                                                                mobile equipment owned by the taxpayer shall be prorated
  HISTORICAL NOTE: Promulgated by the Department of                       within and without Louisiana as set forth below.
Revenue and Taxation, Income Tax Section, LR 14:104 (February                    a. The value of diesel locomotives shall be
1988), repromulgated by the Department of Revenue, Policy                 allocated to Louisiana on the basis of the ratio of diesel
Services Division, LR 30:480 (March 2004).
                                                                          locomotive miles in Louisiana to total diesel locomotive
                                                                          miles.


                                                                    51           Louisiana Administrative Code           December 2011
                                                    REVENUE AND TAXATION
       b. The value of other locomotives shall be allocated      state shall be considered Louisiana operating equipment
to Louisiana on the basis of the ratio of other locomotive       miles.
miles in Louisiana to total other locomotive miles.                   3. Insufficient Records. In any case where the
      c. The value of freight train cars shall be allocated             information necessary to determine the ratios listed above is
to Louisiana on the basis of the ratio of freight car miles in          not readily available from the taxpayer's records, the
Louisiana to total freight car miles.                                   secretary, in his discretion, may permit or require the
      d. The value of passenger cars shall be allocated to              allocation of such equipment by any method deemed
Louisiana on the basis of the ratio of passenger car miles in           reasonable by him.
Louisiana to total passenger car miles.                                   C. Wage Ratio. Salaries, wages and other compensation
        e. The value of passenger buses shall be allocated to           for personal services as used in R.S. 47:287.95 includes only
Louisiana on the basis of the ratio of bus miles in Louisiana           compensation paid to employees or to a deferred plan for the
to total bus miles.                                                     benefit of employees of the taxpayer for services rendered in
                                                                        connection with the production of net apportionable income.
      f. The value of diesel trucks shall be allocated to
Louisiana on the basis of the ratio of diesel truck miles in              D. Revenue Ratio. This ratio is generally composed of
Louisiana to total diesel truck miles.                                  sales, charges for service, and other gross apportionable
                                                                        income. Neither allocable income nor income excluded from
      g. The value of other trucks shall be allocated to                gross income, such as interest and dividends, is included in
Louisiana on the basis of the ratio of other truck miles in             the ratio. For all formulas except that provided by R.S.
Louisiana to total other truck miles.                                   47:287.95(F), the revenue ratio consists of the ratio of the
      h. The value of trailers shall be allocated to                    gross apportionable income of the taxpayer from Louisiana
Louisiana on the basis of the ratio of trailer miles in                 sources to the total gross apportionable income of the
Louisiana to total trailer miles.                                       taxpayer. For the formula provided by R.S. 47:287.95(F), the
                                                                        revenue ratio consists of the ratio of net sales made in the
      i. The value of towboats shall be allocated to                    regular course of business and other gross apportionable
Louisiana on the basis of the ratio of towboat miles in                 income attributable to this state to the total net sales made in
Louisiana to total towboat miles. In the determination of               the regular course of business and other gross apportionable
Louisiana towboat miles, one half of the mileage of all                 income of the taxpayer. Sales not made in the regular course
navigable rivers or streams bordering on both Louisiana and             of business are not included in the formula provided by R.S.
another state shall be considered Louisiana miles.                      47:287.95(F).
       j. The value of tugs shall be allocated to Louisiana                  1. Revenue from Transportation other than Air Travel.
on the basis of the ratio of tug miles in Louisiana to total tug        Gross apportionable income attributable to Louisiana from
miles. In the determination of Louisiana tug miles, one half            transportation other than air includes all such revenue
of the mileage of all navigable rivers or streams bordering             derived entirely from sources within Louisiana plus a
on both Louisiana and another state shall be considered                 portion of revenue from transportation performed partly
Louisiana miles.                                                        within and partly without Louisiana, based upon the ratio of
                                                                        the number of units of transportation service performed in
      k. The value of barges shall be allocated to
                                                                        Louisiana to the total of such units. Revenue from
Louisiana on the basis of the ratio of barge miles in
                                                                        transportation exclusively without Louisiana shall not be
Louisiana to total barge miles. In the determination of
                                                                        included in gross apportionable income attributed to
Louisiana barge miles, one half of the mileage of all
navigable rivers or streams bordering on both Louisiana and             Louisiana. Gross apportionable income attributable to
another state shall be considered Louisiana miles.                      Louisiana shall be computed separately for each of the four
                                                                        classes enumerated below.
        l. The value of work and miscellaneous equipment
                                                                              a. A unit of transportation shall consist of the
shall be allocated to Louisiana on the basis of the ratio of
                                                                        following:
track miles in Louisiana to total track miles in the case of a
railroad, on the basis of the ratio of bank miles operated in                    i.   in the case of the transportation of passengers,
Louisiana to total bank miles operated in the case of inland            the transportation of one passenger a distance of 1 mile;
waterway transportation and on the basis of the ratio of route
miles operated in Louisiana to total route miles operated in                    ii.   in the case of the transportation of liquid
the case of truck and bus transportation. In the determination          commodities, including petroleum or related products, the
of bank miles, one half of the bank mileage of navigable                transportation of one barrel of the commodities a distance of
rivers or streams bordering on both Louisiana and another               1 mile;
state shall be considered Louisiana bank miles.                                iii.   in the case of the transportation of property
       m. The value of other floating equipment shall be                other than liquids, the transportation of 1 ton of the property
allocated to Louisiana on the basis of the ratio of operating           a distance of 1 mile;
equipment miles within Louisiana to the total operating                         iv.   in the case of the transportation of natural gas,
equipment miles, for the particular equipment to be                     the transportation of one MCF or one MBTU a distance of
allocated. In the determination of Louisiana operating                  1 mile.
equipment miles, one half of the mileage of all navigable
rivers or streams bordering on both Louisiana and another
Louisiana Administrative Code                 December 2011        52
                                                                       Title 61, Part I

       b. In any case where another method would more                              call or telecommunication is located in Louisiana, regardless
clearly reflect the gross apportionable income attributable to                     of where the charges are billed or paid;
Louisiana, or where the above information is not readily
                                                                                              v.   revenue    from    mobile   telecommunications
available from the taxpayer's records, the secretary, in his
                                                                                   service:
discretion, may permit or require the use of any method
deemed reasonable by him.                                                                     (a). revenue from mobile telecommunications
                                                                                   services shall be attributed to the place of primary use,
        c. Example: ABC Corporation is in the business of
                                                                                   which is the residential or primary business street address of
transporting natural gas as a common carrier. During the
                                                                                   the customer;
year 2005, ABC entered into five transactions. In the first
transaction 1 million MMCF was transported from Texas,                                         (b). if a customer receives multiple services, such
through Louisiana, to Mississippi. The total distance                              as multiple telephone numbers, the place of primary use of
transported was 500 miles, of which 200 miles was in                               each separate service shall determine where the revenue
Louisiana. The charge for the transportation was $250,000.                         from that service is attributed;
In the second transaction 1 million MMCF was transported
from one point in Louisiana to another point in Louisiana, a                                  (c). revenue from mobile telecommunications
                                                                                   services shall be attributed to Louisiana if the place of
distance of 150 miles, for a charge of $150,000. In the third
                                                                                   primary use of the service is Louisiana.
transaction 1 million MMCF was transported from one point
in Texas to another point in Texas, a distance of 500 miles,                              b. Definitions. For the purposes of this paragraph,
for a charge of $250,000. In the fourth transaction 1 million                      the following terms have the following meanings unless the
MMCF was transported from a point in Louisiana to a point                          context clearly indicates otherwise.
in another state for a charge of $500,000. The total distance
transported was 1,000 miles, of which 100 miles were in                                    i.    Call―a           specific     telecommunications
Louisiana. In the fifth transaction 1 million MMCF was                             transmission.
transported from a point in Louisiana to a point in another                                ii.   Customer―any person or entity that contracts
state for a charge of $250,000. The distance transported was                       with a home service provider or the end user of the mobile
500 miles, of which 100 was in Louisiana. The portion of the                       telecommunications service if the end user is not the person
gross apportionable income attributed to Louisiana would be                        or entity that contracts with the home service provider for
computed as follows.                                                               mobile telecommunications service.
                                                         Louisiana Amount                 iii.   Home Service Provider―the facilities-based
First Transaction―200/500 x $250,000 =                           $100,000          carrier or reseller with which the customer contracts for the
Second Transaction―entirely from Louisiana =                       150,000         provision of mobile telecommunications services.
Third Transaction―neither entirely nor partially in Louisiana           -0-
Fourth Transaction―100/1,000 x $500,000 =                           50,000                iv.    Place    of    Primary    Use      of  Mobile
Fifth Transaction―100/500 x $250,000 =                              50,000         Telecommunications        Service―the      street   address
Louisiana Income From Transportation of Natural Gas              $350,000
                                                                                   representative of where the customer's use of mobile
    2. Revenue from Telephone, Telecommunications, and                             telecommunications service primarily occurs. This address
Other Similar Services                                                             must be within the licensed service area of the home service
                                                                                   provider and must be either the residential or the primary
      a. Gross apportionable income attributable to                                business street address of the customer. The home service
Louisiana from providing telephone, telecommunications,                            provider shall be responsible for obtaining and maintaining
and similar services shall include, but is not limited to:                         the customer's place of primary use as prescribed by R.S.
                                                                                   47:301(14)(i)(ii)(bb)(XI).
        i.   revenue derived from charges for providing
telephone "access" from a location in this state. "Access"                                v.    Service Address―the address where the
means that a call can be made or received from a point                             telephone equipment is located and to which the telephone
within this state. An example of this type of receipt is a                         number is assigned.
monthly subscriber fee billed with reference to a service
address located in the state and without regard to actual                                 vi.   Telecommunications―the             electronic
usage;                                                                             transmission, conveyance or routing of voice, data, audio,
                                                                                   video, or any other information or signals to a point, or
        ii.   revenue derived from charges for unlimited                           between or among points, by or through the use of any
calling privileges, if the charges are billed by reference to a                    medium such as wires, cables, satellite, microwave,
service address located in this state;                                             electromagnetic wires, light waves or any combination of
                                                                                   those or similar media now in existence or that might be
       iii.   revenue from intrastate telephone calls or other
                                                                                   devised, but telecommunications does not include the
telecommunications, except for mobile telecommunication
                                                                                   information content of any such transmission.
services, beginning and ending in Louisiana;
                                                                                         vii.    Telecommunications          Service―providing
       iv.  revenue from interstate or international
                                                                                   telecommunications, including service provided by
telephone calls or other telecommunications, except for
                                                                                   telecommunication service resellers, for a charge and
mobile telecommunication services, either beginning or
                                                                                   includes telephone service, telegraph service, paging service,
ending in Louisiana if the service address charged for the
                                                                                   personal communication services and mobile or cellular
                                                                              53          Louisiana Administrative Code            December 2011
                                                    REVENUE AND TAXATION
telephone service, but does not include              electronic    carrier. There is no difference between a case where a
information service or Internet access service.                    taxpayer in Houston ships F.O.B., Houston, to a purchaser in
                                                                   Baton Rouge, by common carrier, and a case where all facts
     3. Attribution of Sales Made in the Regular Course of
                                                                   are the same except that the purchaser goes to Houston in his
Business
                                                                   own vehicle and returns with the goods to Baton Rouge.
        a. Sales made in the regular course of business
                                                                            d. Generally, transportation by public carrier
attributable to Louisiana under R.S. 47:287.95 are those
                                                                   pipelines is accorded the same treatment as transportation by
sales where the goods, merchandise or property are received
                                                                   any other type of public carrier. However, because of the
in Louisiana by the purchaser. Similarly, where the goods,
                                                                   nature and character of the property, the type of carrier, and
merchandise or property are received in some other state, the
                                                                   customs of the trade, the natural resources in the pipeline
sale is attributable to that state. Sales made in the regular
                                                                   may become intermixed with other natural resources in the
course of business include all sales of goods, merchandise or
                                                                   pipeline and lose their particular identity. Where delivery is
product of the business or businesses of the taxpayer. They
                                                                   made to a purchaser in more than one state, or to different
do not include the sale of property acquired for use in the
                                                                   purchasers in different states, peculiar problems of
production of income. Where a taxpayer under a contract
                                                                   attribution arise. In solving such problems consideration
performs essentially a management or supervision function
                                                                   must be given to the following principles.
and receives a reimbursement of his costs plus a stipulated
amount, the amounts received as reimbursed costs are not                      i.  Where it can be shown that a taxpayer in one
sales although the contract so designates them. The                state sold a quantity of crude oil to a purchaser in another
stipulated amount constitutes other gross apportionable            state, and the oil was transported to the purchaser by pipeline
income and shall be attributed to the state where the contract     carrier, the sale will be attributed to the state where the crude
was performed. Where goods are delivered into Louisiana by         oil is received by the purchaser, even though the crude oil
a public carrier, or by other means of transportation,             delivered might not be the identical oil sold because of
including transportation by the purchaser, the place at which      commingling in the pipeline. Custom of the trade indicates
the goods are ultimately received after all transportation has     the purchaser buys a quantity of oil of certain quality rather
been completed shall be considered as the place at which the       than any specific oil.
goods are received by the purchaser. The transportation in
                                                                             ii.  In situations involving several deliveries in
question is the initial transportation relating to the sale by
                                                                   several different states to one or more purchasers, the
the taxpayer, and not the transportation relating to a sale or
                                                                   general rules should be applied with logic and common
subsequent use by the purchaser.
                                                                   sense.
        b. Where the goods are delivered by the seller in his
                                                                            e. In determining the place of receipt by the
own equipment, it is presumed that such transportation
                                                                   purchaser after the initial transportation has ended, peculiar
relates to the sale. Where the goods are delivered by a
                                                                   problems may be created by the storage of the property
common or contract carrier, whether shipped F.O.B.
                                                                   purchased immediately upon purchase at a place other than
shipping point, and whether the carrier be a pipeline,
                                                                   the place of intended use. The primary problem created by
trucking line, railroad, airline or some other type of carrier,
                                                                   such storage is in determining whether or not the
the place where the goods are ultimately received by the
                                                                   transportation after storage relates to the sale by the
purchaser after the transportation by the carrier has ended is
                                                                   taxpayer. Generally, the rules and principles set forth above
deemed to be the place where the goods are received by the
                                                                   will control where the storage is of temporary nature, such as
purchaser.
                                                                   that necessitated by lack of transportation, by change from
        c. Where        the    transportation   involved     is    one means of transportation to another, or by natural
transportation by the purchaser, in determining whether or         conditions. In cases where the storage is permanent or semi-
not the transportation relates to the sale by the taxpayer,        permanent, delivery to the place of storage concludes the
consideration must be given to the following principles.           initial transportation, and the sale is attributed to the place of
                                                                   storage.
          i.  To be related to the initial sale, the
transportation should be commenced immediately. However,                4. Attribution of Gains from Sales Not Made in the
before a lapse of time is conclusive, consideration must be        Regular Course of Business
given to the nature and character of the goods purchased, the
                                                                            a. The net profit from sales not made in the regular
availability of transportation, and other pertinent
                                                                   course of business shall be included in the ratios provided by
circumstances.
                                                                   R.S. 47:287.95(C) and (D).
         ii.  The intent of the parties to the sale must also
                                                                            b. The net profit from the sale of a mineral lease,
be considered. The intent and purpose of the purchaser may
                                                                   royalty interest, oil payment, or other mineral interest shall
be determined directly, or by an evaluation of the nature and
                                                                   be attributed to the state or states in which the property
scope of his operation, customs of the trade, customary
                                                                   subject to such mineral interest is located.
activities of the purchaser, and all pertinent actions and
words of the purchaser at the time of the sale.                             c. The net profit from the sale of other intangibles
                                                                   shall be attributed to the state or states in which the
        iii.  In order for the transportation by the purchaser
                                                                   intangible has acquired a business situs if the intangible has
to be related to the initial sale by the taxpayer to the
                                                                   been so used in connection with a business as to acquire a
purchaser, such transportation must be generally the same in
nature and scope as that performed by the taxpayer or by the
Louisiana Administrative Code                 December 2011     54
                                                            Title 61, Part I

business situs, or, in the absence of such a business situs,            amounts received in the course of these risk management
shall be at the commercial domicile of the taxpayer.                    transactions are not gross apportionable income for the
                                                                        purposes of determining the Louisiana apportionment
       d. The net profit from the sale of the tangibles shall
                                                                        percent. The amounts received relate to insurance expenses.
be attributed to the state or states in which the tangible is
located at the time of sale.                                              AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                        47:287.95, R.S. 47:287.785, and R.S. 47:1511.
    5. Exchanges. In transactions in which raw materials,                 HISTORICAL NOTE: Promulgated by the Department of
products, or merchandise are transferred to another party at            Revenue and Taxation, Income Tax Section, LR 14:105 (February
one location in exchange for raw materials, products, or                1988), repromulgated by the Department of Revenue, Policy
merchandise at another location in agreements requiring the             Services Division, LR 30:482 (March 2004), amended LR 31:694
subsequent replacement with similar property on a routine,              (March 2005), LR 32:421 (March 2005).
continuing, or repeated basis, all such transactions shall be           §1137. Exceptions to Taxable Year of Inclusion; Taxable
carefully analyzed in order to determine whether they                          Year Deductions Taken
constitute sales that should be included in the sales ratio or             A. Improperly Reported Item of Income. R.S.
whether they constitute exchanges which are not sales and               47:287.442(A) does not relieve a taxpayer of the
should be excluded from the sales ratio.                                responsibility of filing a true and correct return and
     6. Recoveries       and    Reductions      of    Expense.          immediately correcting any errors which are discovered after
Transactions that are actually recoveries of expenses or                the return is filed. If an error is discovered, it is the
transactions that are part of a sequence of transactions for            obligation of the taxpayer to file promptly an amended
the purpose of managing risk, preventing loss, securing                 return reflecting the correct tax liability. The purpose of R.S.
product, securing market or protecting profit shall not be              47:287.442(A), so far as it deals with improperly reported
considered gross apportionable income for purposes of                   items of income, is to preclude a taxpayer's being required to
determining the Louisiana apportionment percent. Examples               pay again on an item of income which has borne tax in full
of such transactions include, but are not limited to:                   previously, even though for a period in which it was not
                                                                        properly reportable. An item of income will be deemed to
       a. Corporation A rents retail space in a shopping                have previously borne tax in full if the item, when multiplied
mall. The glass in the front door of the shop has broken and            by the lowest tax rate applicable to the taxpayer, results in a
Corporation A is unable to immediately contact the building             tax not less than the amount of tax actually paid on the
owner. Corporation A has the glass replaced and is later                return. If the item has not previously borne tax in full, R.S.
reimbursed by the building owner. The reimbursement is not              47:287.442(A) is not applicable to that portion of the item
gross apportionable income for purposes of determining the              which has not previously borne tax. That portion, which
Louisiana apportionment percent;                                        shall be the difference between the item of income and the
        b. Corporation B buys and sells wheat. As part of               taxable balance of net income, shall be reported as income
securing a supply of wheat at the best possible price                   during the year it was properly reportable.
Corporation B will, when it believes prices will be rising in             B. Example: The ABC Corporation, by mistake, reported
the future, purchase options to buy a fixed quantity of wheat           on its 1982 income tax return an item of accrued interest in
at a fixed price on a fixed date in the future. At times market         the amount of $5,000 which was properly reportable in
conditions will change subsequent to the purchase of an                 1983. It paid the Louisiana income tax shown to be due on
option and, believing that prices will fall and the wheat can           the return. The company never discovered its error. In 1987,
be bought even cheaper than the option price in the future,             the secretary discovers the error. The return for 1982 shows
the option will be sold. The amount received from the sale of           the following.
the option is not gross apportionable income for purposes of
determining the Louisiana apportionment percent. The                       Accrued interest                                             $    5,000
amount received relates to the ultimate cost of goods sold;                Income from operations                                           20,000
                                                                           Total income                                                 $   25,000
        c. Corporation C grows and sells wheat. It knows                   Less total authorized deductions                             $   21,000
that at harvest it will have at least a certain amount of wheat            Taxable income                                               $    4,000
that must be sold. To ensure a market for its wheat at harvest             Tax per return                                               $      160
Corporation B buys options to sell fixed quantities of wheat               Computation to determine if item has borne tax in full:
at fixed prices at harvest time. At times market conditions                Amount improperly reported                                   $    5,000
                                                                           Tax at lowest rate of taxpayer                               $      200
will change subsequent to the purchase of an option and,                   Tax paid                                                            160
believing that there will be sufficient buyers willing to pay a            Amount of tax unpaid                                         $       40
sufficient price at harvest time, the option will be sold. The             Computation of portion of item to be reported in 1983:
amount received from the sale of the option is not gross                   Improperly reported item                                     $    5,000
apportionable income for purposes of determining the                       Taxable balance of net income in 1982                             4,000
Louisiana apportionment percent. The amount received                       Portion of item to be reported                               $    1,000
relates to marketing expenses;
                                                                          AUTHORITY NOTE: Promulgated in accordance with R.S.
       d. Corporation D grows, buys and sells wheat. To                 47:287.442.
manage market risk in its business Corporation D engages in               HISTORICAL NOTE: Promulgated by the Department of
complex, sophisticated transactions involving options,                  Revenue and Taxation, Income Tax Section, LR 14:108 (February
futures contracts and various derivative contracts. Any
                                                                  55           Louisiana Administrative Code                         December 2011
                                                    REVENUE AND TAXATION
1988), repromulgated by the Department of Revenue, Policy        other information required to be shown in any return. Such
Services Division, LR 30:484 (March 2004).                       books or records required by this Section shall be available
§1140. Exemption from Tax on Corporations                        at all times for inspection by the secretary, and shall be
                                                                 retained so long as the contents thereof may be material in
   A. Generally, organizations meeting the qualifications        the administration of the income tax law. The secretary may
included under I.R.C. Sections 501 and 401(a) are exempt         at any time require the taxpayer to submit statements of net
from federal and Louisiana income tax liability.                 worth as of the beginning and end of the taxable year.
   B. However, organizations meeting the qualifications             AUTHORITY NOTE: Promulgated in accordance with
under I.R.C. Sections 501 and 401(a) are not exempt from         R.S.47:287.601.
taxation on unrelated business taxable income or income not         HISTORICAL NOTE: Promulgated by the Department of
included under I.R.C. Sections 501 and 401(a) for federal        Revenue and Taxation, Income Tax Section, LR 14:108 (February
income tax purposes. Since unrelated business taxable            1988), repromulgated by the Department of Revenue, Policy
income is not exempt from federal income tax, it is not          Services Division, LR 30:485 (March 2004).
exempt from Louisiana income tax. The Department of              §1148. Corporation Returns
Revenue will begin enforcing this requirement of R.S.
47:287.501 for all taxable periods beginning on and after           A. General Rules. Every corporation deriving income
January 1, 2008.                                                 from Louisiana sources shall file a return on forms secured
                                                                 from the secretary or by electronically filing a return, unless
   C. Exceptions                                                 expressly exempt from the tax. The first return and the last
                                                                 return of a corporation are returns for a full year and not for
     1. Mutual savings banks,              national banking
                                                                 a fractional part of a year. A corporation does not go out of
corporations, building and loan associations, and savings and
                                                                 existence by virtue of being managed by a receiver or trustee
loan associations are wholly exempt from the tax imposed
                                                                 who continues to operate it.
by this Chapter regardless of where they are organized.
                                                                    B. Liquidation. Upon liquidation or dissolution of a
     2. Banking corporations, regardless of where they are
                                                                 corporation there shall be attached to the final return a
organized, which are required by other laws of this state to
                                                                 statement showing:
pay a tax for their shareholders, or whose shareholders are
required to pay a tax on their shares of stock are also wholly        1. an outline of the plan under which the corporation
exempt. Banking corporations, other than those described         was dissolved;
above, are not exempt from the corporation income tax.
                                                                      2. the date the dissolution was formally commenced;
   D. An organization claiming a total or partial exemption
under R.S. 47:287.501(A) as an organization described in              3. the date the dissolution was completed;
I.R.C. Sections 501 or 401(a) is required to file an income           4. the name and address of each shareholder at
tax return in the same manner as any other corporation. To       dissolution and the number and par value of the shares of
claim a partial exemption, the organization must submit a        stock held by each;
copy of the Internal Revenue Service ruling establishing its
exempt status under I.R.C. Sections 501 or 401(a) with its            5. a description of assets conveyed to each
return, report any income subject to federal income tax on its   shareholder, creditor, or other person, showing book value,
Louisiana return, and include with the return a statement that   fair market value, and location, as well as the name and
all income not reported on the Louisiana return is exempt        address of each such person;
from federal income tax under I.R.C. Sections 501 or 401(a).          6. the consideration paid by each person for the assets
To claim a total exemption the organization must submit a        received; and
copy of the Internal Revenue Service ruling establishing its
exempt status under I.R.C. Sections 501 or 401(a) with its            7. whether the plan is intended to qualify under one of
return and include with its return a statement that none of its  the sections of the Internal Revenue Code relating to
income was subject to federal income tax.                        nonrecognition in whole or in part of gain by a shareholder,
                                                                 and, if so, the section involved.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:287.501.                                                             C. Receivers. Receivers, trustees in dissolution, trustees
  HISTORICAL NOTE: Promulgated by the Department of                  in bankruptcy, and assignees, operating the property or
Revenue and Taxation, Income Tax Section, LR 14:108 (February        business of corporations, must file returns for such
1988), repromulgated by the Department of Revenue, Policy            corporations. If a receiver has full custody of and control
Services Division, LR 30:485 (March 2004), amended LR 33:860         over the business or property of a corporation, he shall be
(May 2007).                                                          deemed to be operating such business or property within the
§1147. Notice of Regulation, Requiring Records,                      meaning of R.S. 47:287.612 whether he is engaged in
       Statements and Special Returns                                carrying on the business for which the corporation was
                                                                     organized or only in marshaling, selling, and disposing of its
  A. Every corporation subject to the provisions of
                                                                     assets for purposes of liquidation. However, a receiver in
Part II.A of Chapter 1 shall, for the purpose of enabling the
                                                                     charge of only part of the property of a corporation, as, for
secretary to determine the correct amount of income subject
                                                                     example, a receiver in mortgage foreclosure proceedings
to tax, keep such permanent books of account or records,
                                                                     involving merely a small portion of its property, need not file
including inventories, as are sufficient to establish the
                                                                     a return.
amount of gross income and the deductions, credits, and
Louisiana Administrative Code               December 2011       56
                                                              Title 61, Part I

  D. Change in Ownership                                                  shall be a written notice signed by the fiduciary and filed
                                                                          with the secretary. The notice must state the name and
     1. Except as otherwise provided herein, when a
                                                                          address of the person for whom the fiduciary is acting, and
change in ownership results in no change to the accounting
                                                                          the nature of the liability of such person; that is, whether it is
period but results in the income of the taxpayer being
                                                                          a liability for tax, and if so, the year or years involved, or a
reported on two separate federal returns, the taxpayer may
                                                                          liability at law or in equity of a transferee of property of a
either file one return for the entire accounting period or file
                                                                          taxpayer, or a liability of a fiduciary in respect of the
two short period returns. If two short period returns are filed
                                                                          payment of any tax from the estate of the taxpayer. Any such
the due date of both returns is the due date of the accounting
                                                                          written notice which has previously been filed with the
period year-end return.
                                                                          secretary shall be considered as sufficient notice. Unless
     2. Except as otherwise provided herein, when a                       there is already on file with the secretary satisfactory
change in ownership results in a change to the accounting                 evidence of the authority of the fiduciary to act for such
period, the filing of two short period returns is required. The           person in a fiduciary capacity, such evidence must be filed
due date of the first short period return is the fifteenth day of         with and made a part of the notice. If the fiduciary capacity
the fourth month following the last day of the calendar                   exists by order of court, a certified copy of the order may be
month in which the change in ownership occurred. If                       regarded as such satisfactory evidence. When the fiduciary
information concerning the federal income deduction is not                capacity has terminated, the fiduciary, in order to be relieved
available, an amended return will be required for this period             of any further duty or liability as such, must file with the
once the information is known. The due date of the last short             secretary written notice that the fiduciary capacity has
period return is the due date of the new accounting period                terminated as to him, accompanied by satisfactory evidence
year-end return.                                                          of the termination of the fiduciary capacity. The notice of
                                                                          termination should state the name and address of the person,
     3. When a one-day return is required under federal
                                                                          if any, who has been substituted as fiduciary.
law, that one-day is a separate accounting period for
Louisiana reporting purposes. A separate return is required                  B. Effect of Failure to Give Notice. If the notice of the
for that one day. This will usually result in the filing of three         fiduciary capacity described in Subsection A above is not
short period returns. The due date of the first short period              filed with the secretary before the sending of notice of
return is the fifteenth day of the fourth month following the             assessment by registered mail to the last known address of
last day of the calendar month in which the change in                     the taxpayer, or the last known address of the transferee or
ownership occurred. The due date of the one-day return is                 other person subject to liability, no notice of the deficiency
the fifteenth day of the fourth month following the last day              will be sent to the fiduciary. In such a case the sending of the
of the calendar month in which the one day falls. The due                 notice to the last known address of the taxpayer, transferee,
date of the last short period return is the due date of the new           or other person, as the case may be, will be a sufficient
accounting period year-end return.                                        compliance with the requirements of the income tax law,
                                                                          even though such taxpayer, transferee, or other person is
    4. All short period tax is computed under the
                                                                          deceased, or is under a legal disability, or in the case of a
provisions of R.S. 47:287.444.
                                                                          corporation, has terminated its existence. Under such
  AUTHORITY NOTE: Promulgated in accordance with R.S.                     circumstances if no petition is filed with the Board of Tax
47:287.441, R.S. 47:287.444, R.S.47:287.601, R.S. 47:287.612,             Appeals within 60 days after the mailing of the notice to the
R.S. 47:287.614, R.S. 47:287.623, R.S. 47:287.651, R.S.                   taxpayer, transferee, or other person, the assessment
47:287.732, R.S. 47:287.785 and R.S. 47:1511.                             becomes final upon the expiration of such 60-day period and
  HISTORICAL NOTE: Promulgated by the Department of
                                                                          demand for payment will be made.
Revenue and Taxation, Income Tax Section, LR 14:108 (February
1988), repromulgated by the Department of Revenue, Policy                    C. Definition. The term fiduciary means a guardian,
Services Division, LR 30:485 (March 2004), amended LR 30:2860             trustee, executor, administrator, receiver, conservator, or any
(December 2004).                                                          person acting in any fiduciary capacity for any person.
§1168. Notice of Fiduciary Relationship                                     D. Limitation. This regulation shall not be taken to
   A. Notice. As soon as the secretary receives notice that a             abridge in any way the powers and duties of fiduciaries
person is acting in a fiduciary capacity, such fiduciary must,            provided for in other sections of the income tax law.
except as otherwise specifically provided, assume the                       AUTHORITY NOTE: Promulgated in accordance with R.S.
powers, rights, duties, and privileges of the taxpayer with               47:287.683.
respect to the income tax imposed by Part II.A of Chapter 1.                HISTORICAL NOTE: Promulgated by the Department of
If the person is acting as a fiduciary for a transferee or other          Revenue and Taxation, Income Tax Section, LR 14:109 (February
                                                                          1988), repromulgated by the Department of Revenue, Policy
person subject to the liability specified in R.S. 47:287.682,
                                                                          Services Division, LR 30:486 (March 2004).
such fiduciary is required to assume the powers, rights,
duties, and privileges of the transferee or other person under            §1175. Definition of Separate Corporation Basis
that section. The amount of the tax or liability is ordinarily              A. Louisiana Revised Statute 47:287.733 provides that
not collectible from the personal estate of the fiduciary, but            corporations that are included with affiliates in a
is collectible from the estate of the taxpayer or from the                consolidated federal income tax return must file their
estate of the transferee or other person subject to the liability         Louisiana corporation income tax on a separate corporation
specified in R.S. 47:287.682. (See however R.S. 47:1673).                 basis. For Louisiana income tax purposes, filing a return on
The "notice to the secretary" provided for in R.S. 47:287.683
                                                                    57           Louisiana Administrative Code             December 2011
                                                      REVENUE AND TAXATION
a separate corporation basis means filing a return as if the            1. The amount of the credit is 2 percent of the total
affiliate either elects not to be part of the consolidated group   amount of the contract for the public work less any amounts
or is not included in a federal consolidated return.               paid to a subcontractor for a portion of the work performed
                                                                   by the subcontractor.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:287.733, R.S. 47:287.785, and R.S. 47:1511.                                  2. The total tax credit for all taxpayers is limited to
  HISTORICAL NOTE: Promulgated by the Department of                         $3 million per calendar year.
Revenue, LR 32:260 (February 2006).
§1189. Situs of Stock Canceled or Redeemed in                                    3. At least 85 percent of the full-time employees must
       Liquidation                                                          be offered health insurance. Contractors and subcontractors
                                                                            must pay 75 percent of the total premium for the health
   A. General Rule. R.S. 47:287.747 provides that the situs                 insurance of employees who choose to participate and at
of stock canceled or redeemed in the liquidation of a                       least 50 percent for each participating dependent of such
corporation, whether domestic or foreign, shall be in                       employees.
Louisiana in the same ratio that property located in
Louisiana, and received by a shareholder, bears to the total                    4.   Employees do not include independent contractors.
property received in the liquidation. Property as used in R.S.                B. Definitions
47:287.747 means all the assets of the liquidating
corporation without regard to liabilities. For the purpose of                    Dependents—spouse and those persons who would
determining the situs of the stock canceled or redeemed in                  qualify as dependents on the employee's federal income tax
liquidation, the fair market value of the property distributed              return.
in liquidation shall be used. The location of the property of                    Earnings―gross wages of the employee not including
the corporation shall be determined in accordance with the                  fringe benefits.
provisions of R.S. 47:287.93.
                                                                                 Health Insurance―coverage for basic hospital care, and
  B. Example: X, shareholder, owns 10 percent of the                        coverage for physician care, as well as coverage for health
shares of ABC, Inc., a foreign corporation. The basis of X's                care.
shares is $1,000. On July 1, 1986, ABC Inc., liquidates and
exchanges the following property for its outstanding stock,                     Public Work―a building, physical improvement, or
which it cancels.                                                           other fixed construction owned by the state or a political
                                                                            subdivision of the state.
                           Total Assets (Fair     Louisiana Assets            C. Procedure for Allocation of the Health Insurance
                            Market Value)       (Fair Market Value)         Credit
  Cash                          $      10,000            $    2,000
  Accounts receivable                  50,000                 8,000             1. The department will determine if the $3 million cap
  Buildings                            60,000                30,000         on the health insurance credit has been exceeded after all
  Land                                 60,000                10,000
                                                                            possible extensions to file have passed for all taxpayers.
  Stocks                               20,000                      0
                                $    200,000             $   50,000              2. If the $3 million cap on the health insurance credit
                                                                            is not exceeded and all applicable extensions to file returns
    1. Since 1/4 of the assets distributed in liquidation are               have expired, contractors and subcontractors who earn the
located in Louisiana, 1/4 of X's stock has its situs in                     health insurance credit will be allowed the full amount of the
Louisiana.                                                                  credit properly claimed on their tax return with appropriate
                                                                            interest.
    2.    Gain is computed as follows.
                                                                                 3. However, if more than $3 million is claimed
  Fair market value of property received                $    20,000         statewide, the department will allocate the credit on a pro
  Basis of property received                                  1,000         rata basis in proportion to the amount of health insurance
  Gain                                                  $    19,000         credit properly claimed on each employer's timely filed tax
  Louisiana taxable gain (1/4 of $19,000)               $     4,750
                                                                            return. The allocation will be made after the filing deadline
                                                                            inclusive of all applicable extension periods.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:287.747.                                                                        a. Contractors and subcontractors claiming the
  HISTORICAL NOTE: Promulgated by the Department of                         health insurance credit and an overall refund of overpayment
Revenue and Taxation, Income Tax Section, LR 14:109 (February               for the taxable year should file their return with the
1988), repromulgated by the Department of Revenue, Policy                   department.
Services Division, LR 30:486 (March 2004).
§1195. Health Insurance Credit for Contractors of                                    i.  The department will reduce the taxpayer's total
                                                                            refund of overpayment by the amount of the health insurance
       Public Works
                                                                            credit claimed on the tax return.
  A. Louisiana Revised Statutes 47:287.759 allows for a
                                                                                   ii.   An initial refund of overpayment, the amount
tax credit against corporation income tax to contractors and
                                                                            of which is exclusive of the health insurance credit amount,
subcontractors constructing a public work who offer health
                                                                            will be sent to the taxpayer with a letter stating that the
insurance to their employees and their dependents.
                                                                            taxpayer's claimed health insurance credit will be held in


Louisiana Administrative Code                       December 2011      58
                                                            Title 61, Part I

abeyance until after the extended filing deadline and                   the original due date of the return regardless of any
subsequently will be refunded with appropriate interest.                extensions.
        iii.  The health insurance credit will be processed               D. Information that must be submitted with the return in
and refunded proportionately after the last extension for               order to properly claim the credit:
filing deadline.
                                                                             1. statement that health insurance has been offered to
       iv.    If the health insurance credit is reduced as              at least 85 percent of the employees;
provided by §1195.C.3 and the taxpayer owes additional
                                                                            2. copy of the health insurance coverage plan from the
money to the department, an assessment will be sent
                                                                        insurance company;
exclusive of penalties and interest if paid within 60 days.
                                                                            3. number of full-time employees working for the
           (a). If the additional amount owed is paid within
                                                                        contractor or subcontractor; and
the 60-day period, the interest will be abated pursuant to
R.S. 47:1601. Payment of the additional amount owed                            4.    amount of the contract for public work.
within the 60-day period will be considered to be a request
                                                                          AUTHORITY NOTE: Promulgated in accordance with R.S.
for waiver of delinquent payment penalties pursuant to R.S.             47:287.759, R. S. 47:1601, R.S. 47:1603, R.S. 47:287.785, and R.S.
47:1603 and will be granted.                                            47:1511.
            (b). If the amount owed is not paid within the                HISTORICAL NOTE: Promulgated by the Department of
                                                                        Revenue, Policy Services Division, LR 32:864 (May 2006).
60-day period, interest and penalties will be computed from
the original due date of the return regardless of any                               Chapter 13. Income: Individual
extensions.
                                                                        §1301. Requirements for Submitting Claims for Offset
       b. Contractors and subcontractors who claim the                         of Individual Income Tax Refunds against Debts
health insurance credit and still owe additional taxes for the                 Owed Certain State Agencies
taxable year, should file their return with the department and
remit payment with the return.                                             A. The responsible official for each claimant agency will
                                                                        provide to the secretary of revenue and taxation a certified
        i.    If the taxpayer's health insurance credit is              listing of all offset claims. The listing of offset claims must
reduced as provided by §1195.C.3, the taxpayer will receive             be made in writing or on magnetic tapes in a format
an assessment for the difference without being subject to               specified by the secretary of revenue and taxation which will
penalties and interest if paid within 60 days.                          permit a written listing to be generated.
        ii.  If the additional amount owed is paid within                  B. The responsible official must also furnish certification
the 60-day period, the interest will be abated pursuant to              in writing that the debts for which the offset claims are made
R.S. 47:1601. Payment of the additional amount owed                     are legally collectible, liquidated sums due and owing the
within the 60-day period will be considered to be a request             claimant agency or due and owing a person and collectible
for waiver of delinquent payment penalties pursuant to R.S.             by the claimant agency. The certification must include the
47:1603 and will be granted.                                            name and address of the claimant agency and the manner in
       iii.  If the amount owed is not paid within the                  which each offset claim arose.
60-day period, interest and penalties will be computed from               C. For each offset claim, the agency must include the
the original due date of the return regardless of any                   following information:
extensions.
                                                                               1.    the name of the individual;
       c. Contractors and subcontractors who claim the
health insurance credit that reduce their tax liability to zero                2.    the amount of offset claimed;
for a taxable year should file their return with the                           3.    the Social Security number of the debtor;
department.
                                                                               4.    the most current address available to the claimant;
         i.   If the taxpayer's health insurance credit is
reduced as provided by §1195.C.3 such that the taxpayer                      5. any additional information requested by the
owes additional tax, the taxpayer will receive an assessment            secretary which will facilitate identification and processing
for the taxes owed exclusive of interest and penalties if paid          of the offset claim.
within 60 days.                                                           D. Prior to participation in the program and each year
        ii.   If the additional amount owed is paid within              thereafter, each claimant agency participating in the
the 60-day period, the interest is abated pursuant to R.S.              garnishment program must furnish to the Department of
47:1601. Payment of the additional amount owed within the               Revenue and Taxation by October 1:
60-day period will be considered to be a request for waiver                 1. a statement that the agency intends to submit offset
of delinquent payment penalties pursuant to R.S. 47:1603                claims for the next year;
and will be granted.
                                                                             2. the anticipated number of offset claims to be
      iii.   If the amount owed is not paid within the                  certified to the department;
60-day period, interest and penalties will be computed from
                                                                               3.    the estimated total amount of claims due;
                                                                  59           Louisiana Administrative Code              December 2011
                                                   REVENUE AND TAXATION
     4. any additional information requested by the             §1303. Application of the Louisiana Individual Income
Secretary of Revenue and Taxation to facilitate the                      Tax to Native Americans
economical and efficient administration of this program.
                                                                  A. The income of an enrolled member of a federally
   E. The Secretary of Revenue and Taxation may establish       recognized Indian tribe residing on that tribe' reservation that
a minimum number of offset claims which will be accepted        is derived from sources on that reservation shall be
from each claimant agency.                                      exempted from Louisiana individual income tax. The
                                                                determination of the sources of gross allocable income shall
   F. The Secretary of Revenue and Taxation will
                                                                be consistent with R.S. 47:243.
determine the date each agency will be required to furnish
the listing of offset claims.                                     B. The income of an enrolled member of a federally
   G. The Secretary of Revenue and Taxation will                recognized Indian tribe residing on that tribe's reservation
                                                                that is derived from sources outside of that reservation is
determine the frequency and method of making remittances
                                                                taxable for Louisiana individual income tax purposes. This
to the claimant agency.
                                                                includes income derived from sources outside of the state.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:299.4.                                                               C. The income of an enrolled member of a federally
  HISTORICAL NOTE: Promulgated by the Department of                  recognized Indian tribe residing in Louisiana off of that
Revenue and Taxation, Income and Corporation Franchise Taxes         tribe's reservation is taxable for Louisiana individual income
Section, LR 10:804 (October 1984).                                   tax purposes regardless of source.
§1302. Nonresident Net Operating Losses                                D. If an enrolled member of a federally recognized
   A. Nonresident individuals may carry back or carry over           Indian tribe resides on that tribe's reservation for a portion of
Louisiana net operating losses. Louisiana net operating              the year and resides off of that tribe's reservation for a
losses may be carried and used in the same manner that               portion of the year such enrolled member shall be taxed
would be allowed for federal purposes if the nonresident             based upon where such enrolled member resided when the
individual's federal returns consisted of only the Louisiana         income in question was earned.
items of income and loss.                                              E Compensation from military sources paid to an
  B. Application                                                     enrolled member of a federally recognized Indian tribe shall
                                                                     be exempted from Louisiana individual income tax if:
    1. The years to which Louisiana net operating losses                  1. such enrolled member was residing on that tribe's
may be carried are the same as they are for federal personal         reservation at the time of entering the armed forces of the
income tax purposes.                                                 United States; and
    2. Net operating loss carrybacks and carryovers are                   2. such enrolled member has not elected to abandon
considered an adjustment to Louisiana income and must be             his or her residence on that tribe's reservation.
applied against total Louisiana income before applying any
                                                                       AUTHORITY NOTE: Adopted in accordance with R.S.
deductions.                                                          47:293(6)(a)(iii) and R.S. 47:295.
    3. When a net operating loss carryback or carryover is             HISTORICAL NOTE: Promulgated by the Department of
used a schedule must be attached to the return in which it is        Revenue, Policy Services Division, LR 27:2261 (December 2001).
used for each carryback or carryover showing:                        §1304. Nonresident Apportionment of Compensation
                                                                            from Personal Services Rendered in Louisiana
       a. the taxable year in which each loss that is being
carried back or carried over occurred; and                             A. For purposes of this Section, nonresident means any
                                                                     individual not domiciled, residing in, or having a permanent
       b. the amount of each loss applied to each taxable            place of abode in Louisiana.
year to which it was carried over or carried back.
                                                                       B. Nonresidents are taxed on all income from sources
     4. A separate schedule showing how each Louisiana               within Louisiana. Income from sources within Louisiana
net operating loss was determined may also be required.              includes compensation for personal services rendered within
  C. Limitations                                                     Louisiana.
     1. A Louisiana net operating loss carryback or                     C. The purpose of this rule is to apportion to Louisiana,
carryover cannot include any amount that has already been            in a fair and equitable manner, a nonresident's total
deducted for Louisiana purposes.                                     compensation for personal services performed in the state. It
                                                                     is presumed that application of the provisions of this rule
    2. Nothing in this Section authorizes a federal income
                                                                     will result in a fair and equitable apportionment of that
tax deduction for income that did not bear Louisiana
                                                                     compensation.
personal income tax.
  AUTHORITY NOTE: Promulgated in accordance with R.S.                    1. When the department demonstrates that the method
47:293, R.S. 47:295, and R.S. 47:1511.                               provided under this rule does not fairly and equitably
  HISTORICAL NOTE: Promulgated by the Department of                  apportion that compensation, the department may require the
Revenue, Policy Services Division, LR 28:101 (January 2002).         nonresident service provider to apportion that compensation
                                                                     under an alternative method the department prescribes, as
                                                                     long as the prescribed method results in a fair and equitable
                                                                     apportionment.
Louisiana Administrative Code               December 2011       60
                                                            Title 61, Part I

     2. If a nonresident service provider demonstrates that             employed within the state bears to the total number of
the method provided under this rule does not fairly and                 working days both within and without the state. If the
equitably apportion compensation, the nonresident may                   employee is paid on a mileage basis, that employee's
submit a proposal for an alternative method to apportion                Louisiana income includes that portion of the total
compensation. If approved, the proposed method must be                  compensation for personal services which the number of
fully documented and explained in the nonresident service               miles traversed in Louisiana bears to the total number of
provider's nonresident personal income tax return for the               miles traversed within and without the state. If the employee
state.                                                                  is paid on some other basis, the total compensation for
                                                                        personal services must be apportioned between this state and
    3. Nonresident service providers shall keep adequate
                                                                        other states and foreign countries in such a manner as to
records to substantiate their determination or to permit a
                                                                        allocate to Louisiana that portion of the total compensation
determination by the department of the part of their adjusted
                                                                        which is reasonably attributable to personal services
gross income that was derived from or connected with
                                                                        performed in this state. This Subsection is not intended to
sources in this state.
                                                                        attribute to Louisiana any income that is exempted from
  D. Compensation of Salaried Employees with a Constant                 state taxation by federal law.
Rate of Pay. The Louisiana income from personal services is
                                                                           H. Compensation of Nonresident Entertainers and
the proportion of total compensation from services rendered,
                                                                        Athletes Who Are Not Members of a Professional Athletic
which the total number of working days in the state bears to
                                                                        Team. Compensation earned by a nonresident entertainer is
the total number of working days both within and without
                                                                        considered earned where the services are performed,
the state.
                                                                        regardless of where the nonresident entertainer lives, enters
     1. The total number of working days is determined by               into the contract, or receives payment. Entertainers include,
subtracting all nonworking days from the total number of                but are not limited to, actors, singers, musicians, performers,
days in the year or contract period, if the contract period is          and professional athletes who are not members of a
less than a year.                                                       professional athletic team.
     2. Nonworking days include, but are not limited to,                    1. Entertainers must include the gross amount
Saturdays and Sundays not worked, holidays, days off for                received for performances in this state in their Louisiana
religious observance, days of absence due to illness or                 income.
personal injury, vacation days, days of leave without pay,
                                                                             2. Ordinary and necessary business expenses directly
days off for any personal reason, and sabbatical days.
                                                                        attributable to the income earned in Louisiana and a pro-rata
     3. Days spent in travel, if the travel is at the direction         share of indirect business expenses not directly attributable
of the employer, are considered working days even if the                to income from any particular source are "adjustments to
travel is on a day that would usually be considered a                   income." These "adjustments to income" are subtracted from
nonworking day.                                                         Louisiana income to arrive at "total Louisiana income."
   E. Compensation Based on Volume of Business. The                       I. Nonresident Athletes Who Are Members of a
Louisiana income from commissions earned by a                           Professional Athletic Team
nonresident traveling salesman, agent or other employee for
                                                                             1. The Louisiana income of a nonresident individual
services performed or sales made, whose compensation
                                                                        who is a member of a professional athletic team includes
depends directly on the volume of business transacted by
                                                                        that portion of the individual's total compensation for
him, includes that proportion of the compensation received
                                                                        services rendered as a member of a professional athletic
which the volume of business transacted by such employee
                                                                        team during the taxable year which, the number of duty days
within Louisiana bears to the total volume of business
                                                                        spent within the state rendering services for the team in any
transacted by him within and without the state.
                                                                        manner during the taxable year, bears to the total number of
   F. Compensation from Continuous Employment in                        duty days spent both within and without the state during the
Louisiana for Part of the Year. If a nonresident employee               taxable year.
(including officers of corporations, but excluding employees,
                                                                             2. Definitions. These terms are defined as follows.
mentioned in Subsection D above) is employed continuously
                                                                        Unless otherwise indicated, these definitions apply only to
in this state for a definite portion of any taxable year, that
                                                                        this Subsection.
employee's Louisiana income includes the total
compensation for the period employed in this state.                           Duty Days―all days during the taxable year from the
                                                                        beginning of the professional athletic team's official
   G. Compensation from Transportation Services. If a
                                                                        preseason training period through the last game in which the
nonresident employee is employed in this state at intervals
                                                                        team competes or is scheduled to compete.
throughout the year, as would be the case if employed in
operating trains, boats, planes, motor buses, trucks, etc.,                     i.   Duty days shall also include days on which a
between this state and other states and foreign countries, and          member of a professional athletic team renders a service for
is paid on an hourly, daily, weekly or monthly basis, that              a team on a date that does not fall within the period
employee's Louisiana income includes that portion of the                described in the general definition of duty days above, for
total compensation for personal services which the total                example, participation in instructional leagues, the Pro
number of working days, as defined in Subsection C above,               Bowl, or other promotional caravans. Rendering a service
                                                                  61           Louisiana Administrative Code           December 2011
                                                    REVENUE AND TAXATION
includes conducting training and rehabilitation activities, but                 (i). the payment of the signing bonus is not
only if conducted at the facilities of the team.                 conditional upon the signee playing any games for the team,
                                                                 or performing any subsequent services for the team, or even
         ii.   Included within duty days shall be game days,
                                                                 making the team;
practice days, days spent at team meetings, promotional
caravans, and preseason training camps, and days served                        (ii). the signing bonus is payable separately
with the team through all postseason games in which the          from the salary and any other compensation; and
team competes or is scheduled to compete.
                                                                              (iii). the signing bonus is nonrefundable.
        iii.   Duty days for any person who joins a team
                                                                         Total Compensation for Services Rendered as a
during the season shall begin on the day that person joins the
                                                                 Member of a Professional Athletic Team―the total
team, and for a person who leaves a team shall end on the
                                                                 compensation received during the taxable year for services
day that person leaves the team. If a person switches teams
                                                                 rendered:
during a taxable year, a separate duty day calculation shall
be made for the period that person was with each team.                     i.   from the beginning of the official preseason
                                                                 training period through the last game in which the team
        iv.    Days for which a member of a professional
                                                                 competes or is scheduled to compete during that taxable
athletic team is not compensated and is not rendering
                                                                 year; and
services for the team in any manner, including days when the
member of a professional athletic team has been suspended                 ii.   during the taxable year on a date that does not
without pay and prohibited from performing any services for      fall within the period in Clause i. above, for example,
the team, shall not be treated as duty days.                     participation in instructional leagues, the Pro Bowl, or
                                                                 promotional caravans.
         v.    Days for which a member of a professional
athletic team is on the disabled list shall be presumed not to      J. Optional team composite return for professional
be duty days spent in the state. They shall, however, be         athletic teams. Professional athletic teams may file a
included in total duty days spent within and without the         composite return, on a form prescribed by the secretary, on
state.                                                           behalf of its nonresident professional athletes.
        vi.   Travel days that do not involve either a game,               1. Resident professional athletes may not be included
practice, team meeting, promotional caravan or other similar           on a composite return.
team event are not considered duty days spent in the state,                 2. A schedule shall be included with the return, listing
but shall be considered duty days spent within and without             all nonresident professional athletes included in the
the state.                                                             composite filing. The schedule shall list all of the following
        Member of a Professional Athletic Team―shall                   information for each nonresident professional athlete:
include those employees who are active players, players on                   a.   name;
the disabled list, and any other persons required to travel and              b.   address;
who do travel with and perform services on behalf of a
professional athletic team on a regular basis. This includes,                c.   Social Security number;
but is not limited to, coaches, managers, and trainers.                       d. Louisiana income attributable to that nonresident
                                                                       professional athlete.
       Professional Athletic Team―includes, but is not
limited to, any professional baseball, basketball, football,                3. Nonresidents who are members of a professional
soccer, or hockey team.                                                athletic team who have any other Louisiana source income
       Total Compensation―includes salaries, wages,                    may be included in the composite return, however, inclusion
                                                                       in the composite return does not relieve these team members
bonuses, and any other type of compensation paid during the
                                                                       of the responsibility of filing any other required Louisiana
taxable year to a member of a professional athletic team for
                                                                       tax return. If the other Louisiana source income is properly
services performed in that year.
                                                                       reportable on a Louisiana income tax return, that return must
         i.   Total compensation shall not include strike              include the income from compensation as a member of a
benefits, severance pay, termination pay, contract or option-          professional athletic team. Any amount paid with the team
year buyout payments, expansion or relocation payments, or             composite return on a nonresident professional athlete's
any other payments not related to services rendered to the             behalf may be used as a credit against that team member's
team.                                                                  Louisiana individual income tax liability for the same tax
                                                                       period.
        ii.   For purposes of this rule, "bonuses" subject to
the allocation procedures described in this Subsection, are:                4. Nonresidents who are included in a properly filed
                                                                       and accurate team composite return, and who have no
            (a). bonuses earned as a result of play during the
                                                                       Louisiana income other than compensation for services
season, including performance bonuses, bonuses paid for
                                                                       rendered as a member of a professional athletic team, will be
championship, playoff or bowl games played by a team, or
                                                                       deemed to have filed a Louisiana individual income tax
for selection to all-star league or other honorary positions;
                                                                       return. Except that any underpayment by the team with the
and
                                                                       team composite return shall be the personal responsibility of
             (b). bonuses paid for signing a contract, unless          the members of the professional athletic team included in the
all of the following conditions are met:                               composite return.
Louisiana Administrative Code                 December 2011       62
                                                            Title 61, Part I

   5. The tax due on the composite return shall be                      by R.S. 39:99, the following schedule must be attached to
computed using either of the following methods:                         any income tax return filed, including individual, corporate,
                                                                        fiduciary, trust, or composite income tax returns. Each
       a. the sum of the actual tax liability from total
                                                                        nonresident professional athlete and professional sports
compensation for services rendered as a member of a
                                                                        franchise with Louisiana source income must attach a
professional athletic team for each member of the team
                                                                        schedule to the required Louisiana income tax return,
included in the composite return;
                                                                        including a team composite return, that includes the
      b. alternative method of computing the tax due on                 following information:
the composite return;
                                                                            1. the name of each facility, course, stadium, or arena
        i.   add the Louisiana income attributable to all               at which they earned income in Louisiana;
nonresident professional athletes included in the composite
                                                                            2. the location of each facility, course, stadium, or
return;
                                                                        arena at which they earned income in Louisiana; and
        ii.   subtract a deduction equal to 30 percent of the
                                                                            3. the number of duty days, as defined in
Louisiana income attributable to all nonresident professional
                                                                        LAC 61:I.1304.I, spent at each facility, course, stadium, or
athletes included in the composite return. This deduction is
                                                                        arena at which they earned income in Louisiana.
allowed in place of the combined standard deduction and
personal exemption, excess itemized deductions, and federal               B. For purposes of this Section only, these terms are
tax deduction for the same period;                                      defined as follows.
       iii.  the tax shall be computed using the maximum                    Professional Athlete—an athlete that either plays for a
individual tax rate applied to Louisiana income after the               professional sports franchise or who is a member of a
30-percent deduction.                                                   professional sports association or league.
      6. Each professional athletic team will be issued an                   Professional Sports Association or League—any of the
identification number by the department upon the filing of              following:
its first composite return. This identification number shall be
used on all subsequent composite returns filed by that team.                     a.   Professional Golfers Association of America;
     7. A team making a composite return and payment                             b.   National Football League;
must furnish the following information to all team members                       c.   National Basketball Association;
included in the composite return:
                                                                                 d.   National Hockey League;
       a.   the team's taxpayer identification number;
     b. the amount of the payment made on the team                               e.   East Coast Hockey League;
member's behalf;                                                                 f.   Pacific Coast League.
        c. a statement that the amount paid on the team
                                                                            Professional Sports Franchise—a member team of a
member's behalf can be used as a credit against that team
                                                                        professional sports association or league.
member's Louisiana individual income tax liability for the
same tax period, if the team member files an individual                   C. Nonresident professional athletes, if required to file
return with the Department of Revenue that declares the                 an individual income tax return, must utilize Louisiana
income from compensation as a member of a professional                  Nonresident Professional Athlete form IT-540B-NRA.
athletic team;
                                                                           D. Based on R.S. 47:1602.1, the failure to timely make
      d. the mailing address of the Louisiana Department                and file any return or schedule required by the secretary to
of Revenue; and                                                         administer the provisions of the Sports Facility Assistance
                                                                        Fund will result in a penalty of $500 for the first such
      e. the internet address of the Louisiana Department               failure, $1,000 for the second such failure within a three year
of Revenue.
                                                                        period beginning on the due date of the first delinquent
  K. Nothing in this regulation shall restrict the secretary's          return, and $2,500 for each subsequent failure within the
authority to otherwise provide for efficient administration of          three year period beginning on the due date of the first
the individual income tax.                                              delinquent return.
  AUTHORITY NOTE: Promulgated in accordance with R.S.                      E. Based on R.S. 47:1604.1, if any taxpayer fails to
47:290, R.S. 47:293, R.S. 47:295, and R.S. 47:1511.                     make any return or makes an incorrect return, under
  HISTORICAL NOTE: Promulgated by the Department of                     circumstances indicating willful negligence or intentional
Revenue, Policy Service Division LR 28:99 (January 2002).               disregard of rules and regulations, but with no intent to
§1305. Income Tax Schedule Requirement for Certain                      defraud, shall cause a penalty to be imposed, in addition to
       Nonresident Professional Athletes and                            any other penalties provided, of 5 percent of the tax or
       Professional Sports Franchises                                   deficiency found to be due, or $10 whichever is greater.
   A. If the Louisiana income tax of a nonresident                        AUTHORITY NOTE: Promulgated in accordance with R.S.
professional athlete or professional sports franchise is                39:100.1, R.S. 47:101(A)(3), R.S. 47:295, R.S. 47:1511, R.S.
attributable to the Sports Facility Assistance Fund, created            47:1602.1, and R.S. 47:1604.1.

                                                                  63           Louisiana Administrative Code             December 2011
                                                     REVENUE AND TAXATION
  HISTORICAL NOTE: Promulgated by the Department of                 D. A fee for processing the claim will be withheld from
Revenue, Policy Services Division, LR 28:98 (January 2002),       each refund issued.
amended LR 34:446 (March 2008).
                                                                                 AUTHORITY NOTE: Promulgated in accordance with R.S.
§1306. Offset of Individual Income Tax Refunds against                         47:299.34.
       Debts Owed Certain Persons                                                HISTORICAL NOTE: Promulgated by the Department of
                                                                               Revenue, Policy Services Division, LR 29:42 (January 2003).
  A. The claimant must submit a written offset claim with
a certified copy of the judgment that makes past-due                           §1307. Federal Income Tax Deduction
payments under a child-support award executory. The claim                        A. Individual income taxpayers who deduct the federal
must be submitted before participation in the program and                      income tax liability defined in R.S. 47:293(3) and are due a
by December 1 each year thereafter. After the first year of                    credit for foreign taxes, shall be allowed two options for
participation, a copy of the claim and judgment can be                         computing the federal income tax liability deduction. The
submitted if the information requested in Subsection B has                     taxpayer may either:
not changed.
                                                                                   1. use a federal tax liability that has been reduced by
  B. For each offset claim, the claimant must provide the                      the federal credit for foreign taxes allowed by Internal
following information:                                                         Revenue Code Section 27, and take the Louisiana credit for
    1.   the name of the debtor;                                               federal credits provided by R.S. 47:297.B; or
    2.   the amount of offset claimed;                                             2. use a federal tax liability that has not been reduced
                                                                               by the federal credit for foreign taxes allowed by Internal
    3.   the Social Security number of the debtor;                             Revenue Code Section 27, and forego any claim to the
     4. the most current address of the debtor available to                    Louisiana credit for federal credits provided by R.S.
the claimant; and                                                              47:297.B.
                                                                                 AUTHORITY NOTE: Adopted in accordance with R.S.
     5. any additional information requested that will
                                                                               47:293(3), R.S. 47:297.B, R.S. 47:295, and R.S. 47:1511.
facilitate identification of the debtor and processing of the                    HISTORICAL NOTE: Promulgated by the Department of
offset claim.                                                                  Revenue, Policy Services Division, LR 28:1030 (May 2002).
  C. Remittances will be made to the claimant within three                     §1310. Income Tax Tables
months after the debtor has waived the right to contest the                      A. Residents. The tax due for resident individuals shall
offset or final disposition by the claimant or by a court.                     be determined using one of the following tables depending
                                                                               on your filing status:



                                                Single or Married Filing Separately Filing Status
              If your Louisiana
               tax table income:                               And the total exemptions claimed is:
          At Least         Less Than        1              2             3            4             5         6           7           8
                                                                               Your Louisiana tax is:
                   0             4,500      0              0               0            0           0         0          0            0
               4,500             4,750      3              0               0            0           0         0          0            0
               4,750             5,000      8              0               0            0           0         0          0            0
               5,000             5,250     13              0               0            0           0         0          0            0
               5,250             5,500     18              0               0            0           0         0          0            0
               5,500             5,750     23              3               0            0           0         0          0            0
               5,750             6,000     28              8               0            0           0         0          0            0
               6,000             6,250     33             13               0            0           0         0          0            0
               6,250             6,500     38             18               0            0           0         0          0            0
               6,500             6,750     43             23               3            0           0         0          0            0
               6,750             7,000     48             28               8            0           0         0          0            0
               7,000             7,250     53             33              13            0           0         0          0            0
               7,250             7,500     58             38              18            0           0         0          0            0
               7,500             7,750     63             43              23            3           0         0          0            0
               7,750             8,000     68             48              28            8           0         0          0            0
               8,000             8,250     73             53              33           13           0         0          0            0
               8,250             8,500     78             58              38           18           0         0          0            0
               8,500             8,750     83             63              43           23           3         0          0            0
               8,750             9,000     88             68              48           28           8         0          0            0
Louisiana Administrative Code               December 2011            64
                                                    Title 61, Part I

                                     Single or Married Filing Separately Filing Status
    If your Louisiana
     tax table income:                              And the total exemptions claimed is:
At Least         Less Than       1              2             3            4             5             6     7            8
                                                                    Your Louisiana tax is:
     9,000             9,250   93              73              53         33             13            0     0            0
     9,250             9,500   98              78              58         38             18            0     0            0
     9,500             9,750   103             83              63         43             23            3     0            0
     9,750            10,000   108             88              68         48             28            8     0            0
    10,000            10,250   113             93              73         53             33        13        0            0
    10,250            10,500   118             98              78         58             38        18        0            0
    10,500            10,750   123            103              83         63             43        23        3            0
    10,750            11,000   128            108              88         68             48        28        8            0
    11,000            11,250   133            113              93         73             53        33      13             0
    11,250            11,500   138            118              98         78             58        38      18             0
    11,500            11,750   143            123           103           83             63        43      23             3
    11,750            12,000   148            128           108           88             68        48      28             8
    12,000            12,250   153            133           113           93             73        53      33            13
    12,250            12,500   158            138           118           98             78        58      38            18
    12,500            12,750   165            145           125          105             85        65      45            25
    12,750            13,000   175            155           135          115             95        75      55            35
    13,000            13,250   185            165           145          125             105       85      65            45
    13,250            13,500   195            175           155          135             115       95      75            55
    13,500            13,750   205            185           165          145             125      105      85            65
    13,750            14,000   215            195           175          155             135      115      95            75
    14,000            14,250   225            205           185          165             145      125      105           85
    14,250            14,500   235            215           195          175             155      135      115           95
    14,500            14,750   245            225           205          185             165      145      125          105
    14,750            15,000   255            235           215          195             175      155      135          115
    15,000            15,250   265            245           225          205             185      165      145          125
    15,250            15,500   275            255           235          215             195      175      155          135
    15,500            15,750   285            265           245          225             205      185      165          145
    15,750            16,000   295            275           255          235             215      195      175          155
    16,000            16,250   305            285           265          245             225      205      185          165
    16,250            16,500   315            295           275          255             235      215      195          175
    16,500            16,750   325            305           285          265             245      225      205          185
    16,750            17,000   335            315           295          275             255      235      215          195
    17,000            17,250   345            325           305          285             265      245      225          205
    17,250            17,500   355            335           315          295             275      255      235          215
    17,500            17,750   365            345           325          305             285      265      245          225
    17,750            18,000   375            355           335          315             295      275      255          235
    18,000            18,250   385            365           345          325             305      285      265          245
    18,250            18,500   395            375           355          335             315      295      275          255
    18,500            18,750   405            385           365          345             325      305      285          265
    18,750            19,000   415            395           375          355             335      315      295          275
    19,000            19,250   425            405           385          365             345      325      305          285
    19,250            19,500   435            415           395          375             355      335      315          295
    19,500            19,750   445            425           405          385             365      345      325          305
    19,750            20,000   455            435           415          395             375      355      335          315
    20,000            20,250   465            445           425          405             385      365      345          325

                                                          65           Louisiana Administrative Code             December 2011
                                                   REVENUE AND TAXATION
                                               Single or Married Filing Separately Filing Status
              If your Louisiana
               tax table income:                              And the total exemptions claimed is:
          At Least         Less Than       1              2             3            4             5       6     7     8
                                                                              Your Louisiana tax is:
              20,250            20,500   475            455           435          415             395   375   355   335
              20,500            20,750   485            465           445          425             405   385   365   345
              20,750            21,000   495            475           455          435             415   395   375   355
              21,000            21,250   505            485           465          445             425   405   385   365
              21,250            21,500   515            495           475          455             435   415   395   375
              21,500            21,750   525            505           485          465             445   425   405   385
              21,750            22,000   535            515           495          475             455   435   415   395
              22,000            22,250   545            525           505          485             465   445   425   405
              22,250            22,500   555            535           515          495             475   455   435   415
              22,500            22,750   565            545           525          505             485   465   445   425
              22,750            23,000   575            555           535          515             495   475   455   435
              23,000            23,250   585            565           545          525             505   485   465   445
              23,250            23,500   595            575           555          535             515   495   475   455
              23,500            23,750   605            585           565          545             525   505   485   465
              23,750            24,000   615            595           575          555             535   515   495   475
              24,000            24,250   625            605           585          565             545   525   505   485
              24,250            24,500   635            615           595          575             555   535   515   495
              24,500            24,750   645            625           605          585             565   545   525   505
              24,750            25,000   655            635           615          595             575   555   535   515
              25,000            25,250   665            645           625          605             585   565   545   525
              25,250            25,500   675            655           635          615             595   575   555   535
              25,500            25,750   685            665           645          625             605   585   565   545
              25,750            26,000   695            675           655          635             615   595   575   555
              26,000            26,250   705            685           665          645             625   605   585   565
              26,250            26,500   715            695           675          655             635   615   595   575
              26,500            26,750   725            705           685          665             645   625   605   585
              26,750            27,000   735            715           695          675             655   635   615   595
              27,000            27,250   745            725           705          685             665   645   625   605
              27,250            27,500   755            735           715          695             675   655   635   615
              27,500            27,750   765            745           725          705             685   665   645   625
              27,750            28,000   775            755           735          715             695   675   655   635
              28,000            28,250   785            765           745          725             705   685   665   645
              28,250            28,500   795            775           755          735             715   695   675   655
              28,500            28,750   805            785           765          745             725   705   685   665
              28,750            29,000   815            795           775          755             735   715   695   675
              29,000            29,250   825            805           785          765             745   725   705   685
              29,250            29,500   835            815           795          775             755   735   715   695
              29,500            29,750   845            825           805          785             765   745   725   705
              29,750            30,000   855            835           815          795             775   755   735   715
              30,000            30,250   865            845           825          805             785   765   745   725
              30,250            30,500   875            855           835          815             795   775   755   735
              30,500            30,750   885            865           845          825             805   785   765   745
              30,750            31,000   895            875           855          835             815   795   775   755
              31,000            31,250   905            885           865          845             825   805   785   765
              31,250            31,500   915            895           875          855             835   815   795   775
              31,500            31,750   925            905           885          865             845   825   805   785

Louisiana Administrative Code             December 2011             66
                                                      Title 61, Part I

                                       Single or Married Filing Separately Filing Status
    If your Louisiana
     tax table income:                                And the total exemptions claimed is:
At Least         Less Than        1               2             3            4             5             6       7            8
                                                                      Your Louisiana tax is:
    31,750            32,000    935             915           895          875             855      835       815           795
    32,000            32,250    945             925           905          885             865      845       825           805
    32,250            32,500    955             935           915          895             875      855       835           815
    32,500            32,750    965             945           925          905             885      865       845           825
    32,750            33,000    975             955           935          915             895      875       855           835
    33,000            33,250    985             965           945          925             905      885       865           845
    33,250            33,500    995             975           955          935             915      895       875           855
    33,500            33,750   1,005            985           965          945             925      905       885           865
    33,750            34,000   1,015            995           975          955             935      915       895           875
    34,000            34,250   1,025          1,005           985          965             945      925       905           885
    34,250            34,500   1,035          1,015           995          975             955      935       915           895
    34,500            34,750   1,045          1,025         1,005          985             965      945       925           905
    34,750            35,000   1,055          1,035         1,015          995             975      955       935           915
    35,000            35,250   1,065          1,045         1,025        1,005             985      965       945           925
    35,250            35,500   1,075          1,055         1,035        1,015             995      975       955           935
    35,500            35,750   1,085          1,065         1,045        1,025         1,005        985       965           945
    35,750            36,000   1,095          1,075         1,055        1,035         1,015        995       975           955
    36,000            36,250   1,105          1,085         1,065        1,045         1,025      1,005       985           965
    36,250            36,500   1,115          1,095         1,075        1,055         1,035      1,015       995           975
    36,500            36,750   1,125          1,105         1,085        1,065         1,045      1,025      1,005          985
    36,750            37,000   1,135          1,115         1,095        1,075         1,055      1,035      1,015          995
    37,000            37,250   1,145          1,125         1,105        1,085         1,065      1,045      1,025         1,005
    37,250            37,500   1,155          1,135         1,115        1,095         1,075      1,055      1,035         1,015
    37,500            37,750   1,165          1,145         1,125        1,105         1,085      1,065      1,045         1,025
    37,750            38,000   1,175          1,155         1,135        1,115         1,095      1,075      1,055         1,035
    38,000            38,250   1,185          1,165         1,145        1,125         1,105      1,085      1,065         1,045
    38,250            38,500   1,195          1,175         1,155        1,135         1,115      1,095      1,075         1,055
    38,500            38,750   1,205          1,185         1,165        1,145         1,125      1,105      1,085         1,065
    38,750            39,000   1,215          1,195         1,175        1,155         1,135      1,115      1,095         1,075
    39,000            39,250   1,225          1,205         1,185        1,165         1,145      1,125      1,105         1,085
    39,250            39,500   1,235          1,215         1,195        1,175         1,155      1,135      1,115         1,095
    39,500            39,750   1,245          1,225         1,205        1,185         1,165      1,145      1,125         1,105
    39,750            40,000   1,255          1,235         1,215        1,195         1,175      1,155      1,135         1,115
    40,000            40,250   1,265          1,245         1,225        1,205         1,185      1,165      1,145         1,125
    40,250            40,500   1,275          1,255         1,235        1,215         1,195      1,175      1,155         1,135
    40,500            40,750   1,285          1,265         1,245        1,225         1,205      1,185      1,165         1,145
    40,750            41,000   1,295          1,275         1,255        1,235         1,215      1,195      1,175         1,155
    41,000            41,250   1,305          1,285         1,265        1,245         1,225      1,205      1,185         1,165
    41,250            41,500   1,315          1,295         1,275        1,255         1,235      1,215      1,195         1,175
    41,500            41,750   1,325          1,305         1,285        1,265         1,245      1,225      1,205         1,185
    41,750            42,000   1,335          1,315         1,295        1,275         1,255      1,235      1,215         1,195
    42,000            42,250   1,345          1,325         1,305        1,285         1,265      1,245      1,225         1,205
    42,250            42,500   1,355          1,335         1,315        1,295         1,275      1,255      1,235         1,215
    42,500            42,750   1,365          1,345         1,325        1,305         1,285      1,265      1,245         1,225
    42,750            43,000   1,375          1,355         1,335        1,315         1,295      1,275      1,255         1,235

                                                            67           Louisiana Administrative Code               December 2011
                                                                REVENUE AND TAXATION
                                                         Single or Married Filing Separately Filing Status
              If your Louisiana
               tax table income:                                         And the total exemptions claimed is:
          At Least         Less Than                 1              2              3            4             5            6            7          8
                                                                                         Your Louisiana tax is:
              43,000            43,250           1,385           1,365         1,345          1,325        1,305        1,285       1,265       1,245
              43,250            43,500           1,395           1,375         1,355          1,335        1,315        1,295       1,275       1,255
              43,500            43,750           1,405           1,385         1,365          1,345        1,325        1,305       1,285       1,265
              43,750            44,000           1,415           1,395         1,375          1,355        1,335        1,315       1,295       1,275
              44,000            44,250           1,425           1,405         1,385          1,365        1,345        1,325       1,305       1,285
              44,250            44,500           1,435           1,415         1,395          1,375        1,355        1,335       1,315       1,295
              44,500            44,750           1,445           1,425         1,405          1,385        1,365        1,345       1,325       1,305
              44,750            45,000           1,455           1,435         1,415          1,395        1,375        1,355       1,335       1,315
              45,000            45,250           1,465           1,445         1,425          1,405        1,385        1,365       1,345       1,325
              45,250            45,500           1,475           1,455         1,435          1,415        1,395        1,375       1,355       1,335
              45,500            45,750           1,485           1,465         1,445          1,425        1,405        1,385       1,365       1,345
              45,750            46,000           1,495           1,475         1,455          1,435        1,415        1,395       1,375       1,355
              46,000            46,250           1,505           1,485         1,465          1,445        1,425        1,405       1,385       1,365
              46,250            46,500           1,515           1,495         1,475          1,455        1,435        1,415       1,395       1,375
              46,500            46,750           1,525           1,505         1,485          1,465        1,445        1,425       1,405       1,385
              46,750            47,000           1,535           1,515         1,495          1,475        1,455        1,435       1,415       1,395
              47,000            47,250           1,545           1,525         1,505          1,485        1,465        1,445       1,425       1,405
              47,250            47,500           1,555           1,535         1,515          1,495        1,475        1,455       1,435       1,415
              47,500            47,750           1,565           1,545         1,525          1,505        1,485        1,465       1,445       1,425
              47,750            48,000           1,575           1,555         1,535          1,515        1,495        1,475       1,455       1,435
              48,000            48,250           1,585           1,565         1,545          1,525        1,505        1,485       1,465       1,445
              48,250            48,500           1,595           1,575         1,555          1,535        1,515        1,495       1,475       1,455
              48,500            48,750           1,605           1,585         1,565          1,545        1,525        1,505       1,485       1,465
              48,750            49,000           1,615           1,595         1,575          1,555        1,535        1,515       1,495       1,475
              49,000            49,250           1,625           1,605         1,585          1,565        1,545        1,525       1,505       1,485
              49,250            49,500           1,635           1,615         1,595          1,575        1,555        1,535       1,515       1,495
              49,500            49,750           1,645           1,625         1,605          1,585        1,565        1,545       1,525       1,505
              49,750            50,000           1,655           1,635         1,615          1,595        1,575        1,555       1,535       1,515
              50,000            50,250           1,668           1,648         1,628          1,608        1,588        1,568       1,548       1,528
              50,250            50,500           1,683           1,663         1,643          1,623        1,603        1,583       1,563       1,543
              50,500            50,750           1,698           1,678         1,658          1,638        1,618        1,598       1,578       1,558
              50,750            51,000           1,713           1,693         1,673          1,653        1,633        1,613       1,593       1,573




                                               Plus 6% of Tax Table Income in Excess of $51,000



                                               Married Filing Jointly or Qualifying Widow(er) Filing Status
                 If your Louisiana
                 tax table income:                                             And the total exemptions claimed is:
             At Least        Less Than                      2            3            4              5              6           7           8
                                                                                       Your Louisianan tax is:
                       0               9,000                0            0               0             0           0            0           0
                   9,000               9,250                3            0               0             0           0            0           0
                   9,250               9,500                8            0               0             0           0            0           0
                   9,500               9,750               13            0               0             0           0            0           0

Louisiana Administrative Code                        December 2011             68
                                                   Title 61, Part I

                              Married Filing Jointly or Qualifying Widow(er) Filing Status
    If your Louisiana
    tax table income:                                      And the total exemptions claimed is:
At Least        Less Than                2          3             4              5              6        7       8
                                                                Your Louisianan tax is:
      9,750          10,000             18          0              0             0             0         0       0
     10,000          10,250             23          3              0             0             0         0       0
     10,250          10,500             28          8              0             0             0         0       0
     10,500          10,750             33         13              0             0             0         0       0
     10,750          11,000             38         18              0             0             0         0       0
     11,000          11,250             43         23              3             0             0         0       0
     11,250          11,500             48         28              8             0             0         0       0
     11,500          11,750             53         33            13              0             0         0       0
     11,750          12,000             58         38            18              0             0         0       0
     12,000          12,250             63         43            23              3             0         0       0
     12,250          12,500             68         48            28              8             0         0       0
     12,500          12,750             73         53            33             13             0         0       0
     12,750          13,000             78         58            38             18             0         0       0


                              Married Filing Jointly Or Qualifying Widow(er) Filing Status
    If your Louisiana
    tax table income:                                      And the total exemptions claimed is:
At Least        Less Than                2          3             4              5              6        7       8
                                                                Your Louisianan tax is:
     13,000          13,250             83         63            43             23             3         0       0
     13,250          13,500             88         68            48             28             8         0       0
     13,500          13,750             93         73            53             33            13         0       0
     13,750          14,000             98         78            58             38            18         0       0
     14,000          14,250            103         83            63             43            23         3       0
     14,250          14,500            108         88            68             48            28         8       0
     14,500          14,750            113         93            73             53            33       13        0
     14,750          15,000            118         98            78             58            38       18        0
     15,000          15,250            123        103            83             63            43       23        3
     15,250          15,500            128        108            88             68            48       28        8
     15,500          15,750            133        113            93             73            53       33       13
     15,750          16,000            138        118            98             78            58       38       18
     16,000          16,250            143        123           103             83            63       43       23
     16,250          16,500            148        128           108             88            68       48       28
     16,500          16,750            153        133           113             93            73       53       33
     16,750          17,000            158        138           118             98            78       58       38
     17,000          17,250            163        143           123            103            83       63       43
     17,250          17,500            168        148           128            108            88       68       48
     17,500          17,750            173        153           133            113            93       73       53
     17,750          18,000            178        158           138            118            98       78       58
     18,000          18,250            183        163           143            123           103       83       63
     18,250          18,500            188        168           148            128           108       88       68
     18,500          18,750            193        173           153            133           113       93       73
     18,750          19,000            198        178           158            138           118       98       78
     19,000          19,250            203        183           163            143           123       103      83
     19,250          19,500            208        188           168            148           128       108      88
     19,500          19,750            213        193           173            153           133       113      93

                                                          69           Louisiana Administrative Code         December 2011
                                                          REVENUE AND TAXATION
                                           Married Filing Jointly Or Qualifying Widow(er) Filing Status
                 If your Louisiana
                 tax table income:                                      And the total exemptions claimed is:
             At Least        Less Than                2          3             4              5              6     7     8
                                                                             Your Louisianan tax is:
                  19,750          20,000            218        198           178            158           138    118   98
                  20,000          20,250            223        203           183            163           143    123   103
                  20,250          20,500            228        208           188            168           148    128   108
                  20,500          20,750            233        213           193            173           153    133   113
                  20,750          21,000            238        218           198            178           158    138   118
                  21,000          21,250            243        223           203            183           163    143   123
                  21,250          21,500            248        228           208            188           168    148   128
                  21,500          21,750            253        233           213            193           173    153   133
                  21,750          22,000            258        238           218            198           178    158   138
                  22,000          22,250            263        243           223            203           183    163   143
                  22,250          22,500            268        248           228            208           188    168   148
                  22,500          22,750            273        253           233            213           193    173   153
                  22,750          23,000            278        258           238            218           198    178   158
                  23,000          23,250            283        263           243            223           203    183   163
                  23,250          23,500            288        268           248            228           208    188   168
                  23,500          23,750            293        273           253            233           213    193   173
                  23,750          24,000            298        278           258            238           218    198   178
                  24,000          24,250            303        283           263            243           223    203   183
                  24,250          24,500            308        288           268            248           228    208   188
                  24,500          24,750            313        293           273            253           233    213   193
                  24,750          25,000            318        298           278            258           238    218   198
                  25,000          25,250            325        305           285            265           245    225   205
                  25,250          25,500            335        315           295            275           255    235   215
                  25,500          25,750            345        325           305            285           265    245   225
                  25,750          26,000            355        335           315            295           275    255   235
                  26,000          26,250            365        345           325            305           285    265   245
                  26,250          26,500            375        355           335            315           295    275   255
                  26,500          26,750            385        365           345            325           305    285   265
                  26,750          27,000            395        375           355            335           315    295   275
                  27,000          27,250            405        385           365            345           325    305   285
                  27,250          27,500            415        395           375            355           335    315   295
                  27,500          27,750            425        405           385            365           345    325   305


                                           Married Filing Jointly Or Qualifying Widow(er) Filing Status
                 If your Louisiana
                 tax table income:                                      And the total exemptions claimed is:
             At Least        Less Than                2          3             4              5              6     7     8
                                                                             Your Louisianan tax is:
                  27,750          28,000            435        415           395            375           355    335   315
                  28,000          28,250            445        425           405            385           365    345   325
                  28,250          28,500            455        435           415            395           375    355   335
                  28,500          28,750            465        445           425            405           385    365   345
                  28,750          29,000            475        455           435            415           395    375   355
                  29,000          29,250            485        465           445            425           405    385   365
                  29,250          29,500            495        475           455            435           415    395   375
                  29,500          29,750            505        485           465            445           425    405   385
                  29,750          30,000            515        495           475            455           435    415   395
Louisiana Administrative Code                    December 2011         70
                                                   Title 61, Part I

                              Married Filing Jointly Or Qualifying Widow(er) Filing Status
    If your Louisiana
    tax table income:                                      And the total exemptions claimed is:
At Least        Less Than                2          3             4              5              6       7       8
                                                                Your Louisianan tax is:
     30,000          30,250            525        505           485            465           445      425     405
     30,250          30,500            535        515           495            475           455      435     415
     30,500          30,750            545        525           505            485           465      445     425
     30,750          31,000            555        535           515            495           475      455     435
     31,000          31,250            565        545           525            505           485      465     445
     31,250          31,500            575        555           535            515           495      475     455
     31,500          31,750            585        565           545            525           505      485     465
     31,750          32,000            595        575           555            535           515      495     475
     32,000          32,250            605        585           565            545           525      505     485
     32,250          32,500            615        595           575            555           535      515     495
     32,500          32,750            625        605           585            565           545      525     505
     32,750          33,000            635        615           595            575           555      535     515
     33,000          33,250            645        625           605            585           565      545     525
     33,250          33,500            655        635           615            595           575      555     535
     33,500          33,750            665        645           625            605           585      565     545
     33,750          34,000            675        655           635            615           595      575     555
     34,000          34,250            685        665           645            625           605      585     565
     34,250          34,500            695        675           655            635           615      595     575
     34,500          34,750            705        685           665            645           625      605     585
     34,750          35,000            715        695           675            655           635      615     595
     35,000          35,250            725        705           685            665           645      625     605
     35,250          35,500            735        715           695            675           655      635     615
     35,500          35,750            745        725           705            685           665      645     625
     35,750          36,000            755        735           715            695           675      655     635
     36,000          36,250            765        745           725            705           685      665     645
     36,250          36,500            775        755           735            715           695      675     655
     36,500          36,750            785        765           745            725           705      685     665
     36,750          37,000            795        775           755            735           715      695     675
     37,000          37,250            805        785           765            745           725      705     685
     37,250          37,500            815        795           775            755           735      715     695
     37,500          37,750            825        805           785            765           745      725     705
     37,750          38,000            835        815           795            775           755      735     715
     38,000          38,250            845        825           805            785           765      745     725
     38,250          38,500            855        835           815            795           775      755     735
     38,500          38,750            865        845           825            805           785      765     745
     38,750          39,000            875        855           835            815           795      775     755
     39,000          39,250            885        865           845            825           805      785     765
     39,250          39,500            895        875           855            835           815      795     775
     39,500          39,750            905        885           865            845           825      805     785
     39,750          40,000            915        895           875            855           835      815     795
     40,000          40,250            925        905           885            865           845      825     805
     40,250          40,500            935        915           895            875           855      835     815
     40,500          40,750            945        925           905            885           865      845     825
     40,750          41,000            955        935           915            895           875      855     835
     41,000          41,250            965        945           925            905           885      865     845

                                                          71          Louisiana Administrative Code         December 2011
                                                            REVENUE AND TAXATION
                                             Married Filing Jointly Or Qualifying Widow(er) Filing Status
                 If your Louisiana
                 tax table income:                                        And the total exemptions claimed is:
             At Least        Less Than                  2          3             4              5              6         7      8
                                                                               Your Louisianan tax is:
                  41,250            41,500            975        955           935            915            895      875     855
                  41,500            41,750            985        965           945            925            905      885     865
                  41,750            42,000            995        975           955            935            915      895     875
                  42,000            42,250          1,005        985           965            945            925      905     885
                  42,250            42,500          1,015        995           975            955            935      915     895


                                             Married Filing Jointly Or Qualifying Widow(er) Filing Status
                If your Louisiana
                tax table income:                                         And the total exemptions claimed is:
             At Least      Less Than                    2          3             4            5                  6       7      8
                                                                               Your Louisianan tax is:
                  42,500            42,750          1,025      1,005           985            965            945      925     905
                  42,750            43,000          1,035      1,015           995            975            955      935     915
                  43,000            43,250          1,045      1,025          1,005           985            965      945     925
                  43,250            43,500          1,055      1,035          1,015           995            975      955     935
                  43,500            43,750          1,065      1,045          1,025         1,005            985      965     945
                  43,750            44,000          1,075      1,055          1,035         1,015            995      975     955
                  44,000            44,250          1,085      1,065          1,045         1,025           1,005     985     965
                  44,250            44,500          1,095      1,075          1,055         1,035           1,015     995     975
                  44,500            44,750          1,105      1,085          1,065         1,045           1,025    1,005    985
                  44,750            45,000          1,115      1,095          1,075         1,055           1,035    1,015    995
                  45,000            45,250          1,125      1,105          1,085         1,065           1,045    1,025   1,005
                  45,250            45,500          1,135      1,115          1,095         1,075           1,055    1,035   1,015
                  45,500            45,750          1,145      1,125          1,105         1,085           1,065    1,045   1,025
                  45,750            46,000          1,155      1,135          1,115         1,095           1,075    1,055   1,035
                  46,000            46,250          1,165      1,145          1,125         1,105           1,085    1,065   1,045
                  46,250            46,500          1,175      1,155          1,135         1,115           1,095    1,075   1,055
                  46,500            46,750          1,185      1,165          1,145         1,125           1,105    1,085   1,065
                  46,750            47,000          1,195      1,175          1,155         1,135           1,115    1,095   1,075
                  47,000            47,250          1,205      1,185          1,165         1,145           1,125    1,105   1,085
                  47,250            47,500          1,215      1,195          1,175         1,155           1,135    1,115   1,095
                  47,500            47,750          1,225      1,205          1,185         1,165           1,145    1,125   1,105
                  47,750            48,000          1,235      1,215          1,195         1,175           1,155    1,135   1,115
                  48,000            48,250          1,245      1,225          1,205         1,185           1,165    1,145   1,125
                  48,250            48,500          1,255      1,235          1,215         1,195           1,175    1,155   1,135
                  48,500            48,750          1,265      1,245          1,225         1,205           1,185    1,165   1,145
                  48,750            49,000          1,275      1,255          1,235         1,215           1,195    1,175   1,155
                  49,000            49,250          1,285      1,265          1,245         1,225           1,205    1,185   1,165
                  49,250            49,500          1,295      1,275          1,255         1,235           1,215    1,195   1,175
                  49,500            49,750          1,305      1,285          1,265         1,245           1,225    1,205   1,185
                  49,750            50,000          1,315      1,295          1,275         1,255           1,235    1,215   1,195
                  50,000            50,250          1,325      1,305          1,285         1,265           1,245    1,225   1,205
                  50,250            50,500          1,335      1,315          1,295         1,275           1,255    1,235   1,215
                  50,500            50,750          1,345      1,325          1,305         1,285           1,265    1,245   1,225
                  50,750            51,000          1,355      1,335          1,315         1,295           1,275    1,255   1,235
                  51,000            51,250          1,365      1,345          1,325         1,305           1,285    1,265   1,245
                  51,250            51,500          1,375      1,355          1,335         1,315           1,295    1,275   1,255
Louisiana Administrative Code                      December 2011         72
                                                     Title 61, Part I

                                Married Filing Jointly Or Qualifying Widow(er) Filing Status
   If your Louisiana
   tax table income:                                         And the total exemptions claimed is:
At Least      Less Than                    2          3             4            5                  6        7       8
                                                                  Your Louisianan tax is:
     51,500            51,750          1,385      1,365          1,345         1,325           1,305     1,285    1,265
     51,750            52,000          1,395      1,375          1,355         1,335           1,315     1,295    1,275
     52,000            52,250          1,405      1,385          1,365         1,345           1,325     1,305    1,285
     52,250            52,500          1,415      1,395          1,375         1,355           1,335     1,315    1,295
     52,500            52,750          1,425      1,405          1,385         1,365           1,345     1,325    1,305
     52,750            53,000          1,435      1,415          1,395         1,375           1,355     1,335    1,315
     53,000            53,250          1,445      1,425          1,405         1,385           1,365     1,345    1,325
     53,250            53,500          1,455      1,435          1,415         1,395           1,375     1,355    1,335
     53,500            53,750          1,465      1,445          1,425         1,405           1,385     1,365    1,345
     53,750            54,000          1,475      1,455          1,435         1,415           1,395     1,375    1,355
     54,000            54,250          1,485      1,465          1,445         1,425           1,405     1,385    1,365
     54,250            54,500          1,495      1,475          1,455         1,435           1,415     1,395    1,375
     54,500            54,750          1,505      1,485          1,465         1,445           1,425     1,405    1,385
     54,750            55,000          1,515      1,495          1,475         1,455           1,435     1,415    1,395
     55,000            55,250          1,525      1,505          1,485         1,465           1,445     1,425    1,405
     55,250            55,500          1,535      1,515          1,495         1,475           1,455     1,435    1,415
     55,500            55,750          1,545      1,525          1,505         1,485           1,465     1,445    1,425
     55,750            56,000          1,555      1,535          1,515         1,495           1,475     1,455    1,435
     56,000            56,250          1,565      1,545          1,525         1,505           1,485     1,465    1,445
     56,250            56,500          1,575      1,555          1,535         1,515           1,495     1,475    1,455
     56,500            56,750          1,585      1,565          1,545         1,525           1,505     1,485    1,465
     56,750            57,000          1,595      1,575          1,555         1,535           1,515     1,495    1,475
     57,000            57,250          1,605      1,585          1,565         1,545           1,525     1,505    1,485


                                Married Filing Jointly Or Qualifying Widow(er) Filing Status
   If your Louisiana
   tax table income:                                         And the total exemptions claimed is:
At Least      Less Than                    2          3             4            5                  6        7       8
                                                                  Your Louisianan tax is:
     57,250            57,500          1,615      1,595          1,575         1,555           1,535     1,515    1,495
     57,500            57,750          1,625      1,605          1,585         1,565           1,545     1,525    1,505
     57,750            58,000          1,635      1,615          1,595         1,575           1,555     1,535    1,515
     58,000            58,250          1,645      1,625          1,605         1,585           1,565     1,545    1,525
     58,250            58,500          1,655      1,635          1,615         1,595           1,575     1,555    1,535
     58,500            58,750          1,665      1,645          1,625         1,605           1,585     1,565    1,545
     58,750            59,000          1,675      1,655          1,635         1,615           1,595     1,575    1,555
     59,000            59,250          1,685      1,665          1,645         1,625           1,605     1,585    1,565
     59,250            59,500          1,695      1,675          1,655         1,635           1,615     1,595    1,575
     59,500            59,750          1,705      1,685          1,665         1,645           1,625     1,605    1,585
     59,750            60,000          1,715      1,695          1,675         1,655           1,635     1,615    1,595
     60,000            60,250          1,725      1,705          1,685         1,665           1,645     1,625    1,605
     60,250            60,500          1,735      1,715          1,695         1,675           1,655     1,635    1,615
     60,500            60,750          1,745      1,725          1,705         1,685           1,665     1,645    1,625
     60,750            61,000          1,755      1,735          1,715         1,695           1,675     1,655    1,635
     61,000            61,250          1,765      1,745          1,725         1,705           1,685     1,665    1,645
     61,250            61,500          1,775      1,755          1,735         1,715           1,695     1,675    1,655
                                                            73           Louisiana Administrative Code           December 2011
                                                            REVENUE AND TAXATION
                                             Married Filing Jointly Or Qualifying Widow(er) Filing Status
                If your Louisiana
                tax table income:                                         And the total exemptions claimed is:
             At Least      Less Than                    2          3             4            5                  6       7      8
                                                                               Your Louisianan tax is:
                  61,500            61,750          1,785      1,765          1,745         1,725           1,705    1,685   1,665
                  61,750            62,000          1,795      1,775          1,755         1,735           1,715    1,695   1,675
                  62,000            62,250          1,805      1,785          1,765         1,745           1,725    1,705   1,685
                  62,250            62,500          1,815      1,795          1,775         1,755           1,735    1,715   1,695
                  62,500            62,750          1,825      1,805          1,785         1,765           1,745    1,725   1,705
                  62,750            63,000          1,835      1,815          1,795         1,775           1,755    1,735   1,715
                  63,000            63,250          1,845      1,825          1,805         1,785           1,765    1,745   1,725
                  63,250            63,500          1,855      1,835          1,815         1,795           1,775    1,755   1,735
                  63,500            63,750          1,865      1,845          1,825         1,805           1,785    1,765   1,745
                  63,750            64,000          1,875      1,855          1,835         1,815           1,795    1,775   1,755
                  64,000            64,250          1,885      1,865          1,845         1,825           1,805    1,785   1,765
                  64,250            64,500          1,895      1,875          1,855         1,835           1,815    1,795   1,775
                  64,500            64,750          1,905      1,885          1,865         1,845           1,825    1,805   1,785
                  64,750            65,000          1,915      1,895          1,875         1,855           1,835    1,815   1,795
                  65,000            65,250          1,925      1,905          1,885         1,865           1,845    1,825   1,805
                  65,250            65,500          1,935      1,915          1,895         1,875           1,855    1,835   1,815
                  65,500            65,750          1,945      1,925          1,905         1,885           1,865    1,845   1,825
                  65,750            66,000          1,955      1,935          1,915         1,895           1,875    1,855   1,835
                  66,000            66,250          1,965      1,945          1,925         1,905           1,885    1,865   1,845
                  66,250            66,500          1,975      1,955          1,935         1,915           1,895    1,875   1,855
                  66,500            66,750          1,985      1,965          1,945         1,925           1,905    1,885   1,865
                  66,750            67,000          1,995      1,975          1,955         1,935           1,915    1,895   1,875
                  67,000            67,250          2,005      1,985          1,965         1,945           1,925    1,905   1,885
                  67,250            67,500          2,015      1,995          1,975         1,955           1,935    1,915   1,895
                  67,500            67,750          2,025      2,005          1,985         1,965           1,945    1,925   1,905
                  67,750            68,000          2,035      2,015          1,995         1,975           1,955    1,935   1,915
                  68,000            68,250          2,045      2,025          2,005         1,985           1,965    1,945   1,925
                  68,250            68,500          2,055      2,035          2,015         1,995           1,975    1,955   1,935
                  68,500            68,750          2,065      2,045          2,025         2,005           1,985    1,965   1,945
                  68,750            69,000          2,075      2,055          2,035         2,015           1,995    1,975   1,955
                  69,000            69,250          2,085      2,065          2,045         2,025           2,005    1,985   1,965
                  69,250            69,500          2,095      2,075          2,055         2,035           2,015    1,995   1,975
                  69,500            69,750          2,105      2,085          2,065         2,045           2,025    2,005   1,985
                  69,750            70,000          2,115      2,095          2,075         2,055           2,035    2,015   1,995
                  70,000            70,250          2,125      2,105          2,085         2,065           2,045    2,025   2,005
                  70,250            70,500          2,135      2,115          2,095         2,075           2,055    2,035   2,015
                  70,500            70,750          2,145      2,125          2,105         2,085           2,065    2,045   2,025
                  70,750            71,000          2,155      2,135          2,115         2,095           2,075    2,055   2,035
                  71,000            71,250          2,165      2,145          2,125         2,105           2,085    2,065   2,045
                  71,250            71,500          2,175      2,155          2,135         2,115           2,095    2,075   2,055
                  71,500            71,750          2,185      2,165          2,145         2,125           2,105    2,085   2,065
                  71,750            72,000          2,195      2,175          2,155         2,135           2,115    2,095   2,075


                                             Married Filing Jointly Or Qualifying Widow(er) Filing Status
                If your Louisiana
                tax table income:                                         And the total exemptions claimed is:

Louisiana Administrative Code                      December 2011         74
                                       Title 61, Part I

At Least      Less Than         2       3            4            5              6            7       8
                                                   Your Louisianan tax is:
     72,000         72,250   2,205   2,185        2,165         2,145        2,125        2,105    2,085
     72,250         72,500   2,215   2,195        2,175         2,155        2,135        2,115    2,095
     72,500         72,750   2,225   2,205        2,185         2,165        2,145        2,125    2,105
     72,750         73,000   2,235   2,215        2,195         2,175        2,155        2,135    2,115
     73,000         73,250   2,245   2,225        2,205         2,185        2,165        2,145    2,125
     73,250         73,500   2,255   2,235        2,215         2,195        2,175        2,155    2,135
     73,500         73,750   2,265   2,245        2,225         2,205        2,185        2,165    2,145
     73,750         74,000   2,275   2,255        2,235         2,215        2,195        2,175    2,155
     74,000         74,250   2,285   2,265        2,245         2,225        2,205        2,185    2,165
     74,250         74,500   2,295   2,275        2,255         2,235        2,215        2,195    2,175
     74,500         74,750   2,305   2,285        2,265         2,245        2,225        2,205    2,185
     74,750         75,000   2,315   2,295        2,275         2,255        2,235        2,215    2,195
     75,000         75,250   2,325   2,305        2,285         2,265        2,245        2,225    2,205
     75,250         75,500   2,335   2,315        2,295         2,275        2,255        2,235    2,215
     75,500         75,750   2,345   2,325        2,305         2,285        2,265        2,245    2,225
     75,750         76,000   2,355   2,335        2,315         2,295        2,275        2,255    2,235
     76,000         76,250   2,365   2,345        2,325         2,305        2,285        2,265    2,245
     76,250         76,500   2,375   2,355        2,335         2,315        2,295        2,275    2,255
     76,500         76,750   2,385   2,365        2,345         2,325        2,305        2,285    2,265
     76,750         77,000   2,395   2,375        2,355         2,335        2,315        2,295    2,275
     77,000         77,250   2,405   2,385        2,365         2,345        2,325        2,305    2,285
     77,250         77,500   2,415   2,395        2,375         2,355        2,335        2,315    2,295
     77,500         77,750   2,425   2,405        2,385         2,365        2,345        2,325    2,305
     77,750         78,000   2,435   2,415        2,395         2,375        2,355        2,335    2,315
     78,000         78,250   2,445   2,425        2,405         2,385        2,365        2,345    2,325
     78,250         78,500   2,455   2,435        2,415         2,395        2,375        2,355    2,335
     78,500         78,750   2,465   2,445        2,425         2,405        2,385        2,365    2,345
     78,750         79,000   2,475   2,455        2,435         2,415        2,395        2,375    2,355
     79,000         79,250   2,485   2,465        2,445         2,425        2,405        2,385    2,365
     79,250         79,500   2,495   2,475        2,455         2,435        2,415        2,395    2,375
     79,500         79,750   2,505   2,485        2,465         2,445        2,425        2,405    2,385
     79,750         80,000   2,515   2,495        2,475         2,455        2,435        2,415    2,395
     80,000         80,250   2,525   2,505        2,485         2,465        2,445        2,425    2,405
     80,250         80,500   2,535   2,515        2,495         2,475        2,455        2,435    2,415
     80,500         80,750   2,545   2,525        2,505         2,485        2,465        2,445    2,425
     80,750         81,000   2,555   2,535        2,515         2,495        2,475        2,455    2,435
     81,000         81,250   2,565   2,545        2,525         2,505        2,485        2,465    2,445
     81,250         81,500   2,575   2,555        2,535         2,515        2,495        2,475    2,455
     81,500         81,750   2,585   2,565        2,545         2,525        2,505        2,485    2,465
     81,750         82,000   2,595   2,575        2,555         2,535        2,515        2,495    2,475
     82,000         82,250   2,605   2,585        2,565         2,545        2,525        2,505    2,485
     82,250         82,500   2,615   2,595        2,575         2,555        2,535        2,515    2,495
     82,500         82,750   2,625   2,605        2,585         2,565        2,545        2,525    2,505
     82,750         83,000   2,635   2,615        2,595         2,575        2,555        2,535    2,515
     83,000         83,250   2,645   2,625        2,605         2,585        2,565        2,545    2,525
     83,250         83,500   2,655   2,635        2,615         2,595        2,575        2,555    2,535
     83,500         83,750   2,665   2,645        2,625         2,605        2,585        2,565    2,545
     83,750         84,000   2,675   2,655        2,635         2,615        2,595        2,575    2,555
                                             75           Louisiana Administrative Code           December 2011
                                                            REVENUE AND TAXATION
                                             Married Filing Jointly Or Qualifying Widow(er) Filing Status
                 If your Louisiana
                 tax table income:                                        And the total exemptions claimed is:
             At Least        Less Than                  2          3             4              5              6         7      8
                                                                               Your Louisianan tax is:
                  84,000            84,250          2,685      2,665          2,645         2,625           2,605    2,585   2,565
                  84,250            84,500          2,695      2,675          2,655         2,635           2,615    2,595   2,575
                  84,500            84,750          2,705      2,685          2,665         2,645           2,625    2,605   2,585
                  84,750            85,000          2,715      2,695          2,675         2,655           2,635    2,615   2,595
                  85,000            85,250          2,725      2,705          2,685         2,665           2,645    2,625   2,605
                  85,250            85,500          2,735      2,715          2,695         2,675           2,655    2,635   2,615
                  85,500            85,750          2,745      2,725          2,705         2,685           2,665    2,645   2,625
                  85,750            86,000          2,755      2,735          2,715         2,695           2,675    2,655   2,635
                  86,000            86,250          2,765      2,745          2,725         2,705           2,685    2,665   2,645
                  86,250            86,500          2,775      2,755          2,735         2,715           2,695    2,675   2,655
                  86,500            86,750          2,785      2,765          2,745         2,725           2,705    2,685   2,665


                                             Married Filing Jointly Or Qualifying Widow(er) Filing Status
                If your Louisiana
                tax table income:                                         And the total exemptions claimed is:
             At Least      Less Than                    2          3             4            5                  6       7      8
                                                                               Your Louisianan tax is:
                  86,750            87,000          2,795      2,775          2,755         2,735           2,715    2,695   2,675
                  87,000            87,250          2,805      2,785          2,765         2,745           2,725    2,705   2,685
                  87,250            87,500          2,815      2,795          2,775         2,755           2,735    2,715   2,695
                  87,500            87,750          2,825      2,805          2,785         2,765           2,745    2,725   2,705
                  87,750            88,000          2,835      2,815          2,795         2,775           2,755    2,735   2,715
                  88,000            88,250          2,845      2,825          2,805         2,785           2,765    2,745   2,725
                  88,250            88,500          2,855      2,835          2,815         2,795           2,775    2,755   2,735
                  88,500            88,750          2,865      2,845          2,825         2,805           2,785    2,765   2,745
                  88,750            89,000          2,875      2,855          2,835         2,815           2,795    2,775   2,755
                  89,000            89,250          2,885      2,865          2,845         2,825           2,805    2,785   2,765
                  89,250            89,500          2,895      2,875          2,855         2,835           2,815    2,795   2,775
                  89,500            89,750          2,905      2,885          2,865         2,845           2,825    2,805   2,785
                  89,750            90,000          2,915      2,895          2,875         2,855           2,835    2,815   2,795
                  90,000            90,250          2,925      2,905          2,885         2,865           2,845    2,825   2,805
                  90,250            90,500          2,935      2,915          2,895         2,875           2,855    2,835   2,815
                  90,500            90,750          2,945      2,925          2,905         2,885           2,865    2,845   2,825
                  90,750            91,000          2,955      2,935          2,915         2,895           2,875    2,855   2,835
                  91,000            91,250          2,965      2,945          2,925         2,905           2,885    2,865   2,845
                  91,250            91,500          2,975      2,955          2,935         2,915           2,895    2,875   2,855
                  91,500            91,750          2,985      2,965          2,945         2,925           2,905    2,885   2,865
                  91,750            92,000          2,995      2,975          2,955         2,935           2,915    2,895   2,875
                  92,000            92,250          3,005      2,985          2,965         2,945           2,925    2,905   2,885
                  92,250            92,500          3,015      2,995          2,975         2,955           2,935    2,915   2,895
                  92,500            92,750          3,025      3,005          2,985         2,965           2,945    2,925   2,905
                  92,750            93,000          3,035      3,015          2,995         2,975           2,955    2,935   2,915
                  93,000            93,250          3,045      3,025          3,005         2,985           2,965    2,945   2,925
                  93,250            93,500          3,055      3,035          3,015         2,995           2,975    2,955   2,935
                  93,500            93,750          3,065      3,045          3,025         3,005           2,985    2,965   2,945
                  93,750            94,000          3,075      3,055          3,035         3,015           2,995    2,975   2,955
                  94,000            94,250          3,085      3,065          3,045         3,025           3,005    2,985   2,965
Louisiana Administrative Code                      December 2011         76
                                                               Title 61, Part I

                                     Married Filing Jointly Or Qualifying Widow(er) Filing Status
       If your Louisiana
       tax table income:                                               And the total exemptions claimed is:
   At Least       Less Than                       2             3                4            5                 6            7           8
                                                                               Your Louisianan tax is:
        94,250              94,500             3,095      3,075            3,055              3,035          3,015       2,995        2,975
        94,500              94,750             3,105      3,085            3,065              3,045          3,025       3,005        2,985
        94,750              95,000             3,115      3,095            3,075              3,055          3,035       3,015        2,995
        95,000              95,250             3,125      3,105            3,085              3,065          3,045       3,025        3,005
        95,250              95,500             3,135      3,115            3,095              3,075          3,055       3,035        3,015
        95,500              95,750             3,145      3,125            3,105              3,085          3,065       3,045        3,025
        95,750              96,000             3,155      3,135            3,115              3,095          3,075       3,055        3,035
        96,000              96,250             3,165      3,145            3,125              3,105          3,085       3,065        3,045
        96,250              96,500             3,175      3,155            3,135              3,115          3,095       3,075        3,055
        96,500              96,750             3,185      3,165            3,145              3,125          3,105       3,085        3,065
        96,750              97,000             3,195      3,175            3,155              3,135          3,115       3,095        3,075
        97,000              97,250             3,205      3,185            3,165              3,145          3,125       3,105        3,085
        97,250              97,500             3,215      3,195            3,175              3,155          3,135       3,115        3,095
        97,500              97,750             3,225      3,205            3,185              3,165          3,145       3,125        3,105
        97,750              98,000             3,235      3,215            3,195              3,175          3,155       3,135        3,115
        98,000              98,250             3,245      3,225            3,205              3,185          3,165       3,145        3,125
        98,250              98,500             3,255      3,235            3,215              3,195          3,175       3,155        3,135
        98,500              98,750             3,265      3,245            3,225              3,205          3,185       3,165        3,145
        98,750              99,000             3,275      3,255            3,235              3,215          3,195       3,175        3,155
        99,000              99,250             3,285      3,265            3,245              3,225          3,205       3,185        3,165
        99,250              99,500             3,295      3,275            3,255              3,235          3,215       3,195        3,175
        99,500              99,750             3,305      3,285            3,265              3,245          3,225       3,205        3,185
        99,750         100,000                 3,315      3,295            3,275              3,255          3,235       3,215        3,195
       100,000         100,250                 3,328      3,308            3,288              3,268          3,248       3,228        3,208
       100,250         100,500                 3,343      3,323            3,303              3,283          3,263       3,243        3,223
       100,500         100,750                 3,358      3,338            3,318              3,298          3,278       3,258        3,238
       100,750         101,000                 3,373      3,353            3,333              3,313          3,293       3,273        3,253




                                     Plus 6% of Tax Table Income in Excess of $101,000

                                                       Head Of Household Filing Status
    If your Louisiana
    tax table income:                                          And the total exemptions claimed is:
At Least        Less Than                  1               2              3            4             5               6           7            8
                                                                               Your Louisiana tax is:
         0             9,000               0              0                0              0              0           0           0            0
      9,000            9,250               3              0                0              0              0           0           0            0
      9,250            9,500               8              0                0              0              0           0           0            0
      9,500            9,750              13              0                0              0              0           0           0            0
      9,750           10,000              18              0                0              0              0           0           0            0
    10,000            10,250              23              3                0              0              0           0           0            0
    10,250            10,500              28              8                0              0              0           0           0            0
    10,500            10,750              33             13                0              0              0           0           0            0
    10,750            11,000              38             18                0              0              0           0           0            0
    11,000            11,250              43             23                3              0              0           0           0            0

                                                                      77             Louisiana Administrative Code                   December 2011
                                                REVENUE AND TAXATION
                                                  Head Of Household Filing Status
             If your Louisiana
             tax table income:                            And the total exemptions claimed is:
         At Least        Less Than         1          2              3            4             5     6     7     8
                                                                          Your Louisiana tax is:
              11,250            11,500   48         28                8           0            0      0     0     0
              11,500            11,750   53         33              13            0            0      0     0     0
              11,750            12,000   58         38              18            0            0      0     0     0
              12,000            12,250   63         43              23            3            0      0     0     0
              12,250            12,500   68         48              28            8            0      0     0     0
              12,500            12,750   75         55              35           15            0      0     0     0
              12,750            13,000   85         65              45           25            0      0     0     0
              13,000            13,250   95         75              55           35            5      0     0     0
              13,250            13,500   105        85              65           45           15      0     0     0
              13,500            13,750   115        95              75           55           25      0     0     0
              13,750            14,000   125       105              85           65           35      0     0     0
              14,000            14,250   135       115              95           75           45      5     0     0
              14,250            14,500   145       125             105           85           55    15      0     0
              14,500            14,750   155       135             115           95           65    25      0     0
              14,750            15,000   165       145             125          105           75    35      0     0
              15,000            15,250   175       155             135          115           85    45      5     0
              15,250            15,500   185       165             145          125           95    55    15      0
              15,500            15,750   195       175             155          135          105    65    25      0
              15,750            16,000   205       185             165          145          115    75    35      0
              16,000            16,250   215       195             175          155          125    85    45      5
              16,250            16,500   225       205             185          165          135    95    55    15
              16,500            16,750   235       215             195          175          145    105   65    25
              16,750            17,000   245       225             205          185          155    115   75    35
              17,000            17,250   255       235             215          195          165    125   85    45
              17,250            17,500   265       245             225          205          175    135   95    55
              17,500            17,750   275       255             235          215          185    145   105   65
              17,750            18,000   285       265             245          225          195    155   115   75
              18,000            18,250   295       275             255          235          205    165   125   85
              18,250            18,500   305       285             265          245          215    175   135   95
              18,500            18,750   315       295             275          255          225    185   145   105
              18,750            19,000   325       305             285          265          235    195   155   115
              19,000            19,250   335       315             295          275          245    205   165   125
              19,250            19,500   345       325             305          285          255    215   175   135
              19,500            19,750   355       335             315          295          265    225   185   145
              19,750            20,000   365       345             325          305          275    235   195   155
              20,000            20,250   375       355             335          315          285    245   205   165
              20,250            20,500   385       365             345          325          295    255   215   175
              20,500            20,750   395       375             355          335          305    265   225   185
              20,750            21,000   405       385             365          345          315    275   235   195
              21,000            21,250   415       395             375          355          325    285   245   205
              21,250            21,500   425       405             385          365          335    295   255   215
              21,500            21,750   435       415             395          375          345    305   265   225
              21,750            22,000   445       425             405          385          355    315   275   235
              22,000            22,250   455       435             415          395          365    325   285   245
              22,250            22,500   465       445             425          405          375    335   295   255
              22,500            22,750   475       455             435          415          385    345   305   265

Louisiana Administrative Code              December 2011         78
                                             Title 61, Part I

                                     Head Of Household Filing Status
    If your Louisiana
    tax table income:                        And the total exemptions claimed is:
At Least        Less Than        1       2              3            4             5            6     7            8
                                                             Your Louisiana tax is:
    22,750            23,000   485    465             445          425          395        355      315          275
    23,000            23,250   495    475             455          435          405        365      325          285
    23,250            23,500   505    485             465          445          415        375      335          295


                                     Head Of Household Filing Status
    If your Louisiana
    tax table income:                        And the total exemptions claimed is:
At Least        Less Than        1       2              3            4             5            6     7            8
                                                             Your Louisiana tax is:
    23,500            23,750   515    495             475          455          425        385      345          305
    23,750            24,000   525    505             485          465          435        395      355          315
    24,000            24,250   535    515             495          475          445        405      365          325
    24,250            24,500   545    525             505          485          455        415      375          335
    24,500            24,750   555    535             515          495          465        425      385          345
    24,750            25,000   565    545             525          505          475        435      395          355
    25,000            25,250   575    555             535          515          485        445      405          365
    25,250            25,500   585    565             545          525          495        455      415          375
    25,500            25,750   595    575             555          535          505        465      425          385
    25,750            26,000   605    585             565          545          515        475      435          395
    26,000            26,250   615    595             575          555          525        485      445          405
    26,250            26,500   625    605             585          565          535        495      455          415
    26,500            26,750   635    615             595          575          545        505      465          425
    26,750            27,000   645    625             605          585          555        515      475          435
    27,000            27,250   655    635             615          595          565        525      485          445
    27,250            27,500   665    645             625          605          575        535      495          455
    27,500            27,750   675    655             635          615          585        545      505          465
    27,750            28,000   685    665             645          625          595        555      515          475
    28,000            28,250   695    675             655          635          605        565      525          485
    28,250            28,500   705    685             665          645          615        575      535          495
    28,500            28,750   715    695             675          655          625        585      545          505
    28,750            29,000   725    705             685          665          635        595      555          515
    29,000            29,250   735    715             695          675          645        605      565          525
    29,250            29,500   745    725             705          685          655        615      575          535
    29,500            29,750   755    735             715          695          665        625      585          545
    29,750            30,000   765    745             725          705          675        635      595          555
    30,000            30,250   775    755             735          715          685        645      605          565
    30,250            30,500   785    765             745          725          695        655      615          575
    30,500            30,750   795    775             755          735          705        665      625          585
    30,750            31,000   805    785             765          745          715        675      635          595
    31,000            31,250   815    795             775          755          725        685      645          605
    31,250            31,500   825    805             785          765          735        695      655          615
    31,500            31,750   835    815             795          775          745        705      665          625
    31,750            32,000   845    825             805          785          755        715      675          635
    32,000            32,250   855    835             815          795          765        725      685          645
    32,250            32,500   865    845             825          805          775        735      695          655
    32,500            32,750   875    855             835          815          785        745      705          665

                                                    79          Louisiana Administrative Code             December 2011
                                                 REVENUE AND TAXATION
                                                   Head Of Household Filing Status
             If your Louisiana
             tax table income:                             And the total exemptions claimed is:
         At Least        Less Than           1         2              3            4             5       6       7      8
                                                                           Your Louisiana tax is:
              32,750            33,000    885       865             845          825          795     755     715     675
              33,000            33,250    895       875             855          835          805     765     725     685
              33,250            33,500    905       885             865          845          815     775     735     695
              33,500            33,750    915       895             875          855          825     785     745     705
              33,750            34,000    925       905             885          865          835     795     755     715
              34,000            34,250    935       915             895          875          845     805     765     725
              34,250            34,500    945       925             905          885          855     815     775     735
              34,500            34,750    955       935             915          895          865     825     785     745
              34,750            35,000    965       945             925          905          875     835     795     755
              35,000            35,250    975       955             935          915          885     845     805     765
              35,250            35,500    985       965             945          925          895     855     815     775
              35,500            35,750    995       975             955          935          905     865     825     785
              35,750            36,000   1,005      985             965          945          915     875     835     795
              36,000            36,250   1,015      995             975          955          925     885     845     805
              36,250            36,500   1,025     1,005            985          965          935     895     855     815
              36,500            36,750   1,035     1,015            995          975          945     905     865     825
              36,750            37,000   1,045     1,025          1,005          985          955     915     875     835
              37,000            37,250   1,055     1,035          1,015          995          965     925     885     845
              37,250            37,500   1,065     1,045          1,025        1,005          975     935     895     855
              37,500            37,750   1,075     1,055          1,035        1,015          985     945     905     865
              37,750            38,000   1,085     1,065          1,045        1,025          995     955     915     875
              38,000            38,250   1,095     1,075          1,055        1,035        1,005     965     925     885


                                                   Head Of Household Filing Status
             If your Louisiana
             tax table income:                             And the total exemptions claimed is:
         At Least        Less Than           1         2              3            4             5       6       7      8
                                                                           Your Louisiana tax is:
              38,250            38,500   1,105     1,085          1,065        1,045        1,015     975     935     895
              38,500            38,750   1,115     1,095          1,075        1,055        1,025     985     945     905
              38,750            39,000   1,125     1,105          1,085        1,065        1,035     995     955     915
              39,000            39,250   1,135     1,115          1,095        1,075        1,045    1,005    965     925
              39,250            39,500   1,145     1,125          1,105        1,085        1,055    1,015    975     935
              39,500            39,750   1,155     1,135          1,115        1,095        1,065    1,025    985     945
              39,750            40,000   1,165     1,145          1,125        1,105        1,075    1,035    995     955
              40,000            40,250   1,175     1,155          1,135        1,115        1,085    1,045   1,005    965
              40,250            40,500   1,185     1,165          1,145        1,125        1,095    1,055   1,015    975
              40,500            40,750   1,195     1,175          1,155        1,135        1,105    1,065   1,025    985
              40,750            41,000   1,205     1,185          1,165        1,145        1,115    1,075   1,035    995
              41,000            41,250   1,215     1,195          1,175        1,155        1,125    1,085   1,045   1,005
              41,250            41,500   1,225     1,205          1,185        1,165        1,135    1,095   1,055   1,015
              41,500            41,750   1,235     1,215          1,195        1,175        1,145    1,105   1,065   1,025
              41,750            42,000   1,245     1,225          1,205        1,185        1,155    1,115   1,075   1,035
              42,000            42,250   1,255     1,235          1,215        1,195        1,165    1,125   1,085   1,045
              42,250            42,500   1,265     1,245          1,225        1,205        1,175    1,135   1,095   1,055
              42,500            42,750   1,275     1,255          1,235        1,215        1,185    1,145   1,105   1,065
              42,750            43,000   1,285     1,265          1,245        1,225        1,195    1,155   1,115   1,075
Louisiana Administrative Code               December 2011         80
                                                           Title 61, Part I

                                                   Head Of Household Filing Status
            If your Louisiana
            tax table income:                              And the total exemptions claimed is:
        At Least        Less Than            1         2              3            4             5                  6          7              8
                                                                           Your Louisiana tax is:
             43,000           43,250     1,295     1,275          1,255          1,235            1,205        1,165       1,125          1,085
             43,250           43,500     1,305     1,285          1,265          1,245            1,215        1,175       1,135          1,095
             43,500           43,750     1,315     1,295          1,275          1,255            1,225        1,185       1,145          1,105
             43,750           44,000     1,325     1,305          1,285          1,265            1,235        1,195       1,155          1,115
             44,000           44,250     1,335     1,315          1,295          1,275            1,245        1,205       1,165          1,125
             44,250           44,500     1,345     1,325          1,305          1,285            1,255        1,215       1,175          1,135
             44,500           44,750     1,355     1,335          1,315          1,295            1,265        1,225       1,185          1,145
             44,750           45,000     1,365     1,345          1,325          1,305            1,275        1,235       1,195          1,155
             45,000           45,250     1,375     1,355          1,335          1,315            1,285        1,245       1,205          1,165
             45,250           45,500     1,385     1,365          1,345          1,325            1,295        1,255       1,215          1,175
             45,500           45,750     1,395     1,375          1,355          1,335            1,305        1,265       1,225          1,185
             45,750           46,000     1,405     1,385          1,365          1,345            1,315        1,275       1,235          1,195
             46,000           46,250     1,415     1,395          1,375          1,355            1,325        1,285       1,245          1,205
             46,250           46,500     1,425     1,405          1,385          1,365            1,335        1,295       1,255          1,215
             46,500           46,750     1,435     1,415          1,395          1,375            1,345        1,305       1,265          1,225
             46,750           47,000     1,445     1,425          1,405          1,385            1,355        1,315       1,275          1,235
             47,000           47,250     1,455     1,435          1,415          1,395            1,365        1,325       1,285          1,245
             47,250           47,500     1,465     1,445          1,425          1,405            1,375        1,335       1,295          1,255
             47,500           47,750     1,475     1,455          1,435          1,415            1,385        1,345       1,305          1,265
             47,750           48,000     1,485     1,465          1,445          1,425            1,395        1,355       1,315          1,275
             48,000           48,250     1,495     1,475          1,455          1,435            1,405        1,365       1,325          1,285
             48,250           48,500     1,505     1,485          1,465          1,445            1,415        1,375       1,335          1,295
             48,500           48,750     1,515     1,495          1,475          1,455            1,425        1,385       1,345          1,305
             48,750           49,000     1,525     1,505          1,485          1,465            1,435        1,395       1,355          1,315
             49,000           49,250     1,535     1,515          1,495          1,475            1,445        1,405       1,365          1,325
             49,250           49,500     1,545     1,525          1,505          1,485            1,455        1,415       1,375          1,335
             49,500           49,750     1,555     1,535          1,515          1,495            1,465        1,425       1,385          1,345
             49,750           50,000     1,565     1,545          1,525          1,505            1,475        1,435       1,395          1,355
             50,000           50,250     1,578     1,558          1,538          1,518            1,488        1,448       1,408          1,368
             50,250           50,500     1,593     1,573          1,553          1,533            1,503        1,463       1,423          1,383
             50,500           50,750     1,608     1,588          1,568          1,548            1,518        1,478       1,438          1,398
             50,750           51,000     1,623     1,603          1,583          1,563            1,533        1,493       1,453          1,413




                                       Plus 6% of Tax Table Income in Excess of $51,000



  B. Nonresidents and Part-Year Residents. Compute tax                        1. Married Individuals Filing Joint Returns and
table income as defined in R.S. 47:293(10). Reduce the tax                Qualified Surviving Spouses
table income by the total amount of personal exemptions and               If taxable income is:       The tax is:
deductions allowed for in R.S. 47:294, and increase the tax
table income by the proportionate share of those personal                 Not over $25,000            2% of taxable income excluding the
                                                                                                      proportionate share of personal exemptions and
exemptions and deductions as provided by R.S. 47:293(10).                                             deductions allowed for in R.S. 47:294.
The resulting amount is considered taxable income. The tax
                                                                          Over $25,000
due for nonresidents and part-year residents shall be
determined using one of the following tables depending on                 but not over $100,000       $500 plus 4% of the excess over $25,000. This
your filing status:                                                                                   amount is to be reduced by 2% of the first

                                                                  81           Louisiana Administrative Code                       December 2011
                                                          REVENUE AND TAXATION

                        $25,000 of the proportionate share of personal         received by an individual who is 65 years of age or older.
                        exemptions and deductions and 4% of the
                                                                               Only the individual who actually received the annual
                        proportionate share of personal exemptions and
                        deductions over $25,000.                               retirement income is entitled to the exemption.
Over $100,000           $3,500 plus 6% of the excess over $100,000.                Annual Retirement Income―pension and annuity
                        This amount is to be reduced by 2% of the first        income which is included in tax table income.
                        $25,000 of the proportionate share of personal
                        exemptions and deductions and 4% of the                    Tax Table Income―as defined in R. S. 47:293.
                        proportionate share of personal exemptions and
                        deductions over $25,000 but not over $100,000             B. For purposes of determining the total annual
                        and 6% of the proportionate share of personal          retirement income exemption that can be claimed on a
                        exemptions and deductions over $100,000.
                                                                               Louisiana individual income tax return, an individual
    2. Single Individuals and Married Individuals Filing                       receives annual retirement income as follows.
Separate Returns
                                                                                    1. Receipt of Benefits Paid from a Pension Plan.
If taxable income is:   The tax is:                                            Except as otherwise provided herein, only the plan
Not over $12,500        2% of taxable income excluding the                     participant receives annual retirement income from the
                        proportionate share of personal exemptions and         pension plan, the non-participant spouse does not receive
                        deductions allowed for in R.S. 47:294.                 annual retirement income from the plan.
Over $12,500
                                                                                   2. Receipt of Annuity Income. Only the named payee
but not over $50,000    $250 plus 4% of the excess over $12,500. This          or named annuitant receives annual retirement income from
                        amount is to be reduced by 2% of the first             an annuity.
                        $12,500 of the proportionate share of personal
                        exemptions and deductions and 4% of the                     3. Receipt of Income from an Individual Retirement
                        proportionate share of personal exemptions and
                                                                               Account. Only the named payee or distribute receives annual
                        deductions over $12,500.
                                                                               retirement income from an individual retirement account.
Over $50,000            $1,750 plus 6% of the excess over $50,000. This
                        amount is to be reduced by 2% of the first                 4.   Exceptions
                        $12,500 of the proportionate share of personal
                        exemptions and deductions and 4% of the                       a. If there is a qualified domestic relations order, as
                        proportionate share of personal exemptions and         defined in Internal Revenue Code Section 414(p), payments
                        deductions over $12,500 but not over $50,000           received by the alternate payee will be considered annual
                        and 6% of the proportionate share of personal
                        exemptions and deductions over $50,000.                retirement benefits received by an individual.

     3.    Head of Households                                                         b. Survivor benefits paid from a pension plan to the
                                                                               plan participant's surviving spouse will be considered annual
If taxable income is:   The tax is:                                            retirement benefits received by an individual.
Not over $12,500        2% of taxable income excluding the
                        proportionate share of personal exemptions and           C. Examples
                        deductions allowed for in R.S. 47:294.
                                                                                    1. Mary and John are a married couple. Mary worked
Over $12,500                                                                   for X Corporation for 35 years from 1964 until she retired in
but not over $50,000    $250 plus 4% of the excess over $12,500. This          1999. While working for X Corporation, Mary participated
                        amount is to be reduced by 2% of the first             in the corporation's pension plan. In 2005, Mary received a
                        $12,500 of the proportionate share of personal         total of $30,000 in distributions from the X Corporation
                        exemptions and deductions and 4% of the
                        proportionate share of personal exemptions and
                                                                               pension plan. John's only source of retirement income is
                        deductions over $12,500.                               federal Social Security, which is not included in the couple's
                                                                               tax table income because it is already exempt under R.S.
Over $50,000            $1,750 plus 6% of the excess over $50,000. This
                        amount is to be reduced by 2% of the first             47:44.2. Mary and John's filing status for federal and state
                        $12,500 of the proportionate share of personal         income tax is married filing joint and they are both over 65.
                        exemptions and deductions and 4% of the                Because only Mary receives annual retirement income, Mary
                        proportionate share of personal exemptions and         and John may only exempt $6,000 of Mary's retirement
                        deductions over $12,500 but not over $50,000
                        and 6% of the proportionate share of personal          income from their 2005 income taxes under this exemption.
                        exemptions and deductions over $50,000.                Because John is not the plan participant, he has not received
                                                                               any annual retirement income for purposes of the exemption.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:295 and R.S. 47:1511.                                                            2. Scott and Ellen are a married couple. Their filing
  HISTORICAL NOTE: Promulgated         by    the   Louisiana                   status for federal and state income tax is married filing joint
Department of Revenue, Policy Services Division, LR 29:1502                    and they are both over 65. Because they are both 65 years of
(August 2003), amended LR 35:2821 (December 2009).
                                                                               age or older, each of them is entitled to exempt up to $6,000
§1311. Annual Retirement Income Exemption for                                  of the annual retirement income each of them receive. Scott
       Individuals 65 or Older                                                 worked for ABC Corporation for 35 years from 1964 until
  A. Louisiana Revised Statutes 47:44.1 provides an                            he retired in 1999 at the age of 65. While working for ABC
exemption of up to $6,000 for annual retirement income                         Corporation, Scott participated in the corporation's pension
                                                                               plan. In 2005, Scott received a total of $30,000 in

Louisiana Administrative Code                      December 2011          82
                                                             Title 61, Part I

distributions from the ABC Corporation pension plan. Ellen                        c.   correspondence is pending.
has two sources of retirement income; federal Social                        C. Responsibilities
Security that is already exempt under R.S. 47:44.2 and an
annuity paid to her as the named annuitant in the amount of                   1. The Department of Revenue is responsible for the
$4,000 annually. Scott may exempt $6,000 of his ABC                      following:
Corporation pension income and Ellen may exempt all of her                        a.   properly identifying the affected taxpayer;
$4,000 annuity income for a combined exemption of                               b. accurately notifying the Department of Wildlife
$10,000.                                                                 and Fisheries of the taxpayer's identity; and
     3. Alan and Leslie are a married couple who do not                         c. timely notifying the Department of Wildlife and
live apart. Their filing status for federal and state income tax         Fisheries if the taxpayer pays the assessment or judgment
is married filing separate and they are both over 65. Because            and regains eligibility for a hunting or fishing license.
they are both 65 years of age or older, each of them is
                                                                             2. The Department of Wildlife and Fisheries is
entitled to exempt up to $6,000 of the annual retirement
income each of them receive on their married filing separate             responsible for the following:
returns. Alan is the named annuitant of an annuity from                         a. suspending, revoking or denying hunting and
which he receives annual retirement income of $10,000.                   fishing licenses once notified of a taxpayer's identity by the
Leslie is not yet retired and receives a salary, but no annual           Department of Revenue; and
retirement income. Alan's annuity income and Leslie's salary                     b. issuing or re-issuing hunting and fishing licenses
are community property. Because Louisiana is a community                 to taxpayers who have paid their tax debts once notified of
property state and the couple has chosen not to file a joint             this fact by the Department of Revenue.
return, Leslie must report one half of Alan's annuity income,
or $5,000, on her married filing separate federal and state                 D. Taxpayer Notification
income tax returns. Because Leslie is not the named                           1. Before the notice of hunting and fishing licenses
annuitant, she has not received annual retirement income for             suspension, revocation, or denial is sent to the Department of
purposes of the exemption and cannot claim any exemption                 Wildlife and Fisheries, the taxpayer will be mailed written
amount on her return. Because Alan is only reporting $5,000              notice.
of his annuity income on his federal and state income tax                    2. The notice will inform the taxpayer that his hunting
returns, he is only entitled to an exemption of $5,000.                  and fishing licenses will be suspended, revoked, or issuance
     4. Assume the same facts as in Example 3 except that                denied until full payment of the final and nonappealable
Alan and Leslie have a separation of property agreement.                 assessment or judgment is made or until the taxpayer enters
Each spouse will therefore report his or her own items of                into an installment agreement with the Department of
income and loss on his or her own married filing separate                Revenue.
return. Alan will report the entire amount of his annuity                     3. The notice will be mailed to the address on record
income and will be entitled to exempt $6,000 of the $10,000              and it will be presumed that the taxpayer has received the
of annual retirement income he receives.                                 notice if it is not returned as "Undeliverable."
  AUTHORITY NOTE: Promulgated in accordance with R.S.                         4. If a taxpayer defaults on a department authorized
47:44.1, R.S. 47:295, and R.S. 47:1511.                                  installment payment plan, no further notice of suspension,
  HISTORICAL NOTE: Promulgated by the Department of                      revocation, or denial of the issuance of the taxpayer's
Revenue, LR 32:259 (February 2006).                                      hunting and fishing licenses will be required.
§1351. Suspension, Revocation, and Denial of Hunting                       E. Notification to the Department of Wildlife and
       and Fishing Licenses                                              Fisheries
  A. An individual's hunting and fishing licenses will be                    1. The Department of Revenue will notify the
suspended, revoked, or denied if the Department of Revenue               Department of Wildlife and Fisheries of the name, Social
has a final and nonappealable individual income tax                      Security number, and address of the taxpayer for whom the
assessment or judgment against the individual in excess of               hunting and fishing licenses are required to be suspended,
$500 exclusive of penalty, interest, costs, and other charges.           revoked, or issuance denied.
     B. Exceptions                                                            2. The suspension and revocation will remain in effect
    1. If the taxpayer has filed for bankruptcy, then the                until the Department of Wildlife and Fisheries is notified
provisions of this regulation will not apply.                            otherwise by the Department of Revenue.

     2. An assessment or judgment will not be considered                     3. The Department of Revenue will notify the
final and nonappealable for purposes of this regulation if, for          Department of Wildlife and Fisheries of the name, Social
the applicable tax period:                                               Security number, and address of the taxpayer for whom the
                                                                         hunting and fishing licenses are to be issued or re-issued.
        a.   the taxpayer is in litigation with the department;
                                                                              4. Notifications may be by secured electronic
        b.   the taxpayer is being audited by the department;            transmission or by magnetic tapes, cartridges, or other
or                                                                       electronic media.


                                                                   83           Louisiana Administrative Code             December 2011
                                                      REVENUE AND TAXATION

     5. Notifications will be made weekly unless                               a. suspending or denying the renewal of a driver's
circumstances warrant a more frequent time schedule, such               license once notified of a taxpayer's identity by the
as the circumstances described in Subsection E.                         Department of Revenue; and
  F. If the taxpayer pays the assessment or judgment in                       b. issuing or renewing drivers' licenses to taxpayers
person, notice will be given to the Department of Wildlife              who have paid their tax debts once notified of this fact by
and Fisheries to remove the suspension, revocation, or denial           the Department of Revenue.
of the taxpayer's hunting and fishing licenses from their
                                                                          D. Taxpayer Notification
records. Notice to the Department of Wildlife and Fisheries
will be effected as follows:                                                1. The Department of Revenue must notify the
                                                                        taxpayer before the notice of driver's license suspension or
     1. Department of Revenue personnel may fax a
                                                                        denial is sent to the Department of Public Safety and
clearance to the Department of Wildlife and Fisheries
                                                                        Corrections, Office of Motor Vehicles.
indicating that the assessment or judgment has been paid; or
                                                                               a. The notice will inform the taxpayer that their
    2. a letter from the secretary or the secretary's
                                                                        driver's license will be suspended or renewal denied until
designee indicating that the assessment or judgment has
                                                                        full payment of the final and nonappealable assessment or
been paid may be issued to the taxpayer for presentation to
                                                                        judgment is made or until the taxpayer enters into an
the Department of Wildlife and Fisheries.
                                                                        installment agreement with the Department of Revenue.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:296.3 and 1511.                                                             b.   The notice will be mailed to the address on
  HISTORICAL NOTE: Promulgated by the Department of                     record.
Revenue, Policy Services Division, LR 30:1045 (May 2004).
                                                                             2. If, after notification, a taxpayer enters into an
§1355. Suspension and Denial of Renewal of Drivers'                     installment agreement with the Department of Revenue and
       Licenses                                                         later defaults on the agreement, no further notice to the
  A. An individual's driver's license will be suspended and             taxpayer by the Department of Revenue will be required and
the renewal denied if the Department of Revenue has a final             the notice of driver's license suspension or denial will be
and nonappealable individual income tax assessment or                   sent to the Department of Public Safety and Corrections,
judgment against the individual in excess of $1,000                     Office of Motor Vehicles.
exclusive of penalty, interest, costs, and other charges.                 E. Notification to the Department of Public Safety and
     B. Exceptions                                                      Corrections, Office of Motor Vehicles

    1. If the taxpayer has filed for bankruptcy, then the                   1. The Department of Revenue will notify the
provisions of this regulation will not apply.                           Department of Public Safety and Corrections, Office of
                                                                        Motor Vehicles, of the name, driver's license number, and
     2. An assessment or judgment will not be considered                date of birth of the taxpayer for whom the driver's license is
final and nonappealable for purposes of this regulation if, for         required to be suspended or renewal denied.
the applicable tax period:
                                                                             2. The suspension and denial will remain in effect
         a.   the taxpayer is in litigation with the department;        until the Department of Public Safety and Corrections,
                                                                        Office of Motor Vehicles, is notified otherwise by the
         b.   the taxpayer is being audited by the department;
                                                                        Department of Revenue.
or
                                                                             3. The Department of Revenue will notify the
         c.   correspondence is pending.
                                                                        Department of Public Safety and Corrections, Office of
     C. Responsibilities                                                Motor Vehicles, of the name, driver's license number, and
                                                                        date of birth of the taxpayer for whom the driver's license is
     1. The Department of Revenue is responsible for the
                                                                        to be issued or renewed.
following:
                                                                             4. Notifications may be by secured electronic
         a.   properly identifying the affected taxpayer;
                                                                        transmission or by magnetic tapes, cartridges, or other
      b. accurately notifying the Department of Public                  electronic media.
Safety and Corrections, Office of Motor Vehicles, of the
                                                                             5. Notifications will be made weekly unless
taxpayer's identity; and
                                                                        circumstances warrant a more frequent time schedule, such
       c. timely notifying the Department of Public Safety              as the circumstances described in Subsection F.
and Corrections, Office of Motor Vehicles, if the taxpayer
                                                                          F. If the taxpayer pays the assessment or judgment in
pays the assessment or judgment and regains eligibility for a
                                                                        person, notice will be given to the Department of Public
driver's license.
                                                                        Safety and Corrections, Office of Motor Vehicles, to remove
    2. The Department of Public Safety and Corrections,                 the suspension or denial of the renewal of the taxpayer's
Office of Motor Vehicles, is responsible for the following:             driver's license from their records. Notice to the Department
                                                                        of Public Safety and Corrections, Office of Motor Vehicles,

Louisiana Administrative Code                   December 2011      84
                                                               Title 61, Part I

will be effected by the presentation of a letter from the                       2. Unless otherwise provided herein, corporate
secretary or the secretary's designee to the Office of Motor               partners and partners, who are themselves partnerships,
Vehicles indicating that the assessment or judgment has been               cannot be included in composite returns filed by a
paid.                                                                      partnership. These partners must file all applicable Louisiana
                                                                           tax returns, and must report all Louisiana source income,
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:296.2 and 47:1511.                                                      including income from the partnership in those returns.
  HISTORICAL NOTE: Promulgated by the Department of                            3. Resident partners, other than corporations,
Revenue, Policy Services Division, LR 30:2330 (October 2004).              partnerships and tax-exempt trusts, may be included in a
     Chapter 14. Income: Partnerships                                      composite return.

§1401. Partnership Composite Return Requirement,                              C. Composite Return Requirements
       Composite Payment Requirement, Exceptions                                1. All nonresident partners, other than partners that
   A. Definitions. For the purpose of this rule, the following             are corporations, partnerships or tax-exempt trusts, who
terms are defined.                                                         were partners at any time during the taxable year and who do
                                                                           not have a valid agreement on file with the Department of
    Corporation―an entity that is treated as a corporation                 Revenue must be included in the composite partnership
for state income tax purposes as set forth in R.S.                         return.
47:287.11(A).
                                                                                2. The due date of the composite return is the due date
     Engaging in Activities in This State―having payroll,                  set forth for all income tax returns other than corporate
sales, or tangible property in this state, or intangible property          returns.
with a Louisiana business situs.
                                                                                3. A schedule must be attached to the composite
     Individual Return―a Louisiana personal income tax                     return that includes the following information for every
return or a Louisiana fiduciary income tax return.                         nonresident partner in the partnership:
    Nonresident―any person not domiciled, residing in, or                           a.   the name of the partner;
having a permanent place of abode in Louisiana.
                                                                                    b.   the address of the partner;
     Partner―a member or partner of an association that is
treated as a partnership for state income tax purposes,                             c.   the taxpayer identification number of the partner;
including but not limited to, a member in a limited liability                       d.   the partner's distributive share; and
company or a partner in a general partnership, a partnership
in commendam, or a registered limited liability partnership.                      e. whether or not that partner has an agreement on
A partner is the ultimate owner of a partnership interest;                 file with the Department of Revenue to file an individual
therefore someone holding or managing a partnership                        return on his or her own behalf.
interest on behalf of another, such as a broker, is not a                       4. If a resident partner is included in the partnership's
partner for purposes of this rule.                                         composite return, a schedule must be attached to the
     Partnership―any association that is treated as a                      composite return that includes the following information for
partnership for state income tax purposes including, but not               every resident partner included in the partnership composite
limited to, a general partnership, partnership in commendam,               return:
a registered limited liability partnership, or a limited liability                  a.   the name of the partner;
company. Because of R.S. 47:287.11(A), the above listed
business associations that do not elect to be taxed as                              b.   the address of the partner;
corporations for federal income tax purposes are treated as                         c.   the taxpayer identification number of the partner;
partnerships for Louisiana income tax purposes.
                                                                                    d.   the partner's distributive share.
  B. Persons to be Included in a Composite Return
                                                                                5. The filing of a true, correct, and complete
    1. Partnerships engaging in activities in this state that              partnership composite return will relieve any nonresident
have nonresident partners are required to file a composite                 partner properly included in the composite return from the
partnership return unless:                                                 duty to file an individual return, provided that the
       a. all nonresident partners           are   corporations,           nonresident partner does not have any income from
partnerships or tax exempt trusts; or                                      Louisiana sources other than that income reported in the
                                                                           composite return. Inclusion in a partnership composite return
       b. all nonresident partners, other than corporations,               shall not relieve a resident partner of the obligation to file a
partnerships and tax exempt trusts, have a valid agreement                 Louisiana income tax return.
on file with the Department of Revenue in which the partner
                                                                                6. Filing requirement the first year the partnership is
has agreed to file an individual return and pay income tax on
                                                                           subject to the composite return rules and issuance of special
all income derived from or attributable to sources in this
                                                                           identification number. Every partnership that engages in
state.


                                                                     85           Louisiana Administrative Code              December 2011
                                                   REVENUE AND TAXATION

activities in this state and that has nonresident partners will        pay income tax on all income derived from or attributable to
make an initial filing with the department.                            sources in this state.
         a. Each partnership that is required to file a                     2. The partner will execute the agreement and transmit
composite return will file its first composite return and make         the agreement to the partnership, on or before the last day of
its first composite payment by the composite return due date.          the month following the close of the partnership's taxable
The partnership will be issued an identification number by             year.
the department upon its initial filing. This identification
number shall be used on all partnership correspondence with                3. The partnership will file the original agreement
the department, including subsequent composite returns filed           with the composite return filed for that taxable year. The
by that partnership.                                                   partnership must keep a copy of the agreement on file.
         b. Each partnership that is not required to file a                 4. The agreement must be in writing, in the form of an
composite return because all its partners have filed                   affidavit and must include all of the following:
agreements to file on their own behalf, must make an initial
                                                                              a. a statement that the taxpayer is a nonresident
filing in which it files all agreements with the Department of
                                                                       partner or member;
Revenue by the composite return due date. The partnership
will be issued an identification number by the department                     b.   the partner's name;
upon its initial filing. This identification number shall be
used on all partnership correspondence with the department,                   c.   the partner's address;
including the filing of additional agreements.                                d. the partner's Social Security number or taxpayer
   D. Composite Payment Requirement                                    identification number;
      1. All partnerships engaging in activities in this state                e.   the name of the partnership;
that have nonresident partners that are not corporations,
partnerships or tax-exempt trusts shall make composite                        f.   the address of the partnership;
payments on behalf of all of their nonresident partners, other              g.     the partnership's federal taxpayer identification
than corporate partners and partners, who are themselves               number;
partnerships, who do not file an agreement to file an
individual return and pay Louisiana income tax.                              h. a statement that the taxpayer agrees to timely file
                                                                       a Louisiana individual income tax return and make payment
      2. The composite payment is due on the earlier of the
                                                                       of Louisiana individual income tax;
date of filing of the composite return or the due date of the
composite return, without regard to extensions of time to                    i. a statement that the taxpayer understands that the
file. An extension of time to file the composite return does           Louisiana Department of Revenue is not bound by the
not extend the time to pay the composite payment.                      agreement if the taxpayer fails to abide by the terms of the
      3. Each partner's share of the composite payment is              agreement;
the maximum tax rate for individuals multiplied by the                        j. the statement that "under penalties of perjury, I
partner's share of partnership income that was derived from            declare that I have examined this affidavit and agreement
or attributable to sources in this state. This computation             and to the best of my knowledge, and belief, it is true correct
applies whether or not the partnership income is distributed.          and complete;" and
      4. The composite payment to be made by the
partnership is the sum of each partner's share of the                         k.   the signature of the partner.
composite payment for all partners included in the                          5. Once an agreement is signed by the partner,
composite return.                                                      transmitted to the partnership, and the partnership has filed
      5. For a nonresident partner whose only Louisiana                the agreement with the Department of Revenue, the
income is from the partnership, amounts paid by the                    agreement will continue in effect until the partner or the
partnership on that partner's behalf will be treated as a              Department of Revenue revokes the agreement, or the
payment of that partner's Louisiana individual income tax              partner is no longer a partner in the partnership.
liability.
                                                                           6. The agreement may be revoked by either the
      6. If a partner has any Louisiana source income in
                                                                       partner or the Department of Revenue as follows.
addition to the income from the partnership, amounts paid
by the partnership on that partner's behalf will be treated as                 a. The partner may revoke the agreement at will.
an advance payment of the tax liability shown on that                  However, this revocation does not become effective until the
partner's individually filed return.                                   first partnership tax year following the partnership tax year
                                                                       in which the revocation is transmitted to the partnership. The
  E. Nonresident Partner's Agreement to File an Individual
                                                                       partner must send written notice of the revocation to the
Return
                                                                       partnership. The partnership will forward the notice to the
     1. No composite return or composite payment is                    Department of Revenue. The partner may execute a new
required from a partnership on behalf of a partner who has a           agreement, in the manner set forth in this Subsection, at any
valid agreement on file with the Department of Revenue in              time.
which the partner has agreed to file an individual return and

Louisiana Administrative Code                 December 2011       86
                                                             Title 61, Part I

        b. The Department of Revenue may revoke the                           4. Inclusion in a partnership composite return filed by
agreement only if the partner fails to comply with the terms             a publicly traded partnership shall not relieve resident
of the agreement. This revocation is prospective only with               partners, corporate partners, or nonresident partners who
respect to the partnership, and does not become effective                have other Louisiana source income of the obligation to file
until the first partnership tax year following the partnership           all applicable Louisiana tax returns, and report all Louisiana
tax year in which the revocation is transmitted to the                   source income, including income from the partnership.
partnership. The Department of Revenue must send written
                                                                           H. Nothing in this regulation shall restrict the secretary's
notice of the revocation to the partner and the partnership.
                                                                         authority to otherwise provide for efficient administration of
The notice will be mailed to the partnership at the address
                                                                         the composite return and composite payment requirements
given in the last return or report filed by the partnership. The
                                                                         of R.S. 47:201.1.
notice will be mailed to the partner at the address provided
in the agreement. If the Department of Revenue revokes an                  AUTHORITY NOTE: Promulgated in accordance with R.S.
agreement, the department may refuse to accept a                         47:201.1 and R.S. 47:1511.
subsequent agreement by that partner, unless the partner can               HISTORICAL NOTE: Promulgated by the Department of
show that the revocation was in error.                                   Revenue, Policy Services Division, LR 28:868 (April 2002),
                                                                         amended LR 33:861 (May 2007).
  F. A partnership making a composite return and payment
must furnish the following information to all partners                     Chapter 15. Income: Withholding Tax
included in the composite return:                                        §1501. Income Tax Withholding Tables
    1. the identification number that was issued to the                    A. Employers required to deduct and withhold taxes
partnership by the department under Subparagraph C.6.b                   pursuant to R.S. 47:112 shall deduct and withhold tax in an
above;                                                                   amount determined in accordance with the tables provided in
    2. the amount of the payment made on the partner's                   Subsection C, the formulas provided in Subsection D, or a
behalf;                                                                  formula that produces equivalent amounts.

    3. a statement that the amount paid on the partner's                    B. Wage Bracket Tables and Instructions
behalf can be used as an advance payment of that partner's                   1. Select the set of tables that corresponds to the
Louisiana individual income tax liability for the same tax               payroll period of the employee.
period;
                                                                             2. With the use of the information obtained from Form
   4. the mailing address of the Louisiana Department of                 R-1300(L-4),       Employee’s    Withholding      Exemption
Revenue; and                                                             Certificate, determine which column of the tables to use.
   5. the world wide web address of the Louisiana                               a. If your employee claims neither himself, his
Department of Revenue, www.rev.state.la.us.                              spouse, nor any dependency credits, use the first column in
  G. Additional       Provisions     for    Publicly    Traded           the table designated 0 exemptions, 0 dependents.
Partnerships                                                                   b. If your employee claims only himself, whether he
     1. A publicly traded partnership that is not treated as a           is married or not, use Column 1. Also, use the appropriate
corporation for federal income tax purposes may elect, with              subcolumn for the number of dependency credits he is
the prior approval of the secretary:                                     claiming.

       a. not to accept agreements filed by partners under                     c. If your employee claims himself and his spouse,
the provisions of Paragraph B.4 or Subsection E above; and               use Column 2. Also, use the appropriate subcolumn for the
                                                                         number of dependency credits he is claiming.
      b. to include all partners in its composite return and
composite payment required by this Section, including                       C. Withholding Tax Tables
corporations and tax-exempt trusts.                                             1.        For the purposes of the withholding tax tables
     2. This election must be applied for in writing and                             a.     Exemptions are for a husband, wife, or single
approved in writing by the secretary. Once approval is                   filer.
granted, the election will remain in effect until revoked by
the partnership.                                                                b. Dependency          credits     include     children,
                                                                         stepchildren, etc., as described in Section 152 of the Internal
     3. The composite payment to be made by the publicly                 Revenue Code.
traded partnership is the sum of each partner's share of the
composite payment for all partners. Each partner's share of                     2.        Adjustments to wage bracket tables
the composite payment is the maximum individual income                          a. Each table provides for the appropriate
tax rate multiplied by the partner's share of partnership                withholding amount for single or married personal
income that was derived from or attributable to sources in               exemptions with up to six dependency credits. There is no
this state. This computation applies whether or not the                  provision for withholding based on head-of-household status
partnership income is distributed.


                                                                   87             Louisiana Administrative Code                December 2011
                                                         REVENUE AND TAXATION

   and these taxpayers may claim only a single withholding                                                                   Amount of
   personal exemption.                                                                               Payroll Period          Reduction
                                                                                                    Semimonthly                 .88
          b. When an employee has more than six                                                     Monthly                     1.75
   dependents, the amount may be determined by reducing the
   tax shown in the column for six dependents by the amount                          c. When the employee claims only credit for
   shown below for the applicable payroll period multiplied by                 dependents and no withholding personal exemption, the
   the number of dependents over six.                                          amount to be deducted and withheld should be determined
                                                                               by reducing the amounts elected under the column for
                                            Amount of
                      Payroll Period        Reduction                          employees claiming no exemption or credits by the amount
                     Daily                    $.08                             in Subparagraph b above multiplied by the number of
                     Weekly                    .40                             dependents claimed.
                     Biweekly                  .80



       3.   Withholding Tables—Effective after July 1, 2009
                                                    Daily Louisiana Income Tax Withholding Table
Exemptions:           0                                   1                                                              2
Dependents:
   SalaryRange:
  Min       Max       0         0       1        2       3        4        5       6        0          1         2       3         4       5       6
     0.00    10.00    2.1%       0.00    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    10.01    12.00     0.23      0.00    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    12.01    14.00     0.27      0.00    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    14.01    16.00     0.32      0.00    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    16.01    18.00     0.36      0.00    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    18.01    20.00     0.40      0.04    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    20.01    22.00     0.44      0.08    0.00     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    22.01    24.00     0.48      0.12    0.04     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    24.01    26.00     0.53      0.16    0.08     0.00    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    26.01    28.00     0.57      0.20    0.12     0.04    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    28.01    30.00     0.61      0.25    0.17     0.08    0.00     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    30.01    32.00     0.65      0.29    0.21     0.13    0.05     0.00     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    32.01    34.00     0.69      0.33    0.25     0.17    0.09     0.01     0.00    0.00     0.00       0.00      0.00    0.00      0.00    0.00    0.00
    34.01    36.00     0.74      0.37    0.29     0.21    0.13     0.05     0.00    0.00     0.01       0.00      0.00    0.00      0.00    0.00    0.00
    36.01    38.00     0.78      0.41    0.33     0.25    0.17     0.09     0.01    0.00     0.05       0.00      0.00    0.00      0.00    0.00    0.00
    38.01    40.00     0.82      0.46    0.38     0.29    0.21     0.13     0.05    0.00     0.09       0.01      0.00    0.00      0.00    0.00    0.00
    40.01    42.00     0.86      0.50    0.42     0.34    0.26     0.17     0.09    0.01     0.13       0.05      0.00    0.00      0.00    0.00    0.00
    42.01    44.00     0.90      0.54    0.46     0.38    0.30     0.22     0.14    0.06     0.18       0.10      0.02    0.00      0.00    0.00    0.00
    44.01    46.00     0.95      0.58    0.50     0.42    0.34     0.26     0.18    0.10     0.22       0.14      0.06    0.00      0.00    0.00    0.00
    46.01    48.00     0.99      0.62    0.54     0.46    0.38     0.30     0.22    0.14     0.26       0.18      0.10    0.02      0.00    0.00    0.00
    48.01    50.00     1.04      0.68    0.60     0.52    0.44     0.36     0.28    0.20     0.30       0.22      0.14    0.06      0.00    0.00    0.00
    50.01    52.00     1.12      0.75    0.67     0.59    0.51     0.43     0.35    0.27     0.34       0.26      0.18    0.10      0.02    0.00    0.00
    52.01    54.00     1.19      0.83    0.75     0.67    0.59     0.50     0.42    0.34     0.39       0.31      0.23    0.14      0.06    0.00    0.00
    54.01    56.00     1.27      0.90    0.82     0.74    0.66     0.58     0.50    0.42     0.43       0.35      0.27    0.19      0.11    0.02    0.00
    56.01    58.00     1.34      0.98    0.90     0.81    0.73     0.65     0.57    0.49     0.47       0.39      0.31    0.23      0.15    0.07    0.00
    58.01    60.00     1.41      1.05    0.97     0.89    0.81     0.73     0.65    0.57     0.51       0.43      0.35    0.27      0.19    0.11    0.03
    60.01    62.00     1.49      1.12    1.04     0.96    0.88     0.80     0.72    0.64     0.55       0.47      0.39    0.31      0.23    0.15    0.07
    62.01    64.00     1.56      1.20    1.12     1.04    0.96     0.87     0.79    0.71     0.60       0.52      0.44    0.35      0.27    0.19    0.11
    64.01    66.00     1.64      1.27    1.19     1.11    1.03     0.95     0.87    0.79     0.64       0.56      0.48    0.40      0.32    0.23    0.15
    66.01    68.00     1.71      1.35    1.27     1.18    1.10     1.02     0.94    0.86     0.68       0.60      0.52    0.44      0.36    0.28    0.20
    68.01    70.00     1.78      1.42    1.34     1.26    1.18     1.10     1.02    0.94     0.72       0.64      0.56    0.48      0.40    0.32    0.24
    70.01    72.00     1.86      1.49    1.41     1.33    1.25     1.17     1.09    1.01     0.76       0.68      0.60    0.52      0.44    0.36    0.28
    72.01    74.00     1.93      1.57    1.49     1.41    1.33     1.24     1.16    1.08     0.81       0.73      0.65    0.56      0.48    0.40    0.32
    74.01    76.00     2.01      1.64    1.56     1.48    1.40     1.32     1.24    1.16     0.85       0.77      0.69    0.61      0.53    0.44    0.36
    76.01    78.00     2.08      1.72    1.64     1.55    1.47     1.39     1.31    1.23     0.89       0.81      0.73    0.65      0.57    0.49    0.41
    78.01    80.00     2.15      1.79    1.71     1.63    1.55     1.47     1.39    1.31     0.93       0.85      0.77    0.69      0.61    0.53    0.45
    80.01    82.00     2.23      1.86    1.78     1.70    1.62     1.54     1.46    1.38     0.97       0.89      0.81    0.73      0.65    0.57    0.49
    82.01    84.00     2.30      1.94    1.86     1.78    1.70     1.61     1.53    1.45     1.02       0.94      0.86    0.77      0.69    0.61    0.53
    84.01    86.00     2.38      2.01    1.93     1.85    1.77     1.69     1.61    1.53     1.06       0.98      0.90    0.82      0.74    0.65    0.57
    86.01    88.00     2.45      2.09    2.01     1.92    1.84     1.76     1.68    1.60     1.10       1.02      0.94    0.86      0.78    0.70    0.62
    88.01    90.00     2.52      2.16    2.08     2.00    1.92     1.84     1.76    1.68     1.14       1.06      0.98    0.90      0.82    0.74    0.66
    90.01    92.00     2.60      2.23    2.15     2.07    1.99     1.91     1.83    1.75     1.18       1.10      1.02    0.94      0.86    0.78    0.70
    92.01    94.00     2.67      2.31    2.23     2.15    2.07     1.98     1.90    1.82     1.23       1.15      1.07    0.98      0.90    0.82    0.74
    94.01    96.00     2.75      2.38    2.30     2.22    2.14     2.06     1.98    1.90     1.27       1.19      1.11    1.03      0.95    0.86    0.78
    96.01    98.00     2.82      2.46    2.38     2.29    2.21     2.13     2.05    1.97     1.32       1.24      1.16    1.08      1.00    0.92    0.84


   Louisiana Administrative Code                   December 2011          88
                                                              Title 61, Part I

                                                Daily Louisiana Income Tax Withholding Table
Exemptions:          0                                1                                                           2
Dependents:
   SalaryRange:
  Min       Max      0       0       1       2       3        4        5         6       0       1        2       3       4       5       6
    98.01   100.00    2.89    2.53    2.45    2.37    2.29     2.21     2.13      2.05    1.40    1.32     1.24    1.16    1.08    0.99    0.91
   100.01   102.00    2.97    2.60    2.52    2.44    2.36     2.28     2.20      2.12    1.47    1.39     1.31    1.23    1.15    1.07    0.99
   102.01   104.00    3.04    2.68    2.60    2.52    2.44     2.35     2.27      2.19    1.55    1.47     1.39    1.31    1.23    1.14    1.06
   104.01   106.00    3.12    2.75    2.67    2.59    2.51     2.43     2.35      2.27    1.62    1.54     1.46    1.38    1.30    1.22    1.14
   106.01   108.00    3.19    2.83    2.75    2.66    2.58     2.50     2.42      2.34    1.70    1.62     1.54    1.46    1.38    1.29    1.21
   108.01   110.00    3.26    2.90    2.82    2.74    2.66     2.58     2.50      2.42    1.77    1.69     1.61    1.53    1.45    1.37    1.29
   110.01   112.00    3.34    2.97    2.89    2.81    2.73     2.65     2.57      2.49    1.85    1.77     1.69    1.61    1.53    1.44    1.36
   112.01   114.00    3.41    3.05    2.97    2.89    2.81     2.72     2.64      2.56    1.92    1.84     1.76    1.68    1.60    1.52    1.44
   114.01   116.00    3.49    3.12    3.04    2.96    2.88     2.80     2.72      2.64    2.00    1.92     1.84    1.76    1.68    1.59    1.51
   116.01   118.00    3.56    3.20    3.12    3.03    2.95     2.87     2.79      2.71    2.07    1.99     1.91    1.83    1.75    1.67    1.59
   118.01   120.00    3.63    3.27    3.19    3.11    3.03     2.95     2.87      2.79    2.15    2.07     1.99    1.91    1.83    1.74    1.66
   120.01   122.00    3.71    3.34    3.26    3.18    3.10     3.02     2.94      2.86    2.22    2.14     2.06    1.98    1.90    1.82    1.74
   122.01   124.00    3.78    3.42    3.34    3.26    3.18     3.09     3.01      2.93    2.30    2.22     2.14    2.06    1.98    1.89    1.81
   124.01   126.00    3.86    3.49    3.41    3.33    3.25     3.17     3.09      3.01    2.37    2.29     2.21    2.13    2.05    1.97    1.89
   126.01   128.00    3.93    3.57    3.49    3.40    3.32     3.24     3.16      3.08    2.45    2.37     2.29    2.21    2.13    2.04    1.96
   128.01   130.00    4.00    3.64    3.56    3.48    3.40     3.32     3.24      3.16    2.52    2.44     2.36    2.28    2.20    2.12    2.04
   130.01   132.00    4.08    3.71    3.63    3.55    3.47     3.39     3.31      3.23    2.60    2.52     2.44    2.36    2.28    2.19    2.11
   132.01   134.00    4.15    3.79    3.71    3.63    3.55     3.46     3.38      3.30    2.67    2.59     2.51    2.43    2.35    2.27    2.19
   134.01   136.00    4.23    3.86    3.78    3.70    3.62     3.54     3.46      3.38    2.75    2.67     2.59    2.51    2.43    2.34    2.26
   136.01   138.00    4.30    3.94    3.86    3.77    3.69     3.61     3.53      3.45    2.82    2.74     2.66    2.58    2.50    2.42    2.34
   138.01   140.00    4.37    4.01    3.93    3.85    3.77     3.69     3.61      3.53    2.90    2.82     2.74    2.66    2.58    2.49    2.41
   140.01   142.00    4.45    4.08    4.00    3.92    3.84     3.76     3.68      3.60    2.97    2.89     2.81    2.73    2.65    2.57    2.49
   142.01   144.00    4.52    4.16    4.08    4.00    3.92     3.83     3.75      3.67    3.05    2.97     2.89    2.81    2.73    2.64    2.56
   144.01   146.00    4.60    4.23    4.15    4.07    3.99     3.91     3.83      3.75    3.12    3.04     2.96    2.88    2.80    2.72    2.64
   146.01   148.00    4.67    4.31    4.23    4.14    4.06     3.98     3.90      3.82    3.20    3.12     3.04    2.96    2.88    2.79    2.71
   148.01   150.00    4.74    4.38    4.30    4.22    4.14     4.06     3.98      3.90    3.27    3.19     3.11    3.03    2.95    2.87    2.79
   150.01   152.00    4.82    4.45    4.37    4.29    4.21     4.13     4.05      3.97    3.35    3.27     3.19    3.11    3.03    2.94    2.86
   152.01   154.00    4.89    4.53    4.45    4.37    4.29     4.20     4.12      4.04    3.42    3.34     3.26    3.18    3.10    3.02    2.94
   154.01   156.00    4.97    4.60    4.52    4.44    4.36     4.28     4.20      4.12    3.50    3.42     3.34    3.26    3.18    3.09    3.01
   156.01   158.00    5.04    4.68    4.60    4.51    4.43     4.35     4.27      4.19    3.57    3.49     3.41    3.33    3.25    3.17    3.09
   158.01   160.00    5.11    4.75    4.67    4.59    4.51     4.43     4.35      4.27    3.65    3.57     3.49    3.41    3.33    3.24    3.16
   160.01   162.00    5.19    4.82    4.74    4.66    4.58     4.50     4.42      4.34    3.72    3.64     3.56    3.48    3.40    3.32    3.24
   162.01   164.00    5.26    4.90    4.82    4.74    4.66     4.57     4.49      4.41    3.80    3.72     3.64    3.56    3.48    3.39    3.31
   164.01   166.00    5.34    4.97    4.89    4.81    4.73     4.65     4.57      4.49    3.87    3.79     3.71    3.63    3.55    3.47    3.39
   166.01   168.00    5.41    5.05    4.97    4.88    4.80     4.72     4.64      4.56    3.95    3.87     3.79    3.71    3.63    3.54    3.46
   168.01   170.00    5.48    5.12    5.04    4.96    4.88     4.80     4.72      4.64    4.02    3.94     3.86    3.78    3.70    3.62    3.54
   170.01   172.00    5.56    5.19    5.11    5.03    4.95     4.87     4.79      4.71    4.10    4.02     3.94    3.86    3.78    3.69    3.61
   172.01   174.00    5.63    5.27    5.19    5.11    5.03     4.94     4.86      4.78    4.17    4.09     4.01    3.93    3.85    3.77    3.69
   174.01   176.00    5.71    5.34    5.26    5.18    5.10     5.02     4.94      4.86    4.25    4.17     4.09    4.01    3.93    3.84    3.76
   176.01   178.00    5.78    5.42    5.34    5.25    5.17     5.09     5.01      4.93    4.32    4.24     4.16    4.08    4.00    3.92    3.84
   178.01   180.00    5.85    5.49    5.41    5.33    5.25     5.17     5.09      5.01    4.40    4.32     4.24    4.16    4.08    3.99    3.91
   180.01   182.00    5.93    5.56    5.48    5.40    5.32     5.24     5.16      5.08    4.47    4.39     4.31    4.23    4.15    4.07    3.99
   182.01   184.00    6.00    5.64    5.56    5.48    5.40     5.31     5.23      5.15    4.55    4.47     4.39    4.31    4.23    4.14    4.06
   184.01   186.00    6.08    5.71    5.63    5.55    5.47     5.39     5.31      5.23    4.62    4.54     4.46    4.38    4.30    4.22    4.14
   186.01   188.00    6.15    5.79    5.71    5.62    5.54     5.46     5.38      5.30    4.70    4.62     4.54    4.46    4.38    4.29    4.21
   188.01   190.00    6.22    5.86    5.78    5.70    5.62     5.54     5.46      5.38    4.77    4.69     4.61    4.53    4.45    4.37    4.29
   190.01   192.00    6.30    5.93    5.85    5.77    5.69     5.61     5.53      5.45    4.85    4.77     4.69    4.61    4.53    4.44    4.36
   192.01   194.00    6.38    6.02    5.94    5.86    5.78     5.69     5.61      5.53    4.92    4.84     4.76    4.68    4.60    4.52    4.44
   194.01   196.00    6.48    6.12    6.04    5.96    5.88     5.80     5.72      5.63    5.00    4.92     4.84    4.76    4.68    4.59    4.51
   196.01   198.00    6.58    6.22    6.14    6.06    5.98     5.90     5.82      5.74    5.07    4.99     4.91    4.83    4.75    4.67    4.59
   198.01   200.00    6.68    6.32    6.24    6.16    6.08     6.00     5.92      5.84    5.15    5.07     4.99    4.91    4.83    4.74    4.66
   200.01   202.00    6.79    6.42    6.34    6.26    6.18     6.10     6.02      5.94    5.22    5.14     5.06    4.98    4.90    4.82    4.74
   202.01   204.00    6.89    6.52    6.44    6.36    6.28     6.20     6.12      6.04    5.30    5.22     5.14    5.06    4.98    4.89    4.81
   204.01   206.00    6.99    6.62    6.54    6.46    6.38     6.30     6.22      6.14    5.37    5.29     5.21    5.13    5.05    4.97    4.89
   206.01   208.00    7.09    6.73    6.64    6.56    6.48     6.40     6.32      6.24    5.45    5.37     5.29    5.21    5.13    5.04    4.96
   208.01   210.00    7.19    6.83    6.75    6.66    6.58     6.50     6.42      6.34    5.52    5.44     5.36    5.28    5.20    5.12    5.04
   210.01   212.00    7.29    6.93    6.85    6.77    6.68     6.60     6.52      6.44    5.60    5.52     5.44    5.36    5.28    5.19    5.11
   212.01   214.00    7.39    7.03    6.95    6.87    6.79     6.70     6.62      6.54    5.67    5.59     5.51    5.43    5.35    5.27    5.19
   214.01   216.00    7.49    7.13    7.05    6.97    6.89     6.81     6.73      6.64    5.75    5.67     5.59    5.51    5.43    5.34    5.26
   216.01   218.00    7.59    7.23    7.15    7.07    6.99     6.91     6.83      6.75    5.82    5.74     5.66    5.58    5.50    5.42    5.34
   218.01   220.00    7.69    7.33    7.25    7.17    7.09     7.01     6.93      6.85    5.90    5.82     5.74    5.66    5.58    5.49    5.41
   220.01   222.00    7.80    7.43    7.35    7.27    7.19     7.11     7.03      6.95    5.97    5.89     5.81    5.73    5.65    5.57    5.49
   222.01   224.00    7.90    7.53    7.45    7.37    7.29     7.21     7.13      7.05    6.05    5.97     5.89    5.81    5.73    5.64    5.56
   224.01   226.00    8.00    7.63    7.55    7.47    7.39     7.31     7.23      7.15    6.12    6.04     5.96    5.88    5.80    5.72    5.64


                                                                      89         Louisiana Administrative Code              December 2011
                                                       REVENUE AND TAXATION

                                                  Daily Louisiana Income Tax Withholding Table
Exemptions:           0                                 1                                                        2
Dependents:
   SalaryRange:
  Min       Max       0        0       1       2       3       4        5        6       0       1       2       3       4       5       6
   226.01   228.00     8.10     7.74    7.65    7.57    7.49    7.41     7.33     7.25    6.20    6.12    6.04    5.96    5.88    5.79    5.71
   228.01   230.00     8.20     7.84    7.76    7.67    7.59    7.51     7.43     7.35    6.27    6.19    6.11    6.03    5.95    5.87    5.79
   230.01   232.00     8.30     7.94    7.86    7.78    7.69    7.61     7.53     7.45    6.35    6.27    6.19    6.11    6.03    5.94    5.86
   232.01   234.00     8.40     8.04    7.96    7.88    7.80    7.71     7.63     7.55    6.42    6.34    6.26    6.18    6.10    6.02    5.94
   234.01   236.00     8.50     8.14    8.06    7.98    7.90    7.82     7.74     7.65    6.50    6.42    6.34    6.26    6.18    6.09    6.01
   236.01   238.00     8.60     8.24    8.16    8.08    8.00    7.92     7.84     7.76    6.57    6.49    6.41    6.33    6.25    6.17    6.09
   238.01   240.00     8.70     8.34    8.26    8.18    8.10    8.02     7.94     7.86    6.65    6.57    6.49    6.41    6.33    6.24    6.16
   240.01   242.00     8.81     8.44    8.36    8.28    8.20    8.12     8.04     7.96    6.72    6.64    6.56    6.48    6.40    6.32    6.24
   242.01   244.00     8.91     8.54    8.46    8.38    8.30    8.22     8.14     8.06    6.80    6.72    6.64    6.56    6.48    6.39    6.31
   244.01   246.00     9.01     8.64    8.56    8.48    8.40    8.32     8.24     8.16    6.87    6.79    6.71    6.63    6.55    6.47    6.39
   246.01   248.00     9.11     8.75    8.66    8.58    8.50    8.42     8.34     8.26    6.95    6.87    6.79    6.71    6.63    6.54    6.46
   248.01   250.00     9.21     8.85    8.77    8.68    8.60    8.52     8.44     8.36    7.02    6.94    6.86    6.78    6.70    6.62    6.54
   250.01   252.00     9.31     8.95    8.87    8.79    8.70    8.62     8.54     8.46    7.10    7.02    6.94    6.86    6.78    6.69    6.61
   252.01   254.00     9.41     9.05    8.97    8.89    8.81    8.72     8.64     8.56    7.17    7.09    7.01    6.93    6.85    6.77    6.69
   254.01   256.00     9.51     9.15    9.07    8.99    8.91    8.83     8.75     8.66    7.25    7.17    7.09    7.01    6.93    6.84    6.76
   256.01   258.00     9.61     9.25    9.17    9.09    9.01    8.93     8.85     8.77    7.32    7.24    7.16    7.08    7.00    6.92    6.84
   258.01   260.00     9.71     9.35    9.27    9.19    9.11    9.03     8.95     8.87    7.40    7.32    7.24    7.16    7.08    6.99    6.91
   260.01   262.00     9.82     9.45    9.37    9.29    9.21    9.13     9.05     8.97    7.47    7.39    7.31    7.23    7.15    7.07    6.99
   262.01   264.00     9.92     9.55    9.47    9.39    9.31    9.23     9.15     9.07    7.55    7.47    7.39    7.31    7.23    7.14    7.06
   264.01   266.00    10.02     9.65    9.57    9.49    9.41    9.33     9.25     9.17    7.62    7.54    7.46    7.38    7.30    7.22    7.14
   266.01   268.00    10.12     9.76    9.67    9.59    9.51    9.43     9.35     9.27    7.70    7.62    7.54    7.46    7.38    7.29    7.21
   268.01   270.00    10.22     9.86    9.78    9.69    9.61    9.53     9.45     9.37    7.77    7.69    7.61    7.53    7.45    7.37    7.29
   270.01   272.00    10.32     9.96    9.88    9.80    9.71    9.63     9.55     9.47    7.85    7.77    7.69    7.61    7.53    7.44    7.36
   272.01   274.00    10.42    10.06    9.98    9.90    9.82    9.73     9.65     9.57    7.92    7.84    7.76    7.68    7.60    7.52    7.44
   274.01   276.00    10.52    10.16   10.08   10.00    9.92    9.84     9.76     9.67    8.00    7.92    7.84    7.76    7.68    7.59    7.51
   276.01   278.00    10.62    10.26   10.18   10.10   10.02    9.94     9.86     9.78    8.07    7.99    7.91    7.83    7.75    7.67    7.59
   278.01   280.00    10.72    10.36   10.28   10.20   10.12   10.04     9.96     9.88    8.15    8.07    7.99    7.91    7.83    7.74    7.66
   280.01   282.00    10.83    10.46   10.38   10.30   10.22   10.14    10.06     9.98    8.22    8.14    8.06    7.98    7.90    7.82    7.74
   282.01   284.00    10.93    10.56   10.48   10.40   10.32   10.24    10.16    10.08    8.30    8.22    8.14    8.06    7.98    7.89    7.81
   284.01   286.00    11.03    10.66   10.58   10.50   10.42   10.34    10.26    10.18    8.37    8.29    8.21    8.13    8.05    7.97    7.89
   286.01   288.00    11.13    10.77   10.68   10.60   10.52   10.44    10.36    10.28    8.45    8.37    8.29    8.21    8.13    8.04    7.96
   288.01   290.00    11.23    10.87   10.79   10.70   10.62   10.54    10.46    10.38    8.52    8.44    8.36    8.28    8.20    8.12    8.04
   290.01   292.00    11.33    10.97   10.89   10.81   10.72   10.64    10.56    10.48    8.60    8.52    8.44    8.36    8.28    8.19    8.11
   292.01   294.00    11.43    11.07   10.99   10.91   10.83   10.74    10.66    10.58    8.67    8.59    8.51    8.43    8.35    8.27    8.19
   294.01   296.00    11.53    11.17   11.09   11.01   10.93   10.85    10.77    10.68    8.75    8.67    8.59    8.51    8.43    8.34    8.26
   296.01   298.00    11.63    11.27   11.19   11.11   11.03   10.95    10.87    10.79    8.82    8.74    8.66    8.58    8.50    8.42    8.34
   298.01   300.00    11.73    11.37   11.29   11.21   11.13   11.05    10.97    10.89    8.90    8.82    8.74    8.66    8.58    8.49    8.41
   300.01   302.00    11.84    11.47   11.39   11.31   11.23   11.15    11.07    10.99    8.97    8.89    8.81    8.73    8.65    8.57    8.49
   302.01   304.00    11.94    11.57   11.49   11.41   11.33   11.25    11.17    11.09    9.05    8.97    8.89    8.81    8.73    8.64    8.56
   304.01   306.00    12.04    11.67   11.59   11.51   11.43   11.35    11.27    11.19    9.12    9.04    8.96    8.88    8.80    8.72    8.64
   306.01   308.00    12.14    11.78   11.69   11.61   11.53   11.45    11.37    11.29    9.20    9.12    9.04    8.96    8.88    8.79    8.71
   308.01   310.00    12.24    11.88   11.80   11.71   11.63   11.55    11.47    11.39    9.27    9.19    9.11    9.03    8.95    8.87    8.79
   310.01   312.00    12.34    11.98   11.90   11.82   11.73   11.65    11.57    11.49    9.35    9.27    9.19    9.11    9.03    8.94    8.86
   312.01   314.00    12.44    12.08   12.00   11.92   11.84   11.75    11.67    11.59    9.42    9.34    9.26    9.18    9.10    9.02    8.94
   314.01   316.00    12.54    12.18   12.10   12.02   11.94   11.86    11.78    11.69    9.50    9.42    9.34    9.26    9.18    9.09    9.01
   316.01   318.00    12.64    12.28   12.20   12.12   12.04   11.96    11.88    11.80    9.57    9.49    9.41    9.33    9.25    9.17    9.09
   318.01   320.00    12.74    12.38   12.30   12.22   12.14   12.06    11.98    11.90    9.65    9.57    9.49    9.41    9.33    9.24    9.16
   320.01   322.00    12.85    12.48   12.40   12.32   12.24   12.16    12.08    12.00    9.72    9.64    9.56    9.48    9.40    9.32    9.24
   322.01   324.00    12.95    12.58   12.50   12.42   12.34   12.26    12.18    12.10    9.80    9.72    9.64    9.56    9.48    9.39    9.31
   324.01   326.00    13.05    12.68   12.60   12.52   12.44   12.36    12.28    12.20    9.87    9.79    9.71    9.63    9.55    9.47    9.39
   326.01   328.00    13.15    12.79   12.70   12.62   12.54   12.46    12.38    12.30    9.95    9.87    9.79    9.71    9.63    9.54    9.46
   328.01   330.00    13.25    12.89   12.81   12.72   12.64   12.56    12.48    12.40   10.02    9.94    9.86    9.78    9.70    9.62    9.54
   330.01   332.00    13.35    12.99   12.91   12.83   12.74   12.66    12.58    12.50   10.10   10.02    9.94    9.86    9.78    9.69    9.61
   332.01   334.00    13.45    13.09   13.01   12.93   12.85   12.76    12.68    12.60   10.17   10.09   10.01    9.93    9.85    9.77    9.69
   334.01   336.00    13.55    13.19   13.11   13.03   12.95   12.87    12.79    12.70   10.25   10.17   10.09   10.01    9.93    9.84    9.76
   336.01   338.00    13.65    13.29   13.21   13.13   13.05   12.97    12.89    12.81   10.32   10.24   10.16   10.08   10.00    9.92    9.84
   338.01   340.00    13.75    13.39   13.31   13.23   13.15   13.07    12.99    12.91   10.40   10.32   10.24   10.16   10.08    9.99    9.91
   340.01   342.00    13.86    13.49   13.41   13.33   13.25   13.17    13.09    13.01   10.47   10.39   10.31   10.23   10.15   10.07    9.99
   342.01   344.00    13.96    13.59   13.51   13.43   13.35   13.27    13.19    13.11   10.55   10.47   10.39   10.31   10.23   10.14   10.06
   344.01   346.00    14.06    13.69   13.61   13.53   13.45   13.37    13.29    13.21   10.62   10.54   10.46   10.38   10.30   10.22   10.14
   346.01   348.00    14.16    13.80   13.71   13.63   13.55   13.47    13.39    13.31   10.70   10.62   10.54   10.46   10.38   10.29   10.21
   348.01   350.00    14.26    13.90   13.82   13.73   13.65   13.57    13.49    13.41   10.77   10.69   10.61   10.53   10.45   10.37   10.29
   350.01   352.00    14.36    14.00   13.92   13.84   13.75   13.67    13.59    13.51   10.85   10.77   10.69   10.61   10.53   10.44   10.36
   352.01   354.00    14.46    14.10   14.02   13.94   13.86   13.77    13.69    13.61   10.92   10.84   10.76   10.68   10.60   10.52   10.44


   Louisiana Administrative Code                 December 2011         90
                                                                      Title 61, Part I

                                                       Daily Louisiana Income Tax Withholding Table
Exemptions:             0                                    1                                                                  2
Dependents:
   SalaryRange:
  Min       Max         0        0        1         2          3      4        5         6          0        1        2         3          4      5       6
   354.01   356.00      14.56    14.20   14.12      14.04     13.96   13.88    13.80     13.71      11.00    10.92   10.84      10.76     10.68   10.59   10.51
   356.01   358.00      14.66    14.30   14.22      14.14     14.06   13.98    13.90     13.82      11.07    10.99   10.91      10.83     10.75   10.67   10.59
   358.01   360.00      14.76    14.40   14.32      14.24     14.16   14.08    14.00     13.92      11.15    11.07   10.99      10.91     10.83   10.74   10.66
   360.01   362.00      14.87    14.50   14.42      14.34     14.26   14.18    14.10     14.02      11.22    11.14   11.06      10.98     10.90   10.82   10.74
   362.01   364.00      14.97    14.60   14.52      14.44     14.36   14.28    14.20     14.12      11.30    11.22   11.14      11.06     10.98   10.89   10.81
   364.01   366.00      15.07    14.70   14.62      14.54     14.46   14.38    14.30     14.22      11.37    11.29   11.21      11.13     11.05   10.97   10.89
   366.01   368.00      15.17    14.81   14.72      14.64     14.56   14.48    14.40     14.32      11.45    11.37   11.29      11.21     11.13   11.04   10.96
   368.01   370.00      15.27    14.91   14.83      14.74     14.66   14.58    14.50     14.42      11.52    11.44   11.36      11.28     11.20   11.12   11.04
   370.01   372.00      15.37    15.01   14.93      14.85     14.76   14.68    14.60     14.52      11.60    11.52   11.44      11.36     11.28   11.19   11.11
   372.01   374.00      15.47    15.11   15.03      14.95     14.87   14.78    14.70     14.62      11.67    11.59   11.51      11.43     11.35   11.27   11.19
   374.01   376.00      15.57    15.21   15.13      15.05     14.97   14.89    14.81     14.72      11.75    11.67   11.59      11.51     11.43   11.34   11.26
   376.01   378.00      15.67    15.31   15.23      15.15     15.07   14.99    14.91     14.83      11.82    11.74   11.66      11.58     11.50   11.42   11.34
   378.01   380.00      15.77    15.41   15.33      15.25     15.17   15.09    15.01     14.93      11.90    11.82   11.74      11.66     11.58   11.49   11.41
   380.01   382.00      15.88    15.51   15.43      15.35     15.27   15.19    15.11     15.03      11.97    11.89   11.81      11.73     11.65   11.57   11.49
   382.01   384.00      15.98    15.61   15.53      15.45     15.37   15.29    15.21     15.13      12.05    11.97   11.89      11.81     11.73   11.64   11.56
   384.01   386.00      16.08    15.71   15.63      15.55     15.47   15.39    15.31     15.23      12.13    12.05   11.97      11.89     11.81   11.73   11.64
                     (Add 5.05% for amounts in excess of $386)                                   (Add 5.10% for amounts in excess of $386)

                                                      Weekly Louisiana Income Tax Withholding Table
Exemptions:             0                                   1                                                                   2
Dependents:
   SalaryRange:
  Min       Max         0        0         1        2        3        4         5        6          0        1         2        3        4        5       6
     0.00    50.00      2.1%      0.00      0.00     0.00     0.00     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
    50.01    70.00       1.26     0.00      0.00     0.00     0.00     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
    70.01    90.00       1.68     0.00      0.00     0.00     0.00     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
    90.01   110.00       2.10     0.28      0.00     0.00     0.00     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
   110.01   130.00       2.52     0.70      0.30     0.00     0.00     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
   130.01   150.00       2.94     1.12      0.72     0.32     0.00     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
   150.01   170.00       3.36     1.54      1.14     0.74     0.33     0.00     0.00      0.00       0.00     0.00      0.00     0.00     0.00     0.00    0.00
   170.01   190.00       3.78     1.96      1.56     1.16     0.75     0.35     0.00      0.00       0.15     0.00      0.00     0.00     0.00     0.00    0.00
   190.01   210.00       4.20     2.38      1.98     1.58     1.17     0.77     0.36      0.00       0.57     0.16      0.00     0.00     0.00     0.00    0.00
   210.01   230.00       4.62     2.80      2.40     2.00     1.59     1.19     0.78      0.38       0.99     0.58      0.18     0.00     0.00     0.00    0.00
   230.01   250.00       5.04     3.22      2.82     2.42     2.01     1.61     1.20      0.80       1.41     1.00      0.60     0.19     0.00     0.00    0.00
   250.01   270.00       5.77     3.96      3.55     3.15     2.74     2.34     1.94      1.53       1.83     1.42      1.02     0.61     0.21     0.00    0.00
   270.01   290.00       6.51     4.70      4.29     3.89     3.48     3.08     2.68      2.27       2.25     1.84      1.44     1.03     0.63     0.23    0.00
   290.01   310.00       7.25     5.44      5.03     4.63     4.22     3.82     3.42      3.01       2.67     2.26      1.86     1.45     1.05     0.65    0.24
   310.01   330.00       7.99     6.18      5.77     5.37     4.96     4.56     4.16      3.75       3.09     2.68      2.28     1.87     1.47     1.07    0.66
   330.01   350.00       8.73     6.92      6.51     6.11     5.70     5.30     4.90      4.49       3.51     3.10      2.70     2.29     1.89     1.49    1.08
   350.01   370.00       9.47     7.66      7.25     6.85     6.44     6.04     5.64      5.23       3.93     3.52      3.12     2.71     2.31     1.91    1.50
   370.01   390.00      10.21     8.40      7.99     7.59     7.18     6.78     6.38      5.97       4.35     3.94      3.54     3.13     2.73     2.33    1.92
   390.01   410.00      10.95     9.14      8.73     8.33     7.92     7.52     7.12      6.71       4.77     4.36      3.96     3.55     3.15     2.75    2.34
   410.01   430.00      11.69     9.88      9.47     9.07     8.66     8.26     7.86      7.45       5.19     4.78      4.38     3.97     3.57     3.17    2.76
   430.01   450.00      12.43    10.62     10.21     9.81     9.40     9.00     8.60      8.19       5.61     5.20      4.80     4.39     3.99     3.59    3.18
   450.01   470.00      13.17    11.36     10.95    10.55    10.14     9.74     9.34      8.93       6.03     5.62      5.22     4.81     4.41     4.01    3.60
   470.01   490.00      13.91    12.10     11.69    11.29    10.88    10.48    10.08      9.67       6.45     6.04      5.64     5.23     4.83     4.43    4.02
   490.01   510.00      14.65    12.84     12.43    12.03    11.62    11.22    10.82     10.41       7.18     6.78      6.38     5.97     5.57     5.16    4.76
   510.01   530.00      15.39    13.58     13.17    12.77    12.36    11.96    11.56     11.15       7.93     7.53      7.13     6.72     6.32     5.91    5.51
   530.01   550.00      16.13    14.32     13.91    13.51    13.10    12.70    12.30     11.89       8.68     8.28      7.88     7.47     7.07     6.66    6.26
   550.01   570.00      16.87    15.06     14.65    14.25    13.84    13.44    13.04     12.63       9.43     9.03      8.63     8.22     7.82     7.41    7.01
   570.01   590.00      17.61    15.80     15.39    14.99    14.58    14.18    13.78     13.37      10.18     9.78      9.38     8.97     8.57     8.16    7.76
   590.01   610.00      18.35    16.54     16.13    15.73    15.32    14.92    14.52     14.11      10.93    10.53     10.13     9.72     9.32     8.91    8.51
   610.01   630.00      19.09    17.28     16.87    16.47    16.06    15.66    15.26     14.85      11.68    11.28     10.88    10.47    10.07     9.66    9.26
   630.01   650.00      19.83    18.02     17.61    17.21    16.80    16.40    16.00     15.59      12.43    12.03     11.63    11.22    10.82    10.41   10.01
   650.01   670.00      20.57    18.76     18.35    17.95    17.54    17.14    16.74     16.33      13.18    12.78     12.38    11.97    11.57    11.16   10.76
   670.01   690.00      21.31    19.50     19.09    18.69    18.28    17.88    17.48     17.07      13.93    13.53     13.13    12.72    12.32    11.91   11.51
   690.01   710.00      22.05    20.24     19.83    19.43    19.02    18.62    18.22     17.81      14.68    14.28     13.88    13.47    13.07    12.66   12.26
   710.01   730.00      22.79    20.98     20.57    20.17    19.76    19.36    18.96     18.55      15.43    15.03     14.63    14.22    13.82    13.41   13.01
   730.01   750.00      23.53    21.72     21.31    20.91    20.50    20.10    19.70     19.29      16.18    15.78     15.38    14.97    14.57    14.16   13.76
   750.01   770.00      24.27    22.46     22.05    21.65    21.24    20.84    20.44     20.03      16.93    16.53     16.13    15.72    15.32    14.91   14.51
   770.01   790.00      25.01    23.20     22.79    22.39    21.98    21.58    21.18     20.77      17.68    17.28     16.88    16.47    16.07    15.66   15.26
   790.01   810.00      25.75    23.94     23.53    23.13    22.72    22.32    21.92     21.51      18.43    18.03     17.63    17.22    16.82    16.41   16.01
   810.01   830.00      26.49    24.68     24.27    23.87    23.46    23.06    22.66     22.25      19.18    18.78     18.38    17.97    17.57    17.16   16.76
   830.01   850.00      27.23    25.42     25.01    24.61    24.20    23.80    23.40     22.99      19.93    19.53     19.13    18.72    18.32    17.91   17.51


                                                                              91         Louisiana Administrative Code                      December 2011
                                                              REVENUE AND TAXATION

                                                       Weekly Louisiana Income Tax Withholding Table
Exemptions:              0                                   1                                                                 2
Dependents:
   SalaryRange:
   Min      Max          0        0        1         2         3       4         5      6          0        1        2         3         4       5       6
    850.01   870.00      27.97    26.16   25.75      25.35     24.94   24.54    24.14   23.73      20.68    20.28   19.88      19.47     19.07   18.66   18.26
    870.01   890.00      28.71    26.90   26.49      26.09     25.68   25.28    24.88   24.47      21.43    21.03   20.63      20.22     19.82   19.41   19.01
    890.01   910.00      29.45    27.64   27.23      26.83     26.42   26.02    25.62   25.21      22.18    21.78   21.38      20.97     20.57   20.16   19.76
    910.01   930.00      30.19    28.38   27.97      27.57     27.16   26.76    26.36   25.95      22.93    22.53   22.13      21.72     21.32   20.91   20.51
    930.01   950.00      30.93    29.12   28.71      28.31     27.90   27.50    27.10   26.69      23.68    23.28   22.88      22.47     22.07   21.66   21.26
    950.01   970.00      31.67    29.86   29.45      29.05     28.64   28.24    27.84   27.43      24.43    24.03   23.63      23.22     22.82   22.41   22.01
    970.01   990.00      32.66    30.85   30.44      30.04     29.63   29.23    28.83   28.42      25.18    24.78   24.38      23.97     23.57   23.16   22.76
    990.01 1,010.00      33.67    31.86   31.45      31.05     30.64   30.24    29.84   29.43      25.93    25.53   25.13      24.72     24.32   23.91   23.51
  1,010.01 1,030.00      34.68    32.87   32.46      32.06     31.65   31.25    30.85   30.44      26.68    26.28   25.88      25.47     25.07   24.66   24.26
  1,030.01 1,050.00      35.69    33.88   33.47      33.07     32.66   32.26    31.86   31.45      27.43    27.03   26.63      26.22     25.82   25.41   25.01
  1,050.01 1,070.00      36.70    34.89   34.48      34.08     33.67   33.27    32.87   32.46      28.18    27.78   27.38      26.97     26.57   26.16   25.76
  1,070.01 1,090.00      37.71    35.90   35.49      35.09     34.68   34.28    33.88   33.47      28.93    28.53   28.13      27.72     27.32   26.91   26.51
  1,090.01 1,110.00      38.72    36.91   36.50      36.10     35.69   35.29    34.89   34.48      29.68    29.28   28.88      28.47     28.07   27.66   27.26
  1,110.01 1,130.00      39.73    37.92   37.51      37.11     36.70   36.30    35.90   35.49      30.43    30.03   29.63      29.22     28.82   28.41   28.01
  1,130.01 1,150.00      40.74    38.93   38.52      38.12     37.71   37.31    36.91   36.50      31.18    30.78   30.38      29.97     29.57   29.16   28.76
  1,150.01 1,170.00      41.75    39.94   39.53      39.13     38.72   38.32    37.92   37.51      31.93    31.53   31.13      30.72     30.32   29.91   29.51
  1,170.01 1,190.00      42.76    40.95   40.54      40.14     39.73   39.33    38.93   38.52      32.68    32.28   31.88      31.47     31.07   30.66   30.26
  1,190.01 1,210.00      43.77    41.96   41.55      41.15     40.74   40.34    39.94   39.53      33.43    33.03   32.63      32.22     31.82   31.41   31.01
  1,210.01 1,230.00      44.78    42.97   42.56      42.16     41.75   41.35    40.95   40.54      34.18    33.78   33.38      32.97     32.57   32.16   31.76
  1,230.01 1,250.00      45.79    43.98   43.57      43.17     42.76   42.36    41.96   41.55      34.93    34.53   34.13      33.72     33.32   32.91   32.51
  1,250.01 1,270.00      46.80    44.99   44.58      44.18     43.77   43.37    42.97   42.56      35.68    35.28   34.88      34.47     34.07   33.66   33.26
  1,270.01 1,290.00      47.81    46.00   45.59      45.19     44.78   44.38    43.98   43.57      36.43    36.03   35.63      35.22     34.82   34.41   34.01
  1,290.01 1,310.00      48.82    47.01   46.60      46.20     45.79   45.39    44.99   44.58      37.18    36.78   36.38      35.97     35.57   35.16   34.76
  1,310.01 1,330.00      49.83    48.02   47.61      47.21     46.80   46.40    46.00   45.59      37.93    37.53   37.13      36.72     36.32   35.91   35.51
  1,330.01 1,350.00      50.84    49.03   48.62      48.22     47.81   47.41    47.01   46.60      38.68    38.28   37.88      37.47     37.07   36.66   36.26
  1,350.01 1,370.00      51.85    50.04   49.63      49.23     48.82   48.42    48.02   47.61      39.43    39.03   38.63      38.22     37.82   37.41   37.01
  1,370.01 1,390.00      52.86    51.05   50.64      50.24     49.83   49.43    49.03   48.62      40.18    39.78   39.38      38.97     38.57   38.16   37.76
  1,390.01 1,410.00      53.87    52.06   51.65      51.25     50.84   50.44    50.04   49.63      40.93    40.53   40.13      39.72     39.32   38.91   38.51
  1,410.01 1,430.00      54.88    53.07   52.66      52.26     51.85   51.45    51.05   50.64      41.68    41.28   40.88      40.47     40.07   39.66   39.26
  1,430.01 1,450.00      55.89    54.08   53.67      53.27     52.86   52.46    52.06   51.65      42.43    42.03   41.63      41.22     40.82   40.41   40.01
  1,450.01 1,470.00      56.90    55.09   54.68      54.28     53.87   53.47    53.07   52.66      43.18    42.78   42.38      41.97     41.57   41.16   40.76
  1,470.01 1,490.00      57.91    56.10   55.69      55.29     54.88   54.48    54.08   53.67      43.93    43.53   43.13      42.72     42.32   41.91   41.51
  1,490.01 1,510.00      58.92    57.11   56.70      56.30     55.89   55.49    55.09   54.68      44.68    44.28   43.88      43.47     43.07   42.66   42.26
  1,510.01 1,530.00      59.93    58.12   57.71      57.31     56.90   56.50    56.10   55.69      45.43    45.03   44.63      44.22     43.82   43.41   43.01
  1,530.01 1,550.00      60.94    59.13   58.72      58.32     57.91   57.51    57.11   56.70      46.18    45.78   45.38      44.97     44.57   44.16   43.76
  1,550.01 1,570.00      61.95    60.14   59.73      59.33     58.92   58.52    58.12   57.71      46.93    46.53   46.13      45.72     45.32   44.91   44.51
  1,570.01 1,590.00      62.96    61.15   60.74      60.34     59.93   59.53    59.13   58.72      47.68    47.28   46.88      46.47     46.07   45.66   45.26
  1,590.01 1,610.00      63.97    62.16   61.75      61.35     60.94   60.54    60.14   59.73      48.43    48.03   47.63      47.22     46.82   46.41   46.01
  1,610.01 1,630.00      64.98    63.17   62.76      62.36     61.95   61.55    61.15   60.74      49.18    48.78   48.38      47.97     47.57   47.16   46.76
  1,630.01 1,650.00      65.99    64.18   63.77      63.37     62.96   62.56    62.16   61.75      49.93    49.53   49.13      48.72     48.32   47.91   47.51
  1,650.01 1,670.00      67.00    65.19   64.78      64.38     63.97   63.57    63.17   62.76      50.68    50.28   49.88      49.47     49.07   48.66   48.26
  1,670.01 1,690.00      68.01    66.20   65.79      65.39     64.98   64.58    64.18   63.77      51.43    51.03   50.63      50.22     49.82   49.41   49.01
  1,690.01 1,710.00      69.02    67.21   66.80      66.40     65.99   65.59    65.19   64.78      52.18    51.78   51.38      50.97     50.57   50.16   49.76
  1,710.01 1,730.00      70.03    68.22   67.81      67.41     67.00   66.60    66.20   65.79      52.93    52.53   52.13      51.72     51.32   50.91   50.51
  1,730.01 1,750.00      71.04    69.23   68.82      68.42     68.01   67.61    67.21   66.80      53.68    53.28   52.88      52.47     52.07   51.66   51.26
  1,750.01 1,770.00      72.05    70.24   69.83      69.43     69.02   68.62    68.22   67.81      54.43    54.03   53.63      53.22     52.82   52.41   52.01
  1,770.01 1,790.00      73.06    71.25   70.84      70.44     70.03   69.63    69.23   68.82      55.18    54.78   54.38      53.97     53.57   53.16   52.76
  1,790.01 1,810.00      74.07    72.26   71.85      71.45     71.04   70.64    70.24   69.83      55.93    55.53   55.13      54.72     54.32   53.91   53.51
  1,810.01 1,830.00      75.08    73.27   72.86      72.46     72.05   71.65    71.25   70.84      56.68    56.28   55.88      55.47     55.07   54.66   54.26
  1,830.01 1,850.00      76.09    74.28   73.87      73.47     73.06   72.66    72.26   71.85      57.43    57.03   56.63      56.22     55.82   55.41   55.01
  1,850.01 1,870.00      77.10    75.29   74.88      74.48     74.07   73.67    73.27   72.86      58.18    57.78   57.38      56.97     56.57   56.16   55.76
  1,870.01 1,890.00      78.11    76.30   75.89      75.49     75.08   74.68    74.28   73.87      58.93    58.53   58.13      57.72     57.32   56.91   56.51
  1,890.01 1,910.00      79.12    77.31   76.90      76.50     76.09   75.69    75.29   74.88      59.68    59.28   58.88      58.47     58.07   57.66   57.26
  1,910.01 1,930.00      80.13    78.32   77.91      77.51     77.10   76.70    76.30   75.89      60.43    60.03   59.63      59.22     58.82   58.41   58.01
  1,930.01 1,950.00      81.14    79.33   78.92      78.52     78.11   77.71    77.31   76.90      61.41    61.01   60.60      60.20     59.80   59.39   58.99
  1,850.01 1,870.00      77.10    75.29   74.88      74.48     74.07   73.67    73.27   72.86      58.18    57.78   57.38      56.97     56.57   56.16   55.76
  1,870.01 1,890.00      78.11    76.30   75.89      75.49     75.08   74.68    74.28   73.87      58.93    58.53   58.13      57.72     57.32   56.91   56.51
  1,890.01 1,910.00      79.12    77.31   76.90      76.50     76.09   75.69    75.29   74.88      59.68    59.28   58.88      58.47     58.07   57.66   57.26
  1,910.01 1,930.00      80.13    78.32   77.91      77.51     77.10   76.70    76.30   75.89      60.43    60.03   59.63      59.22     58.82   58.41   58.01
  1,930.01 1,950.00      81.14    79.33   78.92      78.52     78.11   77.71    77.31   76.90      61.41    61.01   60.60      60.20     59.80   59.39   58.99
                      (Add 5.05% for amounts in excess of $1,950)                               (Add 5.10% for amounts in excess of $1,950)




   Louisiana Administrative Code                        December 2011          92
                                                                Title 61, Part I

                                                Biweekly Louisiana Income Tax Withholding Table
Exemptions:             0                                1                                                             2
Dependents:
    SalaryRange:
   Min       Max        0       0       1       2       3        4            5       6       0        1       2       3       4       5       6
       0.00    100.00   2.1%     0.00    0.00    0.00    0.00     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     100.01    140.00    2.52    0.00    0.00    0.00    0.00     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     140.01    180.00    3.36    0.00    0.00    0.00    0.00     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     180.01    220.00    4.20    0.57    0.00    0.00    0.00     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     220.01    260.00    5.04    1.41    0.60    0.00    0.00     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     260.01    300.00    5.88    2.25    1.44    0.63    0.00     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     300.01    340.00    6.72    3.09    2.28    1.47    0.66     0.00         0.00    0.00    0.00     0.00    0.00    0.00    0.00    0.00    0.00
     340.01    380.00    7.56    3.93    3.12    2.31    1.50     0.69         0.00    0.00    0.29     0.00    0.00    0.00    0.00    0.00    0.00
     380.01    420.00    8.40    4.77    3.96    3.15    2.34     1.54         0.73    0.00    1.13     0.32    0.00    0.00    0.00    0.00    0.00
     420.01    460.00    9.24    5.61    4.80    3.99    3.18     2.38         1.57    0.76    1.97     1.16    0.36    0.00    0.00    0.00    0.00
     460.01    500.00   10.08    6.45    5.64    4.83    4.02     3.22         2.41    1.60    2.81     2.00    1.20    0.39    0.00    0.00    0.00
     500.01    540.00   11.55    7.91    7.11    6.30    5.49     4.68         3.87    3.07    3.65     2.84    2.04    1.23    0.42    0.00    0.00
     540.01    580.00   13.03    9.39    8.59    7.78    6.97     6.16         5.35    4.55    4.49     3.68    2.88    2.07    1.26    0.45    0.00
     580.01    620.00   14.51   10.87   10.07    9.26    8.45     7.64         6.83    6.03    5.33     4.52    3.72    2.91    2.10    1.29    0.48
     620.01    660.00   15.99   12.35   11.55   10.74    9.93     9.12         8.31    7.51    6.17     5.36    4.56    3.75    2.94    2.13    1.33
     660.01    700.00   17.47   13.83   13.03   12.22   11.41    10.60         9.79    8.99    7.01     6.20    5.40    4.59    3.78    2.97    2.17
     700.01    740.00   18.95   15.31   14.51   13.70   12.89    12.08        11.27   10.47    7.85     7.04    6.24    5.43    4.62    3.81    3.01
     740.01    780.00   20.43   16.79   15.99   15.18   14.37    13.56        12.75   11.95    8.69     7.88    7.08    6.27    5.46    4.65    3.85
     780.01    820.00   21.91   18.27   17.47   16.66   15.85    15.04        14.23   13.43    9.53     8.72    7.92    7.11    6.30    5.49    4.69
     820.01    860.00   23.39   19.75   18.95   18.14   17.33    16.52        15.71   14.91   10.37     9.56    8.76    7.95    7.14    6.33    5.53
     860.01    900.00   24.87   21.23   20.43   19.62   18.81    18.00        17.19   16.39   11.21    10.40    9.60    8.79    7.98    7.17    6.37
     900.01    940.00   26.35   22.71   21.91   21.10   20.29    19.48        18.67   17.87   12.05    11.24   10.44    9.63    8.82    8.01    7.21
     940.01    980.00   27.83   24.19   23.39   22.58   21.77    20.96        20.15   19.35   12.89    12.08   11.28   10.47    9.66    8.85    8.05
     980.01  1,020.00   29.31   25.67   24.87   24.06   23.25    22.44        21.63   20.83   14.37    13.56   12.75   11.94   11.13   10.33    9.52
   1,020.01  1,060.00   30.79   27.15   26.35   25.54   24.73    23.92        23.11   22.31   15.87    15.06   14.25   13.44   12.63   11.83   11.02
   1,060.01  1,100.00   32.27   28.63   27.83   27.02   26.21    25.40        24.59   23.79   17.37    16.56   15.75   14.94   14.13   13.33   12.52
   1,100.01  1,140.00   33.75   30.11   29.31   28.50   27.69    26.88        26.07   25.27   18.87    18.06   17.25   16.44   15.63   14.83   14.02
   1,140.01  1,180.00   35.23   31.59   30.79   29.98   29.17    28.36        27.55   26.75   20.37    19.56   18.75   17.94   17.13   16.33   15.52
   1,180.01  1,220.00   36.71   33.07   32.27   31.46   30.65    29.84        29.03   28.23   21.87    21.06   20.25   19.44   18.63   17.83   17.02
   1,220.01  1,260.00   38.19   34.55   33.75   32.94   32.13    31.32        30.51   29.71   23.37    22.56   21.75   20.94   20.13   19.33   18.52
   1,260.01  1,300.00   39.67   36.03   35.23   34.42   33.61    32.80        31.99   31.19   24.87    24.06   23.25   22.44   21.63   20.83   20.02
   1,300.01  1,340.00   41.15   37.51   36.71   35.90   35.09    34.28        33.47   32.67   26.37    25.56   24.75   23.94   23.13   22.33   21.52
   1,340.01  1,380.00   42.63   38.99   38.19   37.38   36.57    35.76        34.95   34.15   27.87    27.06   26.25   25.44   24.63   23.83   23.02
   1,380.01  1,420.00   44.11   40.47   39.67   38.86   38.05    37.24        36.43   35.63   29.37    28.56   27.75   26.94   26.13   25.33   24.52
   1,420.01  1,460.00   45.59   41.95   41.15   40.34   39.53    38.72        37.91   37.11   30.87    30.06   29.25   28.44   27.63   26.83   26.02
   1,460.01  1,500.00   47.07   43.43   42.63   41.82   41.01    40.20        39.39   38.59   32.37    31.56   30.75   29.94   29.13   28.33   27.52
   1,500.01  1,540.00   48.55   44.91   44.11   43.30   42.49    41.68        40.87   40.07   33.87    33.06   32.25   31.44   30.63   29.83   29.02
   1,540.01  1,580.00   50.03   46.39   45.59   44.78   43.97    43.16        42.35   41.55   35.37    34.56   33.75   32.94   32.13   31.33   30.52
   1,580.01  1,620.00   51.51   47.87   47.07   46.26   45.45    44.64        43.83   43.03   36.87    36.06   35.25   34.44   33.63   32.83   32.02
   1,620.01  1,660.00   52.99   49.35   48.55   47.74   46.93    46.12        45.31   44.51   38.37    37.56   36.75   35.94   35.13   34.33   33.52
   1,660.01  1,700.00   54.47   50.83   50.03   49.22   48.41    47.60        46.79   45.99   39.87    39.06   38.25   37.44   36.63   35.83   35.02
   1,700.01  1,740.00   55.95   52.31   51.51   50.70   49.89    49.08        48.27   47.47   41.37    40.56   39.75   38.94   38.13   37.33   36.52
   1,740.01  1,780.00   57.43   53.79   52.99   52.18   51.37    50.56        49.75   48.95   42.87    42.06   41.25   40.44   39.63   38.83   38.02
   1,780.01  1,820.00   58.91   55.27   54.47   53.66   52.85    52.04        51.23   50.43   44.37    43.56   42.75   41.94   41.13   40.33   39.52
   1,820.01  1,860.00   60.39   56.75   55.95   55.14   54.33    53.52        52.71   51.91   45.87    45.06   44.25   43.44   42.63   41.83   41.02
   1,860.01  1,900.00   61.87   58.23   57.43   56.62   55.81    55.00        54.19   53.39   47.37    46.56   45.75   44.94   44.13   43.33   42.52
   1,900.01  1,940.00   63.35   59.71   58.91   58.10   57.29    56.48        55.67   54.87   48.87    48.06   47.25   46.44   45.63   44.83   44.02
   1,940.01  1,980.00   65.33   61.69   60.88   60.08   59.27    58.46        57.65   56.85   50.37    49.56   48.75   47.94   47.13   46.33   45.52
   1,980.01  2,020.00   67.35   63.71   62.90   62.10   61.29    60.48        59.67   58.87   51.87    51.06   50.25   49.44   48.63   47.83   47.02
   2,020.01  2,060.00   69.37   65.73   64.92   64.12   63.31    62.50        61.69   60.89   53.37    52.56   51.75   50.94   50.13   49.33   48.52
   2,060.01  2,100.00   71.39   67.75   66.94   66.14   65.33    64.52        63.71   62.91   54.87    54.06   53.25   52.44   51.63   50.83   50.02
   2,100.01  2,140.00   73.41   69.77   68.96   68.16   67.35    66.54        65.73   64.93   56.37    55.56   54.75   53.94   53.13   52.33   51.52
   2,140.01  2,180.00   75.43   71.79   70.98   70.18   69.37    68.56        67.75   66.95   57.87    57.06   56.25   55.44   54.63   53.83   53.02
   2,180.01  2,220.00   77.45   73.81   73.00   72.20   71.39    70.58        69.77   68.97   59.37    58.56   57.75   56.94   56.13   55.33   54.52
   2,220.01  2,260.00   79.47   75.83   75.02   74.22   73.41    72.60        71.79   70.99   60.87    60.06   59.25   58.44   57.63   56.83   56.02
   2,260.01  2,300.00   81.49   77.85   77.04   76.24   75.43    74.62        73.81   73.01   62.37    61.56   60.75   59.94   59.13   58.33   57.52
   2,300.01  2,340.00   83.51   79.87   79.06   78.26   77.45    76.64        75.83   75.03   63.87    63.06   62.25   61.44   60.63   59.83   59.02
   2,340.01  2,380.00   85.53   81.89   81.08   80.28   79.47    78.66        77.85   77.05   65.37    64.56   63.75   62.94   62.13   61.33   60.52
   2,380.01  2,420.00   87.55   83.91   83.10   82.30   81.49    80.68        79.87   79.07   66.87    66.06   65.25   64.44   63.63   62.83   62.02
   2,420.01  2,460.00   89.57   85.93   85.12   84.32   83.51    82.70        81.89   81.09   68.37    67.56   66.75   65.94   65.13   64.33   63.52
   2,460.01  2,500.00   91.59   87.95   87.14   86.34   85.53    84.72        83.91   83.11   69.87    69.06   68.25   67.44   66.63   65.83   65.02
   2,500.01  2,540.00   93.61   89.97   89.16   88.36   87.55    86.74        85.93   85.13   71.37    70.56   69.75   68.94   68.13   67.33   66.52
   2,540.01  2,580.00   95.63   91.99   91.18   90.38   89.57    88.76        87.95   87.15   72.87    72.06   71.25   70.44   69.63   68.83   68.02
   2,580.01  2,620.00   97.65   94.01   93.20   92.40   91.59    90.78        89.97   89.17   74.37    73.56   72.75   71.94   71.13   70.33   69.52


                                                                         93           Louisiana Administrative Code              December 2011
                                                               REVENUE AND TAXATION

                                                      Biweekly Louisiana Income Tax Withholding Table
Exemptions:                0                                   1                                                                      2
Dependents:
    SalaryRange:
   Min       Max           0        0       1         2         3        4         5           6          0        1       2         3         4        5        6
   2,620.01  2,660.00     99.67    96.03    95.22     94.42     93.61    92.80     91.99       91.19     75.87    75.06    74.25     73.44     72.63    71.83    71.02
   2,660.01  2,700.00    101.69    98.05    97.24     96.44     95.63    94.82     94.01       93.21     77.37    76.56    75.75     74.94     74.13    73.33    72.52
   2,700.01  2,740.00    103.71 100.07      99.26     98.46     97.65    96.84     96.03       95.23     78.87    78.06    77.25     76.44     75.63    74.83    74.02
   2,740.01  2,780.00    105.73 102.09 101.28 100.48            99.67    98.86     98.05       97.25     80.37    79.56    78.75     77.94     77.13    76.33    75.52
   2,780.01  2,820.00    107.75 104.11 103.30 102.50 101.69             100.88    100.07       99.27     81.87    81.06    80.25     79.44     78.63    77.83    77.02
   2,820.01  2,860.00    109.77 106.13 105.32 104.52 103.71             102.90    102.09      101.29     83.37    82.56    81.75     80.94     80.13    79.33    78.52
   2,860.01  2,900.00    111.79 108.15 107.34 106.54 105.73             104.92    104.11      103.31     84.87    84.06    83.25     82.44     81.63    80.83    80.02
   2,900.01  2,940.00    113.81 110.17 109.36 108.56 107.75             106.94    106.13      105.33     86.37    85.56    84.75     83.94     83.13    82.33    81.52
   2,940.01  2,980.00    115.83 112.19 111.38 110.58 109.77             108.96    108.15      107.35     87.87    87.06    86.25     85.44     84.63    83.83    83.02
   2,980.01  3,020.00    117.85 114.21 113.40 112.60 111.79             110.98    110.17      109.37     89.37    88.56    87.75     86.94     86.13    85.33    84.52
   3,020.01  3,060.00    119.87 116.23 115.42 114.62 113.81             113.00    112.19      111.39     90.87    90.06    89.25     88.44     87.63    86.83    86.02
   3,060.01  3,100.00    121.89 118.25 117.44 116.64 115.83             115.02    114.21      113.41     92.37    91.56    90.75     89.94     89.13    88.33    87.52
   3,100.01  3,140.00    123.91 120.27 119.46 118.66 117.85             117.04    116.23      115.43     93.87    93.06    92.25     91.44     90.63    89.83    89.02
   3,140.01  3,180.00    125.93 122.29 121.48 120.68 119.87             119.06    118.25      117.45     95.37    94.56    93.75     92.94     92.13    91.33    90.52
   3,180.01  3,220.00    127.95 124.31 123.50 122.70 121.89             121.08    120.27      119.47     96.87    96.06    95.25     94.44     93.63    92.83    92.02
   3,220.01  3,260.00    129.97 126.33 125.52 124.72 123.91             123.10    122.29      121.49     98.37    97.56    96.75     95.94     95.13    94.33    93.52
   3,260.01  3,300.00    131.99 128.35 127.54 126.74 125.93             125.12    124.31      123.51     99.87    99.06    98.25     97.44     96.63    95.83    95.02
   3,300.01  3,340.00    134.01 130.37 129.56 128.76 127.95             127.14    126.33      125.53    101.37 100.56      99.75     98.94     98.13    97.33    96.52
   3,340.01  3,380.00    136.03 132.39 131.58 130.78 129.97             129.16    128.35      127.55    102.87 102.06 101.25 100.44            99.63    98.83    98.02
   3,380.01  3,420.00    138.05 134.41 133.60 132.80 131.99             131.18    130.37      129.57    104.37 103.56 102.75 101.94 101.13             100.33    99.52
   3,420.01  3,460.00    140.07 136.43 135.62 134.82 134.01             133.20    132.39      131.59    105.87 105.06 104.25 103.44 102.63             101.83   101.02
   3,460.01  3,500.00    142.09 138.45 137.64 136.84 136.03             135.22    134.41      133.61    107.37 106.56 105.75 104.94 104.13             103.33   102.52
   3,500.01  3,540.00    144.11 140.47 139.66 138.86 138.05             137.24    136.43      135.63    108.87 108.06 107.25 106.44 105.63             104.83   104.02
   3,540.01  3,580.00    146.13 142.49 141.68 140.88 140.07             139.26    138.45      137.65    110.37 109.56 108.75 107.94 107.13             106.33   105.52
   3,580.01  3,620.00    148.15 144.51 143.70 142.90 142.09             141.28    140.47      139.67    111.87 111.06 110.25 109.44 108.63             107.83   107.02
   3,620.01  3,660.00    150.17 146.53 145.72 144.92 144.11             143.30    142.49      141.69    113.37 112.56 111.75 110.94 110.13             109.33   108.52
   3,660.01  3,700.00    152.19 148.55 147.74 146.94 146.13             145.32    144.51      143.71    114.87 114.06 113.25 112.44 111.63             110.83   110.02
   3,700.01  3,740.00    154.21 150.57 149.76 148.96 148.15             147.34    146.53      145.73    116.37 115.56 114.75 113.94 113.13             112.33   111.52
   3,740.01  3,780.00    156.23 152.59 151.78 150.98 150.17             149.36    148.55      147.75    117.87 117.06 116.25 115.44 114.63             113.83   113.02
   3,780.01  3,820.00    158.25 154.61 153.80 153.00 152.19             151.38    150.57      149.77    119.37 118.56 117.75 116.94 116.13             115.33   114.52
   3,820.01  3,860.00    160.27 156.63 155.82 155.02 154.21             153.40    152.59      151.79    120.87 120.06 119.25 118.44 117.63             116.83   116.02
   3,860.01  3,900.00    162.29 158.65 157.84 157.04 156.23             155.42    154.61      153.81    122.82 122.01 121.21 120.40 119.59             118.78   117.98
                        Add 5.05% for amounts in excess of $3,900                                      Add 5.10% for amounts in excess of $3,900

                                                     Semimonthly Louisiana Income Tax Withholding Table
Exemptions:                0                                   1                                                                      2
Dependents:
    SalaryRange:
   Min        Max          0        0        1         2        3        4            5        6          0        1        2         3        4        5        6
           -   100.00      2.1%
      100.01   140.00       2.52     0.00     0.00      0.00    0.00      0.00         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      140.01   180.00       3.36     0.00     0.00      0.00    0.00      0.00         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      180.01   220.00       4.20     0.26     0.00      0.00    0.00      0.00         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      220.01   260.00       5.04     1.10     0.23      0.00    0.00      0.00         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      260.01   300.00       5.88     1.94     1.07      0.19    0.00      0.00         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      300.01   340.00       6.72     2.78     1.91      1.03    0.16      0.00         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      340.01   380.00       7.56     3.62     2.75      1.87    1.00      0.12         0.00     0.00       0.00     0.00     0.00     0.00     0.00      0.00     0.00
      380.01   420.00       8.40     4.46     3.59      2.71    1.84      0.96         0.09     0.00       0.53     0.00     0.00     0.00     0.00      0.00     0.00
      420.01   460.00       9.24     5.30     4.43      3.55    2.68      1.80         0.93     0.05       1.37     0.49     0.00     0.00     0.00      0.00     0.00
      460.01   500.00      10.08     6.14     5.27      4.39    3.52      2.64         1.77     0.89       2.21     1.33     0.46     0.00     0.00      0.00     0.00
      500.01   540.00      10.92     6.98     6.11      5.23    4.36      3.48         2.61     1.73       3.05     2.17     1.30     0.42     0.00      0.00     0.00
      540.01   580.00      12.39     8.45     7.57      6.70    5.82      4.95         4.07     3.20       3.89     3.01     2.14     1.26     0.39      0.00     0.00
      580.01   620.00      13.87     9.93     9.05      8.18    7.30      6.43         5.55     4.68       4.73     3.85     2.98     2.10     1.23      0.35     0.00
      620.01   660.00      15.35    11.41    10.53      9.66    8.78      7.91         7.03     6.16       5.57     4.69     3.82     2.94     2.07      1.19     0.32
      660.01   700.00      16.83    12.89    12.01     11.14   10.26      9.39         8.51     7.64       6.41     5.53     4.66     3.78     2.91      2.03     1.16
      700.01   740.00      18.31    14.37    13.49     12.62   11.74     10.87         9.99     9.12       7.25     6.37     5.50     4.62     3.75      2.87     2.00
      740.01   780.00      19.79    15.85    14.97     14.10   13.22     12.35        11.47    10.60       8.09     7.21     6.34     5.46     4.59      3.71     2.84
      780.01   820.00      21.27    17.33    16.45     15.58   14.70     13.83        12.95    12.08       8.93     8.05     7.18     6.30     5.43      4.55     3.68
      820.01   860.00      22.75    18.81    17.93     17.06   16.18     15.31        14.43    13.56       9.77     8.89     8.02     7.14     6.27      5.39     4.52
      860.01   900.00      24.23    20.29    19.41     18.54   17.66     16.79        15.91    15.04      10.61     9.73     8.86     7.98     7.11      6.23     5.36
      900.01   940.00      25.71    21.77    20.89     20.02   19.14     18.27        17.39    16.52      11.45    10.57     9.70     8.82     7.95      7.07     6.20
      940.01   980.00      27.19    23.25    22.37     21.50   20.62     19.75        18.87    18.00      12.29    11.41    10.54     9.66     8.79      7.91     7.04
      980.01 1,020.00      28.67    24.73    23.85     22.98   22.10     21.23        20.35    19.48      13.13    12.25    11.38    10.50     9.63      8.75     7.88
    1,020.01 1,060.00      30.15    26.21    25.33     24.46   23.58     22.71        21.83    20.96      13.97    13.09    12.22    11.34    10.47      9.59     8.72


   Louisiana Administrative Code                        December 2011            94
                                                                      Title 61, Part I

                                                   Semimonthly Louisiana Income Tax Withholding Table
Exemptions:              0                                   1                                                                2
Dependents:
    SalaryRange:
   Min        Max        0        0        1         2        3        4         5        6        0        1        2        3        4        5        6
    1,060.01 1,100.00    31.63    27.69    26.81     25.94    25.06    24.19     23.31    22.44    15.44    14.56    13.69    12.81    11.94    11.06    10.19
    1,100.01 1,140.00    33.11    29.17    28.29     27.42    26.54    25.67     24.79    23.92    16.94    16.06    15.19    14.31    13.44    12.56    11.69
    1,140.01 1,180.00    34.59    30.65    29.77     28.90    28.02    27.15     26.27    25.40    18.44    17.56    16.69    15.81    14.94    14.06    13.19
    1,180.01 1,220.00    36.07    32.13    31.25     30.38    29.50    28.63     27.75    26.88    19.94    19.06    18.19    17.31    16.44    15.56    14.69
    1,220.01 1,260.00    37.55    33.61    32.73     31.86    30.98    30.11     29.23    28.36    21.44    20.56    19.69    18.81    17.94    17.06    16.19
    1,260.01 1,300.00    39.03    35.09    34.21     33.34    32.46    31.59     30.71    29.84    22.94    22.06    21.19    20.31    19.44    18.56    17.69
    1,300.01 1,340.00    40.51    36.57    35.69     34.82    33.94    33.07     32.19    31.32    24.44    23.56    22.69    21.81    20.94    20.06    19.19
    1,340.01 1,380.00    41.99    38.05    37.17     36.30    35.42    34.55     33.67    32.80    25.94    25.06    24.19    23.31    22.44    21.56    20.69
    1,380.01 1,420.00    43.47    39.53    38.65     37.78    36.90    36.03     35.15    34.28    27.44    26.56    25.69    24.81    23.94    23.06    22.19
    1,420.01 1,460.00    44.95    41.01    40.13     39.26    38.38    37.51     36.63    35.76    28.94    28.06    27.19    26.31    25.44    24.56    23.69
    1,460.01 1,500.00    46.43    42.49    41.61     40.74    39.86    38.99     38.11    37.24    30.44    29.56    28.69    27.81    26.94    26.06    25.19
    1,500.01 1,540.00    47.91    43.97    43.09     42.22    41.34    40.47     39.59    38.72    31.94    31.06    30.19    29.31    28.44    27.56    26.69
    1,540.01 1,580.00    49.39    45.45    44.57     43.70    42.82    41.95     41.07    40.20    33.44    32.56    31.69    30.81    29.94    29.06    28.19
    1,580.01 1,620.00    50.87    46.93    46.05     45.18    44.30    43.43     42.55    41.68    34.94    34.06    33.19    32.31    31.44    30.56    29.69
    1,620.01 1,660.00    52.35    48.41    47.53     46.66    45.78    44.91     44.03    43.16    36.44    35.56    34.69    33.81    32.94    32.06    31.19
    1,660.01 1,700.00    53.83    49.89    49.01     48.14    47.26    46.39     45.51    44.64    37.94    37.06    36.19    35.31    34.44    33.56    32.69
    1,700.01 1,740.00    55.31    51.37    50.49     49.62    48.74    47.87     46.99    46.12    39.44    38.56    37.69    36.81    35.94    35.06    34.19
    1,740.01 1,780.00    56.79    52.85    51.97     51.10    50.22    49.35     48.47    47.60    40.94    40.06    39.19    38.31    37.44    36.56    35.69
    1,780.01 1,820.00    58.27    54.33    53.45     52.58    51.70    50.83     49.95    49.08    42.44    41.56    40.69    39.81    38.94    38.06    37.19
    1,820.01 1,860.00    59.75    55.81    54.93     54.06    53.18    52.31     51.43    50.56    43.94    43.06    42.19    41.31    40.44    39.56    38.69
    1,860.01 1,900.00    61.23    57.29    56.41     55.54    54.66    53.79     52.91    52.04    45.44    44.56    43.69    42.81    41.94    41.06    40.19
    1,900.01 1,940.00    62.71    58.77    57.89     57.02    56.14    55.27     54.39    53.52    46.94    46.06    45.19    44.31    43.44    42.56    41.69
    1,940.01 1,980.00    64.19    60.25    59.37     58.50    57.62    56.75     55.87    55.00    48.44    47.56    46.69    45.81    44.94    44.06    43.19
    1,980.01 2,020.00    65.67    61.73    60.85     59.98    59.10    58.23     57.35    56.48    49.94    49.06    48.19    47.31    46.44    45.56    44.69
    2,020.01 2,060.00    67.15    63.21    62.33     61.46    60.58    59.71     58.83    57.96    51.44    50.56    49.69    48.81    47.94    47.06    46.19
    2,060.01 2,100.00    68.63    64.69    63.81     62.94    62.06    61.19     60.31    59.44    52.94    52.06    51.19    50.31    49.44    48.56    47.69
    2,100.01 2,140.00    70.60    66.66    65.79     64.91    64.04    63.16     62.29    61.41    54.44    53.56    52.69    51.81    50.94    50.06    49.19
    2,140.01 2,180.00    72.62    68.68    67.81     66.93    66.06    65.18     64.31    63.43    55.94    55.06    54.19    53.31    52.44    51.56    50.69
    2,180.01 2,220.00    74.64    70.70    69.83     68.95    68.08    67.20     66.33    65.45    57.44    56.56    55.69    54.81    53.94    53.06    52.19
    2,220.01 2,260.00    76.66    72.72    71.85     70.97    70.10    69.22     68.35    67.47    58.94    58.06    57.19    56.31    55.44    54.56    53.69
    2,260.01 2,300.00    78.68    74.74    73.87     72.99    72.12    71.24     70.37    69.49    60.44    59.56    58.69    57.81    56.94    56.06    55.19
    2,300.01 2,340.00    80.70    76.76    75.89     75.01    74.14    73.26     72.39    71.51    61.94    61.06    60.19    59.31    58.44    57.56    56.69
    2,340.01 2,380.00    82.72    78.78    77.91     77.03    76.16    75.28     74.41    73.53    63.44    62.56    61.69    60.81    59.94    59.06    58.19
    2,380.01 2,420.00    84.74    80.80    79.93     79.05    78.18    77.30     76.43    75.55    64.94    64.06    63.19    62.31    61.44    60.56    59.69
    2,420.01 2,460.00    86.76    82.82    81.95     81.07    80.20    79.32     78.45    77.57    66.44    65.56    64.69    63.81    62.94    62.06    61.19
    2,460.01 2,500.00    88.78    84.84    83.97     83.09    82.22    81.34     80.47    79.59    67.94    67.06    66.19    65.31    64.44    63.56    62.69
    2,500.01 2,540.00    90.80    86.86    85.99     85.11    84.24    83.36     82.49    81.61    69.44    68.56    67.69    66.81    65.94    65.06    64.19
    2,540.01 2,580.00    92.82    88.88    88.01     87.13    86.26    85.38     84.51    83.63    70.94    70.06    69.19    68.31    67.44    66.56    65.69
    2,580.01 2,620.00    94.84    90.90    90.03     89.15    88.28    87.40     86.53    85.65    72.44    71.56    70.69    69.81    68.94    68.06    67.19
    2,620.01 2,660.00    96.86    92.92    92.05     91.17    90.30    89.42     88.55    87.67    73.94    73.06    72.19    71.31    70.44    69.56    68.69
    2,660.01 2,700.00    98.88    94.94    94.07     93.19    92.32    91.44     90.57    89.69    75.44    74.56    73.69    72.81    71.94    71.06    70.19
    2,700.01 2,740.00   100.90    96.96    96.09     95.21    94.34    93.46     92.59    91.71    76.94    76.06    75.19    74.31    73.44    72.56    71.69
    2,740.01 2,780.00   102.92    98.98    98.11     97.23    96.36    95.48     94.61    93.73    78.44    77.56    76.69    75.81    74.94    74.06    73.19
    2,780.01 2,820.00   104.94   101.00   100.13     99.25    98.38    97.50     96.63    95.75    79.94    79.06    78.19    77.31    76.44    75.56    74.69
    2,820.01 2,860.00   106.96   103.02   102.15    101.27   100.40    99.52     98.65    97.77    81.44    80.56    79.69    78.81    77.94    77.06    76.19
    2,860.01 2,900.00   108.98   105.04   104.17    103.29   102.42   101.54    100.67    99.79    82.94    82.06    81.19    80.31    79.44    78.56    77.69
    2,900.01 2,940.00   111.00   107.06   106.19    105.31   104.44   103.56    102.69   101.81    84.44    83.56    82.69    81.81    80.94    80.06    79.19
    2,940.01 2,980.00   113.02   109.08   108.21    107.33   106.46   105.58    104.71   103.83    85.94    85.06    84.19    83.31    82.44    81.56    80.69
    2,980.01 3,020.00   115.04   111.10   110.23    109.35   108.48   107.60    106.73   105.85    87.44    86.56    85.69    84.81    83.94    83.06    82.19
    3,020.01 3,060.00   117.06   113.12   112.25    111.37   110.50   109.62    108.75   107.87    88.94    88.06    87.19    86.31    85.44    84.56    83.69
    3,060.01 3,100.00   119.08   115.14   114.27    113.39   112.52   111.64    110.77   109.89    90.44    89.56    88.69    87.81    86.94    86.06    85.19
    3,100.01 3,140.00   121.10   117.16   116.29    115.41   114.54   113.66    112.79   111.91    91.94    91.06    90.19    89.31    88.44    87.56    86.69
    3,140.01 3,180.00   123.12   119.18   118.31    117.43   116.56   115.68    114.81   113.93    93.44    92.56    91.69    90.81    89.94    89.06    88.19
    3,180.01 3,220.00   125.14   121.20   120.33    119.45   118.58   117.70    116.83   115.95    94.94    94.06    93.19    92.31    91.44    90.56    89.69
    3,220.01 3,260.00   127.16   123.22   122.35    121.47   120.60   119.72    118.85   117.97    96.44    95.56    94.69    93.81    92.94    92.06    91.19
    3,260.01 3,300.00   129.18   125.24   124.37    123.49   122.62   121.74    120.87   119.99    97.94    97.06    96.19    95.31    94.44    93.56    92.69
    3,300.01 3,340.00   131.20   127.26   126.39    125.51   124.64   123.76    122.89   122.01    99.44    98.56    97.69    96.81    95.94    95.06    94.19
    3,340.01 3,380.00   133.22   129.28   128.41    127.53   126.66   125.78    124.91   124.03   100.94   100.06    99.19    98.31    97.44    96.56    95.69
    3,380.01 3,420.00   135.24   131.30   130.43    129.55   128.68   127.80    126.93   126.05   102.44   101.56   100.69    99.81    98.94    98.06    97.19
    3,420.01 3,460.00   137.26   133.32   132.45    131.57   130.70   129.82    128.95   128.07   103.94   103.06   102.19   101.31   100.44    99.56    98.69
    3,460.01 3,500.00   139.28   135.34   134.47    133.59   132.72   131.84    130.97   130.09   105.44   104.56   103.69   102.81   101.94   101.06   100.19
    3,500.01 3,540.00   141.30   137.36   136.49    135.61   134.74   133.86    132.99   132.11   106.94   106.06   105.19   104.31   103.44   102.56   101.69
    3,540.01 3,580.00   143.32   139.38   138.51    137.63   136.76   135.88    135.01   134.13   108.44   107.56   106.69   105.81   104.94   104.06   103.19
    3,580.01 3,620.00   145.34   141.40   140.53    139.65   138.78   137.90    137.03   136.15   109.94   109.06   108.19   107.31   106.44   105.56   104.69


                                                                               95        Louisiana Administrative Code                   December 2011
                                                               REVENUE AND TAXATION

                                                     Semimonthly Louisiana Income Tax Withholding Table
Exemptions:                0                                   1                                                                   2
Dependents:
    SalaryRange:
   Min        Max          0        0       1          2         3      4         5           6          0        1       2          3         4     5        6
    3,620.01 3,660.00     147.36 143.42 142.55 141.67 140.80           139.92    139.05      138.17     111.44 110.56 109.69 108.81 107.94          107.06   106.19
    3,660.01 3,700.00     149.38 145.44 144.57 143.69 142.82           141.94    141.07      140.19     112.94 112.06 111.19 110.31 109.44          108.56   107.69
    3,700.01 3,740.00     151.40 147.46 146.59 145.71 144.84           143.96    143.09      142.21     114.44 113.56 112.69 111.81 110.94          110.06   109.19
    3,740.01 3,780.00     153.42 149.48 148.61 147.73 146.86           145.98    145.11      144.23     115.94 115.06 114.19 113.31 112.44          111.56   110.69
    3,780.01 3,820.00     155.44 151.50 150.63 149.75 148.88           148.00    147.13      146.25     117.44 116.56 115.69 114.81 113.94          113.06   112.19
    3,820.01 3,860.00     157.46 153.52 152.65 151.77 150.90           150.02    149.15      148.27     118.94 118.06 117.19 116.31 115.44          114.56   113.69
    3,860.01 3,900.00     159.48 155.54 154.67 153.79 152.92           152.04    151.17      150.29     120.44 119.56 118.69 117.81 116.94          116.06   115.19
    3,900.01 3,940.00     161.50 157.56 156.69 155.81 154.94           154.06    153.19      152.31     121.94 121.06 120.19 119.31 118.44          117.56   116.69
    3,940.01 3,980.00     163.52 159.58 158.71 157.83 156.96           156.08    155.21      154.33     123.44 122.56 121.69 120.81 119.94          119.06   118.19
    3,980.01 4,020.00     165.54 161.60 160.73 159.85 158.98           158.10    157.23      156.35     124.94 124.06 123.19 122.31 121.44          120.56   119.69
    4,020.01 4,060.00     167.56 163.62 162.75 161.87 161.00           160.12    159.25      158.37     126.44 125.56 124.69 123.81 122.94          122.06   121.19
    4,060.01 4,100.00     169.58 165.64 164.77 163.89 163.02           162.14    161.27      160.39     127.94 127.06 126.19 125.31 124.44          123.56   122.69
    4,100.01 4,140.00     171.60 167.66 166.79 165.91 165.04           164.16    163.29      162.41     129.44 128.56 127.69 126.81 125.94          125.06   124.19
    4,140.01 4,180.00     173.62 169.68 168.81 167.93 167.06           166.18    165.31      164.43     130.94 130.06 129.19 128.31 127.44          126.56   125.69
    4,180.01 4,220.00     175.64 171.70 170.83 169.95 169.08           168.20    167.33      166.45     132.89 132.01 131.14 130.26 129.39          128.51   127.64
                        (Add 5.05% for amounts in excess of $4,220)                                   (Add 5.10% for amounts in excess of $4,220)

                                                       Monthly Louisiana Income Tax Withholding Table
Exemptions:                0                                   1                                                                   2
Dependents:
    SalaryRange:
   Min       Max          0         0        1         2        3       4            5        6          0        1       2        3        4        5        6
          -    200.00     2.1%
     200.01    280.00      5.04      0.00     0.00      0.00    0.00     0.00         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     280.01    360.00      6.72      0.00     0.00      0.00    0.00     0.00         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     360.01    440.00      8.40      0.53     0.00      0.00    0.00     0.00         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     440.01    520.00     10.08      2.21     0.46      0.00    0.00     0.00         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     520.01    600.00     11.76      3.89     2.14      0.39    0.00     0.00         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     600.01    680.00     13.44      5.57     3.82      2.07    0.32     0.00         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     680.01    760.00     15.12      7.25     5.50      3.75    2.00     0.24         0.00     0.00      0.00     0.00     0.00     0.00    0.00      0.00     0.00
     760.01    840.00     16.80      8.93     7.18      5.43    3.68     1.93         0.18     0.00      1.05     0.00     0.00     0.00    0.00      0.00     0.00
     840.01    920.00     18.48     10.61     8.86      7.11    5.36     3.61         1.86     0.11      2.73     0.98     0.00     0.00    0.00      0.00     0.00
     920.01  1,000.00     20.16     12.29    10.54      8.79    7.04     5.29         3.54     1.79      4.41     2.66     0.91     0.00    0.00      0.00     0.00
   1,000.01  1,080.00     21.84     13.97    12.22     10.47    8.72     6.97         5.22     3.47      6.09     4.34     2.59     0.84    0.00      0.00     0.00
   1,080.01  1,160.00     24.77     16.90    15.15     13.40   11.65     9.90         8.15     6.40      7.77     6.02     4.27     2.52    0.77      0.00     0.00
   1,160.01  1,240.00     27.73     19.86    18.11     16.36   14.61    12.86        11.11     9.36      9.45     7.70     5.95     4.20    2.45      0.70     0.00
   1,240.01  1,320.00     30.69     22.82    21.07     19.32   17.57    15.82        14.07    12.32     11.13     9.38     7.63     5.88    4.13      2.38     0.63
   1,320.01  1,400.00     33.65     25.78    24.03     22.28   20.53    18.78        17.03    15.28     12.81    11.06     9.31     7.56    5.81      4.06     2.31
   1,400.01  1,480.00     36.61     28.74    26.99     25.24   23.49    21.74        19.99    18.24     14.49    12.74    10.99     9.24    7.49      5.74     3.99
   1,480.01  1,560.00     39.57     31.70    29.95     28.20   26.45    24.70        22.95    21.20     16.17    14.42    12.67    10.92    9.17      7.42     5.67
   1,560.01  1,640.00     42.53     34.66    32.91     31.16   29.41    27.66        25.91    24.16     17.85    16.10    14.35    12.60   10.85      9.10     7.35
   1,640.01  1,720.00     45.49     37.62    35.87     34.12   32.37    30.62        28.87    27.12     19.53    17.78    16.03    14.28   12.53     10.78     9.03
   1,720.01  1,800.00     48.45     40.58    38.83     37.08   35.33    33.58        31.83    30.08     21.21    19.46    17.71    15.96   14.21     12.46    10.71
   1,800.01  1,880.00     51.41     43.54    41.79     40.04   38.29    36.54        34.79    33.04     22.89    21.14    19.39    17.64   15.89     14.14    12.39
   1,880.01  1,960.00     54.37     46.50    44.75     43.00   41.25    39.50        37.75    36.00     24.57    22.82    21.07    19.32   17.57     15.82    14.07
   1,960.01  2,040.00     57.33     49.46    47.71     45.96   44.21    42.46        40.71    38.96     26.25    24.50    22.75    21.00   19.25     17.50    15.75
   2,040.01  2,120.00     60.29     52.42    50.67     48.92   47.17    45.42        43.67    41.92     27.93    26.18    24.43    22.68   20.93     19.18    17.43
   2,120.01  2,200.00     63.25     55.38    53.63     51.88   50.13    48.38        46.63    44.88     30.88    29.13    27.38    25.63   23.88     22.13    20.38
   2,200.01  2,280.00     66.21     58.34    56.59     54.84   53.09    51.34        49.59    47.84     33.88    32.13    30.38    28.63   26.88     25.13    23.38
   2,280.01  2,360.00     69.17     61.30    59.55     57.80   56.05    54.30        52.55    50.80     36.88    35.13    33.38    31.63   29.88     28.13    26.38
   2,360.01  2,440.00     72.13     64.26    62.51     60.76   59.01    57.26        55.51    53.76     39.88    38.13    36.38    34.63   32.88     31.13    29.38
   2,440.01  2,520.00     75.09     67.22    65.47     63.72   61.97    60.22        58.47    56.72     42.88    41.13    39.38    37.63   35.88     34.13    32.38
   2,520.01  2,600.00     78.05     70.18    68.43     66.68   64.93    63.18        61.43    59.68     45.88    44.13    42.38    40.63   38.88     37.13    35.38
   2,600.01  2,680.00     81.01     73.14    71.39     69.64   67.89    66.14        64.39    62.64     48.88    47.13    45.38    43.63   41.88     40.13    38.38
   2,680.01  2,760.00     83.97     76.10    74.35     72.60   70.85    69.10        67.35    65.60     51.88    50.13    48.38    46.63   44.88     43.13    41.38
   2,760.01  2,840.00     86.93     79.06    77.31     75.56   73.81    72.06        70.31    68.56     54.88    53.13    51.38    49.63   47.88     46.13    44.38
   2,840.01  2,920.00     89.89     82.02    80.27     78.52   76.77    75.02        73.27    71.52     57.88    56.13    54.38    52.63   50.88     49.13    47.38
   2,920.01  3,000.00     92.85     84.98    83.23     81.48   79.73    77.98        76.23    74.48     60.88    59.13    57.38    55.63   53.88     52.13    50.38
   3,000.01  3,080.00     95.81     87.94    86.19     84.44   82.69    80.94        79.19    77.44     63.88    62.13    60.38    58.63   56.88     55.13    53.38
   3,080.01  3,160.00     98.77     90.90    89.15     87.40   85.65    83.90        82.15    80.40     66.88    65.13    63.38    61.63   59.88     58.13    56.38
   3,160.01  3,240.00    101.73     93.86    92.11     90.36   88.61    86.86        85.11    83.36     69.88    68.13    66.38    64.63   62.88     61.13    59.38
   3,240.01  3,320.00    104.69     96.82    95.07     93.32   91.57    89.82        88.07    86.32     72.88    71.13    69.38    67.63   65.88     64.13    62.38
   3,320.01  3,400.00    107.65     99.78    98.03     96.28   94.53    92.78        91.03    89.28     75.88    74.13    72.38    70.63   68.88     67.13    65.38
   3,400.01  3,480.00    110.61    102.74   100.99     99.24   97.49    95.74        93.99    92.24     78.88    77.13    75.38    73.63   71.88     70.13    68.38


   Louisiana Administrative Code                        December 2011           96
                                                                      Title 61, Part I

                                                     Monthly Louisiana Income Tax Withholding Table
Exemptions:                0                                 1                                                                   2
Dependents:
    SalaryRange:
   Min       Max           0        0       1          2         3     4         5        6          0        1       2          3         4       5        6
   3,480.01  3,560.00     113.57 105.70 103.95 102.20 100.45           98.70     96.95    95.20      81.88   80.13    78.38     76.63     74.88    73.13    71.38
   3,560.01  3,640.00     116.53 108.66 106.91 105.16 103.41          101.66     99.91    98.16      84.88   83.13    81.38     79.63     77.88    76.13    74.38
   3,640.01  3,720.00     119.49 111.62 109.87 108.12 106.37          104.62    102.87   101.12      87.88   86.13    84.38     82.63     80.88    79.13    77.38
   3,720.01  3,800.00     122.45 114.58 112.83 111.08 109.33          107.58    105.83   104.08      90.88   89.13    87.38     85.63     83.88    82.13    80.38
   3,800.01  3,880.00     125.41 117.54 115.79 114.04 112.29          110.54    108.79   107.04      93.88   92.13    90.38     88.63     86.88    85.13    83.38
   3,880.01  3,960.00     128.37 120.50 118.75 117.00 115.25          113.50    111.75   110.00      96.88   95.13    93.38     91.63     89.88    88.13    86.38
   3,960.01  4,040.00     131.33 123.46 121.71 119.96 118.21          116.46    114.71   112.96      99.88   98.13    96.38     94.63     92.88    91.13    89.38
   4,040.01  4,120.00     134.29 126.42 124.67 122.92 121.17          119.42    117.67   115.92     102.88 101.13     99.38     97.63     95.88    94.13    92.38
   4,120.01  4,200.00     137.25 129.38 127.63 125.88 124.13          122.38    120.63   118.88     105.88 104.13 102.38 100.63           98.88    97.13    95.38
   4,200.01  4,280.00     141.20 133.33 131.58 129.83 128.08          126.33    124.58   122.83     108.88 107.13 105.38 103.63 101.88            100.13    98.38
   4,280.01  4,360.00     145.24 137.37 135.62 133.87 132.12          130.37    128.62   126.87     111.88 110.13 108.38 106.63 104.88            103.13   101.38
   4,360.01  4,440.00     149.28 141.41 139.66 137.91 136.16          134.41    132.66   130.91     114.88 113.13 111.38 109.63 107.88            106.13   104.38
   4,440.01  4,520.00     153.32 145.45 143.70 141.95 140.20          138.45    136.70   134.95     117.88 116.13 114.38 112.63 110.88            109.13   107.38
   4,520.01  4,600.00     157.36 149.49 147.74 145.99 144.24          142.49    140.74   138.99     120.88 119.13 117.38 115.63 113.88            112.13   110.38
   4,600.01  4,680.00     161.40 153.53 151.78 150.03 148.28          146.53    144.78   143.03     123.88 122.13 120.38 118.63 116.88            115.13   113.38
   4,680.01  4,760.00     165.44 157.57 155.82 154.07 152.32          150.57    148.82   147.07     126.88 125.13 123.38 121.63 119.88            118.13   116.38
   4,760.01  4,840.00     169.48 161.61 159.86 158.11 156.36          154.61    152.86   151.11     129.88 128.13 126.38 124.63 122.88            121.13   119.38
   4,840.01  4,920.00     173.52 165.65 163.90 162.15 160.40          158.65    156.90   155.15     132.88 131.13 129.38 127.63 125.88            124.13   122.38
   4,920.01  5,000.00     177.56 169.69 167.94 166.19 164.44          162.69    160.94   159.19     135.88 134.13 132.38 130.63 128.88            127.13   125.38
   5,000.01  5,080.00     181.60 173.73 171.98 170.23 168.48          166.73    164.98   163.23     138.88 137.13 135.38 133.63 131.88            130.13   128.38
   5,080.01  5,160.00     185.64 177.77 176.02 174.27 172.52          170.77    169.02   167.27     141.88 140.13 138.38 136.63 134.88            133.13   131.38
   5,160.01  5,240.00     189.68 181.81 180.06 178.31 176.56          174.81    173.06   171.31     144.88 143.13 141.38 139.63 137.88            136.13   134.38
   5,240.01  5,320.00     193.72 185.85 184.10 182.35 180.60          178.85    177.10   175.35     147.88 146.13 144.38 142.63 140.88            139.13   137.38
   5,320.01  5,400.00     197.76 189.89 188.14 186.39 184.64          182.89    181.14   179.39     150.88 149.13 147.38 145.63 143.88            142.13   140.38
   5,400.01  5,480.00     201.80 193.93 192.18 190.43 188.68          186.93    185.18   183.43     153.88 152.13 150.38 148.63 146.88            145.13   143.38
   5,480.01  5,560.00     205.84 197.97 196.22 194.47 192.72          190.97    189.22   187.47     156.88 155.13 153.38 151.63 149.88            148.13   146.38
   5,560.01  5,640.00     209.88 202.01 200.26 198.51 196.76          195.01    193.26   191.51     159.88 158.13 156.38 154.63 152.88            151.13   149.38
   5,640.01  5,720.00     213.92 206.05 204.30 202.55 200.80          199.05    197.30   195.55     162.88 161.13 159.38 157.63 155.88            154.13   152.38
   5,720.01  5,800.00     217.96 210.09 208.34 206.59 204.84          203.09    201.34   199.59     165.88 164.13 162.38 160.63 158.88            157.13   155.38
   5,800.01  5,880.00     222.00 214.13 212.38 210.63 208.88          207.13    205.38   203.63     168.88 167.13 165.38 163.63 161.88            160.13   158.38
   5,880.01  5,960.00     226.04 218.17 216.42 214.67 212.92          211.17    209.42   207.67     171.88 170.13 168.38 166.63 164.88            163.13   161.38
   5,960.01  6,040.00     230.08 222.21 220.46 218.71 216.96          215.21    213.46   211.71     174.88 173.13 171.38 169.63 167.88            166.13   164.38
   6,040.01  6,120.00     234.12 226.25 224.50 222.75 221.00          219.25    217.50   215.75     177.88 176.13 174.38 172.63 170.88            169.13   167.38
   6,120.01  6,200.00     238.16 230.29 228.54 226.79 225.04          223.29    221.54   219.79     180.88 179.13 177.38 175.63 173.88            172.13   170.38
   6,200.01  6,280.00     242.20 234.33 232.58 230.83 229.08          227.33    225.58   223.83     183.88 182.13 180.38 178.63 176.88            175.13   173.38
   6,280.01  6,360.00     246.24 238.37 236.62 234.87 233.12          231.37    229.62   227.87     186.88 185.13 183.38 181.63 179.88            178.13   176.38
   6,360.01  6,440.00     250.28 242.41 240.66 238.91 237.16          235.41    233.66   231.91     189.88 188.13 186.38 184.63 182.88            181.13   179.38
   6,440.01  6,520.00     254.32 246.45 244.70 242.95 241.20          239.45    237.70   235.95     192.88 191.13 189.38 187.63 185.88            184.13   182.38
   6,520.01  6,600.00     258.36 250.49 248.74 246.99 245.24          243.49    241.74   239.99     195.88 194.13 192.38 190.63 188.88            187.13   185.38
   6,600.01  6,680.00     262.40 254.53 252.78 251.03 249.28          247.53    245.78   244.03     198.88 197.13 195.38 193.63 191.88            190.13   188.38
   6,680.01  6,760.00     266.44 258.57 256.82 255.07 253.32          251.57    249.82   248.07     201.88 200.13 198.38 196.63 194.88            193.13   191.38
   6,760.01  6,840.00     270.48 262.61 260.86 259.11 257.36          255.61    253.86   252.11     204.88 203.13 201.38 199.63 197.88            196.13   194.38
   6,840.01  6,920.00     274.52 266.65 264.90 263.15 261.40          259.65    257.90   256.15     207.88 206.13 204.38 202.63 200.88            199.13   197.38
   6,920.01  7,000.00     278.56 270.69 268.94 267.19 265.44          263.69    261.94   260.19     210.88 209.13 207.38 205.63 203.88            202.13   200.38
   7,000.01  7,080.00     282.60 274.73 272.98 271.23 269.48          267.73    265.98   264.23     213.88 212.13 210.38 208.63 206.88            205.13   203.38
   7,080.01  7,160.00     286.64 278.77 277.02 275.27 273.52          271.77    270.02   268.27     216.88 215.13 213.38 211.63 209.88            208.13   206.38
   7,160.01  7,240.00     290.68 282.81 281.06 279.31 277.56          275.81    274.06   272.31     219.88 218.13 216.38 214.63 212.88            211.13   209.38
   7,240.01  7,320.00     294.72 286.85 285.10 283.35 281.60          279.85    278.10   276.35     222.88 221.13 219.38 217.63 215.88            214.13   212.38
   7,320.01  7,400.00     298.76 290.89 289.14 287.39 285.64          283.89    282.14   280.39     225.88 224.13 222.38 220.63 218.88            217.13   215.38
   7,400.01  7,480.00     302.80 294.93 293.18 291.43 289.68          287.93    286.18   284.43     228.88 227.13 225.38 223.63 221.88            220.13   218.38
   7,480.01  7,560.00     306.84 298.97 297.22 295.47 293.72          291.97    290.22   288.47     231.88 230.13 228.38 226.63 224.88            223.13   221.38
   7,560.01  7,640.00     310.88 303.01 301.26 299.51 297.76          296.01    294.26   292.51     234.88 233.13 231.38 229.63 227.88            226.13   224.38
   7,640.01  7,720.00     314.92 307.05 305.30 303.55 301.80          300.05    298.30   296.55     237.88 236.13 234.38 232.63 230.88            229.13   227.38
   7,720.01  7,800.00     318.96 311.09 309.34 307.59 305.84          304.09    302.34   300.59     240.88 239.13 237.38 235.63 233.88            232.13   230.38
   7,800.01  7,880.00     323.00 315.13 313.38 311.63 309.88          308.13    306.38   304.63     243.88 242.13 240.38 238.63 236.88            235.13   233.38
   7,880.01  7,960.00     327.04 319.17 317.42 315.67 313.92          312.17    310.42   308.67     246.88 245.13 243.38 241.63 239.88            238.13   236.38
   7,960.01  8,040.00     331.08 323.21 321.46 319.71 317.96          316.21    314.46   312.71     249.88 248.13 246.38 244.63 242.88            241.13   239.38
   8,040.01  8,120.00     335.12 327.25 325.50 323.75 322.00          320.25    318.50   316.75     252.88 251.13 249.38 247.63 245.88            244.13   242.38
   8,120.01  8,200.00     339.16 331.29 329.54 327.79 326.04          324.29    322.54   320.79     255.88 254.13 252.38 250.63 248.88            247.13   245.38
   8,200.01  8,280.00     343.20 335.33 333.58 331.83 330.08          328.33    326.58   324.83     258.88 257.13 255.38 253.63 251.88            250.13   248.38
   8,280.01  8,360.00     347.24 339.37 337.62 335.87 334.12          332.37    330.62   328.87     261.88 260.13 258.38 256.63 254.88            253.13   251.38
   8,360.01  8,440.00     351.28 343.41 341.66 339.91 338.16          336.41    334.66   332.91     265.78 264.03 262.28 260.53 258.78            257.03   255.28
                        (Add 5.05% for amounts in excess of $8,360)                               (Add 5.10% for amounts in excess of $8,360)




                                                                               97        Louisiana Administrative Code                     December 2011
                                                            REVENUE AND TAXATION

                                                    Annual Louisiana Income Tax Withholding Table
   Exemptions:         0                                    1                                                                2
   Dependents:
  SalaryRange:
 Min       Max         0          0        1        2        3        4         5        6        0        1        2        3        4        5        6
     0.00 2,500.00     2.1%        0.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 2,501.00 2,900.00     56.70       0.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 2,901.00 3,300.00     65.10       0.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 3,301.00 3,700.00     73.50       0.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 3,701.00 4,100.00     81.90       0.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 4,101.00 4,500.00     90.30       0.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 4,501.00 4,900.00     98.70       4.20     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 4,901.00 5,300.00    107.10      12.60     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 5,301.00 5,700.00    115.50      21.00     0.00     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 5,701.00 6,100.00    123.90      29.40     8.40     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 6,101.00 6,500.00    132.30      37.80    16.80     0.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 6,501.00 6,900.00    140.70      46.20    25.20     4.20     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 6,901.00 7,300.00    149.10      54.60    33.60    12.60     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 7,301.00 7,700.00    157.50      63.00    42.00    21.00     0.00     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 7,701.00 8,100.00    165.90      71.40    50.40    29.40     8.40     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 8,101.00 8,500.00    174.30      79.80    58.80    37.80    16.80     0.00      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 8,501.00 8,900.00    182.70      88.20    67.20    46.20    25.20     4.20      0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00     0.00
 8,901.00 9,300.00    191.10      96.60    75.60    54.60    33.60    12.60      0.00     0.00     2.10     0.00     0.00     0.00     0.00     0.00     0.00
 9,301.00 9,700.00    199.50     105.00    84.00    63.00    42.00    21.00      0.00     0.00    10.50     0.00     0.00     0.00     0.00     0.00     0.00
 9,701.00 10,100.00   207.90     113.40    92.40    71.40    50.40    29.40      8.40     0.00    18.90     0.00     0.00     0.00     0.00     0.00     0.00
10,101.00 10,500.00   216.30     121.80   100.80    79.80    58.80    37.80     16.80     0.00    27.30     6.30     0.00     0.00     0.00     0.00     0.00
10,501.00 10,900.00   224.70     130.20   109.20    88.20    67.20    46.20     25.20     4.20    35.70    14.70     0.00     0.00     0.00     0.00     0.00
10,901.00 11,300.00   233.10     138.60   117.60    96.60    75.60    54.60     33.60    12.60    44.10    23.10     2.10     0.00     0.00     0.00     0.00
11,301.00 11,700.00   241.50     147.00   126.00   105.00    84.00    63.00     42.00    21.00    52.50    31.50    10.50     0.00     0.00     0.00     0.00
11,701.00 12,100.00   249.90     155.40   134.40   113.40    92.40    71.40     50.40    29.40    60.90    39.90    18.90     0.00     0.00     0.00     0.00
12,101.00 12,500.00   258.30     163.80   142.80   121.80   100.80    79.80     58.80    37.80    69.30    48.30    27.30     6.30     0.00     0.00     0.00
12,501.00 12,900.00   269.90     175.40   154.40   133.40   112.40    91.40     70.40    49.40    77.70    56.70    35.70    14.70     0.00     0.00     0.00
12,901.00 13,300.00   284.70     190.20   169.20   148.20   127.20   106.20     85.20    64.20    86.10    65.10    44.10    23.10     2.10     0.00     0.00
13,301.00 13,700.00   299.50     205.00   184.00   163.00   142.00   121.00    100.00    79.00    94.50    73.50    52.50    31.50    10.50     0.00     0.00
13,701.00 14,100.00   314.30     219.80   198.80   177.80   156.80   135.80    114.80    93.80   102.90    81.90    60.90    39.90    18.90     0.00     0.00
14,101.00 14,500.00   329.10     234.60   213.60   192.60   171.60   150.60    129.60   108.60   111.30    90.30    69.30    48.30    27.30     6.30     0.00
14,501.00 14,900.00   343.90     249.40   228.40   207.40   186.40   165.40    144.40   123.40   119.70    98.70    77.70    56.70    35.70    14.70     0.00
14,901.00 15,300.00   358.70     264.20   243.20   222.20   201.20   180.20    159.20   138.20   128.10   107.10    86.10    65.10    44.10    23.10     2.10
15,301.00 15,700.00   373.50     279.00   258.00   237.00   216.00   195.00    174.00   153.00   136.50   115.50    94.50    73.50    52.50    31.50    10.50
15,701.00 16,100.00   388.30     293.80   272.80   251.80   230.80   209.80    188.80   167.80   144.90   123.90   102.90    81.90    60.90    39.90    18.90
16,101.00 16,500.00   403.10     308.60   287.60   266.60   245.60   224.60    203.60   182.60   153.30   132.30   111.30    90.30    69.30    48.30    27.30
16,501.00 16,900.00   417.90     323.40   302.40   281.40   260.40   239.40    218.40   197.40   161.70   140.70   119.70    98.70    77.70    56.70    35.70
16,901.00 17,300.00   432.70     338.20   317.20   296.20   275.20   254.20    233.20   212.20   170.10   149.10   128.10   107.10    86.10    65.10    44.10
17,301.00 17,700.00   447.50     353.00   332.00   311.00   290.00   269.00    248.00   227.00   178.50   157.50   136.50   115.50    94.50    73.50    52.50
17,701.00 18,100.00   462.30     367.80   346.80   325.80   304.80   283.80    262.80   241.80   186.90   165.90   144.90   123.90   102.90    81.90    60.90
18,101.00 18,500.00   477.10     382.60   361.60   340.60   319.60   298.60    277.60   256.60   195.30   174.30   153.30   132.30   111.30    90.30    69.30
18,501.00 18,900.00   491.90     397.40   376.40   355.40   334.40   313.40    292.40   271.40   203.70   182.70   161.70   140.70   119.70    98.70    77.70
18,901.00 19,300.00   506.70     412.20   391.20   370.20   349.20   328.20    307.20   286.20   212.10   191.10   170.10   149.10   128.10   107.10    86.10
19,301.00 19,700.00   521.50     427.00   406.00   385.00   364.00   343.00    322.00   301.00   220.50   199.50   178.50   157.50   136.50   115.50    94.50
19,701.00 20,100.00   536.30     441.80   420.80   399.80   378.80   357.80    336.80   315.80   228.90   207.90   186.90   165.90   144.90   123.90   102.90
20,101.00 20,500.00   551.10     456.60   435.60   414.60   393.60   372.60    351.60   330.60   237.30   216.30   195.30   174.30   153.30   132.30   111.30
20,501.00 20,900.00   565.90     471.40   450.40   429.40   408.40   387.40    366.40   345.40   245.70   224.70   203.70   182.70   161.70   140.70   119.70
20,901.00 21,300.00   580.70     486.20   465.20   444.20   423.20   402.20    381.20   360.20   254.10   233.10   212.10   191.10   170.10   149.10   128.10
21,301.00 21,700.00   595.50     501.00   480.00   459.00   438.00   417.00    396.00   375.00   262.50   241.50   220.50   199.50   178.50   157.50   136.50
21,701.00 22,100.00   610.30     515.80   494.80   473.80   452.80   431.80    410.80   389.80   270.90   249.90   228.90   207.90   186.90   165.90   144.90
22,101.00 22,500.00   625.10     530.60   509.60   488.60   467.60   446.60    425.60   404.60   279.30   258.30   237.30   216.30   195.30   174.30   153.30
22,501.00 22,900.00   639.90     545.40   524.40   503.40   482.40   461.40    440.40   419.40   287.70   266.70   245.70   224.70   203.70   182.70   161.70
22,901.00 23,300.00   654.70     560.20   539.20   518.20   497.20   476.20    455.20   434.20   296.10   275.10   254.10   233.10   212.10   191.10   170.10
23,301.00 23,700.00   669.50     575.00   554.00   533.00   512.00   491.00    470.00   449.00   304.50   283.50   262.50   241.50   220.50   199.50   178.50
23,701.00 24,100.00   684.30     589.80   568.80   547.80   526.80   505.80    484.80   463.80   312.90   291.90   270.90   249.90   228.90   207.90   186.90
24,101.00 24,500.00   699.10     604.60   583.60   562.60   541.60   520.60    499.60   478.60   321.30   300.30   279.30   258.30   237.30   216.30   195.30
24,501.00 24,900.00   713.90     619.40   598.40   577.40   556.40   535.40    514.40   493.40   329.70   308.70   287.70   266.70   245.70   224.70   203.70
24,901.00 25,300.00   728.70     634.20   613.20   592.20   571.20   550.20    529.20   508.20   339.75   318.75   297.75   276.75   255.75   234.75   213.75
25,301.00 25,700.00   743.50     649.00   628.00   607.00   586.00   565.00    544.00   523.00   354.75   333.75   312.75   291.75   270.75   249.75   228.75
25,701.00 26,100.00   758.30     663.80   642.80   621.80   600.80   579.80    558.80   537.80   369.75   348.75   327.75   306.75   285.75   264.75   243.75
26,101.00 26,500.00   773.10     678.60   657.60   636.60   615.60   594.60    573.60   552.60   384.75   363.75   342.75   321.75   300.75   279.75   258.75
26,501.00 26,900.00   787.90     693.40   672.40   651.40   630.40   609.40    588.40   567.40   399.75   378.75   357.75   336.75   315.75   294.75   273.75
26,901.00 27,300.00   802.70     708.20   687.20   666.20   645.20   624.20    603.20   582.20   414.75   393.75   372.75   351.75   330.75   309.75   288.75
27,301.00 27,700.00   817.50     723.00   702.00   681.00   660.00   639.00    618.00   597.00   429.75   408.75   387.75   366.75   345.75   324.75   303.75


 Louisiana Administrative Code                       December 2011            98
                                                                              Title 61, Part I

                                                          Annual Louisiana Income Tax Withholding Table
   Exemptions:          0                                         1                                                                               2
   Dependents:
  SalaryRange:
 Min       Max           0          0          1          2          3          4          5          6          0          1          2          3          4          5          6
27,701.00 28,100.00     832.30     737.80     716.80     695.80     674.80     653.80     632.80     611.80     444.75     423.75     402.75     381.75     360.75     339.75     318.75
28,101.00 28,500.00     847.10     752.60     731.60     710.60     689.60     668.60     647.60     626.60     459.75     438.75     417.75     396.75     375.75     354.75     333.75
28,501.00 28,900.00     861.90     767.40     746.40     725.40     704.40     683.40     662.40     641.40     474.75     453.75     432.75     411.75     390.75     369.75     348.75
28,901.00 29,300.00     876.70     782.20     761.20     740.20     719.20     698.20     677.20     656.20     489.75     468.75     447.75     426.75     405.75     384.75     363.75
29,301.00 29,700.00     891.50     797.00     776.00     755.00     734.00     713.00     692.00     671.00     504.75     483.75     462.75     441.75     420.75     399.75     378.75
29,701.00 30,100.00     906.30     811.80     790.80     769.80     748.80     727.80     706.80     685.80     519.75     498.75     477.75     456.75     435.75     414.75     393.75
30,101.00 30,500.00     921.10     826.60     805.60     784.60     763.60     742.60     721.60     700.60     534.75     513.75     492.75     471.75     450.75     429.75     408.75
30,501.00 30,900.00     935.90     841.40     820.40     799.40     778.40     757.40     736.40     715.40     549.75     528.75     507.75     486.75     465.75     444.75     423.75
30,901.00 31,300.00     950.70     856.20     835.20     814.20     793.20     772.20     751.20     730.20     564.75     543.75     522.75     501.75     480.75     459.75     438.75
31,301.00 31,700.00     965.50     871.00     850.00     829.00     808.00     787.00     766.00     745.00     579.75     558.75     537.75     516.75     495.75     474.75     453.75
31,701.00 32,100.00     980.30     885.80     864.80     843.80     822.80     801.80     780.80     759.80     594.75     573.75     552.75     531.75     510.75     489.75     468.75
32,101.00 32,500.00     995.10     900.60     879.60     858.60     837.60     816.60     795.60     774.60     609.75     588.75     567.75     546.75     525.75     504.75     483.75
32,501.00 32,900.00   1,009.90     915.40     894.40     873.40     852.40     831.40     810.40     789.40     624.75     603.75     582.75     561.75     540.75     519.75     498.75
32,901.00 33,300.00   1,024.70     930.20     909.20     888.20     867.20     846.20     825.20     804.20     639.75     618.75     597.75     576.75     555.75     534.75     513.75
33,301.00 33,700.00   1,039.50     945.00     924.00     903.00     882.00     861.00     840.00     819.00     654.75     633.75     612.75     591.75     570.75     549.75     528.75
33,701.00 34,100.00   1,054.30     959.80     938.80     917.80     896.80     875.80     854.80     833.80     669.75     648.75     627.75     606.75     585.75     564.75     543.75
34,101.00 34,500.00   1,069.10     974.60     953.60     932.60     911.60     890.60     869.60     848.60     684.75     663.75     642.75     621.75     600.75     579.75     558.75
34,501.00 34,900.00   1,083.90     989.40     968.40     947.40     926.40     905.40     884.40     863.40     699.75     678.75     657.75     636.75     615.75     594.75     573.75
34,901.00 35,300.00   1,098.70   1,004.20     983.20     962.20     941.20     920.20     899.20     878.20     714.75     693.75     672.75     651.75     630.75     609.75     588.75
35,301.00 35,700.00   1,113.50   1,019.00     998.00     977.00     956.00     935.00     914.00     893.00     729.75     708.75     687.75     666.75     645.75     624.75     603.75
35,701.00 36,100.00   1,128.30   1,033.80   1,012.80     991.80     970.80     949.80     928.80     907.80     744.75     723.75     702.75     681.75     660.75     639.75     618.75
36,101.00 36,500.00   1,143.10   1,048.60   1,027.60   1,006.60     985.60     964.60     943.60     922.60     759.75     738.75     717.75     696.75     675.75     654.75     633.75
36,501.00 36,900.00   1,157.90   1,063.40   1,042.40   1,021.40   1,000.40     979.40     958.40     937.40     774.75     753.75     732.75     711.75     690.75     669.75     648.75
36,901.00 37,300.00   1,172.70   1,078.20   1,057.20   1,036.20   1,015.20     994.20     973.20     952.20     789.75     768.75     747.75     726.75     705.75     684.75     663.75
37,301.00 37,700.00   1,187.50   1,093.00   1,072.00   1,051.00   1,030.00   1,009.00     988.00     967.00     804.75     783.75     762.75     741.75     720.75     699.75     678.75
37,701.00 38,100.00   1,202.30   1,107.80   1,086.80   1,065.80   1,044.80   1,023.80   1,002.80     981.80     819.75     798.75     777.75     756.75     735.75     714.75     693.75
38,101.00 38,500.00   1,217.10   1,122.60   1,101.60   1,080.60   1,059.60   1,038.60   1,017.60     996.60     834.75     813.75     792.75     771.75     750.75     729.75     708.75
38,501.00 38,900.00   1,231.90   1,137.40   1,116.40   1,095.40   1,074.40   1,053.40   1,032.40   1,011.40     849.75     828.75     807.75     786.75     765.75     744.75     723.75
38,901.00 39,300.00   1,246.70   1,152.20   1,131.20   1,110.20   1,089.20   1,068.20   1,047.20   1,026.20     864.75     843.75     822.75     801.75     780.75     759.75     738.75
39,301.00 39,700.00   1,261.50   1,167.00   1,146.00   1,125.00   1,104.00   1,083.00   1,062.00   1,041.00     879.75     858.75     837.75     816.75     795.75     774.75     753.75
39,701.00 40,100.00   1,276.30   1,181.80   1,160.80   1,139.80   1,118.80   1,097.80   1,076.80   1,055.80     894.75     873.75     852.75     831.75     810.75     789.75     768.75
40,101.00 40,500.00   1,291.10   1,196.60   1,175.60   1,154.60   1,133.60   1,112.60   1,091.60   1,070.60     909.75     888.75     867.75     846.75     825.75     804.75     783.75
40,501.00 40,900.00   1,305.90   1,211.40   1,190.40   1,169.40   1,148.40   1,127.40   1,106.40   1,085.40     924.75     903.75     882.75     861.75     840.75     819.75     798.75
40,901.00 41,300.00   1,320.70   1,226.20   1,205.20   1,184.20   1,163.20   1,142.20   1,121.20   1,100.20     939.75     918.75     897.75     876.75     855.75     834.75     813.75
41,301.00 41,700.00   1,335.50   1,241.00   1,220.00   1,199.00   1,178.00   1,157.00   1,136.00   1,115.00     954.75     933.75     912.75     891.75     870.75     849.75     828.75
41,701.00 42,100.00   1,350.30   1,255.80   1,234.80   1,213.80   1,192.80   1,171.80   1,150.80   1,129.80     969.75     948.75     927.75     906.75     885.75     864.75     843.75
42,101.00 42,500.00   1,365.10   1,270.60   1,249.60   1,228.60   1,207.60   1,186.60   1,165.60   1,144.60     984.75     963.75     942.75     921.75     900.75     879.75     858.75
42,501.00 42,900.00   1,379.90   1,285.40   1,264.40   1,243.40   1,222.40   1,201.40   1,180.40   1,159.40     999.75     978.75     957.75     936.75     915.75     894.75     873.75
42,901.00 43,300.00   1,394.70   1,300.20   1,279.20   1,258.20   1,237.20   1,216.20   1,195.20   1,174.20   1,014.75     993.75     972.75     951.75     930.75     909.75     888.75
43,301.00 43,700.00   1,409.50   1,315.00   1,294.00   1,273.00   1,252.00   1,231.00   1,210.00   1,189.00   1,029.75   1,008.75     987.75     966.75     945.75     924.75     903.75
43,701.00 44,100.00   1,424.30   1,329.80   1,308.80   1,287.80   1,266.80   1,245.80   1,224.80   1,203.80   1,044.75   1,023.75   1,002.75     981.75     960.75     939.75     918.75
44,101.00 44,500.00   1,439.10   1,344.60   1,323.60   1,302.60   1,281.60   1,260.60   1,239.60   1,218.60   1,059.75   1,038.75   1,017.75     996.75     975.75     954.75     933.75
44,501.00 44,900.00   1,453.90   1,359.40   1,338.40   1,317.40   1,296.40   1,275.40   1,254.40   1,233.40   1,074.75   1,053.75   1,032.75   1,011.75     990.75     969.75     948.75
44,901.00 45,300.00   1,468.70   1,374.20   1,353.20   1,332.20   1,311.20   1,290.20   1,269.20   1,248.20   1,089.75   1,068.75   1,047.75   1,026.75   1,005.75     984.75     963.75
45,301.00 45,700.00   1,483.50   1,389.00   1,368.00   1,347.00   1,326.00   1,305.00   1,284.00   1,263.00   1,104.75   1,083.75   1,062.75   1,041.75   1,020.75     999.75     978.75
45,701.00 46,100.00   1,498.30   1,403.80   1,382.80   1,361.80   1,340.80   1,319.80   1,298.80   1,277.80   1,119.75   1,098.75   1,077.75   1,056.75   1,035.75   1,014.75     993.75
46,101.00 46,500.00   1,513.10   1,418.60   1,397.60   1,376.60   1,355.60   1,334.60   1,313.60   1,292.60   1,134.75   1,113.75   1,092.75   1,071.75   1,050.75   1,029.75   1,008.75
46,501.00 46,900.00   1,527.90   1,433.40   1,412.40   1,391.40   1,370.40   1,349.40   1,328.40   1,307.40   1,149.75   1,128.75   1,107.75   1,086.75   1,065.75   1,044.75   1,023.75
46,901.00 47,300.00   1,542.70   1,448.20   1,427.20   1,406.20   1,385.20   1,364.20   1,343.20   1,322.20   1,164.75   1,143.75   1,122.75   1,101.75   1,080.75   1,059.75   1,038.75
47,301.00 47,700.00   1,557.50   1,463.00   1,442.00   1,421.00   1,400.00   1,379.00   1,358.00   1,337.00   1,179.75   1,158.75   1,137.75   1,116.75   1,095.75   1,074.75   1,053.75
47,701.00 48,100.00   1,572.30   1,477.80   1,456.80   1,435.80   1,414.80   1,393.80   1,372.80   1,351.80   1,194.75   1,173.75   1,152.75   1,131.75   1,110.75   1,089.75   1,068.75
48,101.00 48,500.00   1,587.10   1,492.60   1,471.60   1,450.60   1,429.60   1,408.60   1,387.60   1,366.60   1,209.75   1,188.75   1,167.75   1,146.75   1,125.75   1,104.75   1,083.75
48,501.00 48,900.00   1,601.90   1,507.40   1,486.40   1,465.40   1,444.40   1,423.40   1,402.40   1,381.40   1,224.75   1,203.75   1,182.75   1,161.75   1,140.75   1,119.75   1,098.75
48,901.00 49,300.00   1,616.70   1,522.20   1,501.20   1,480.20   1,459.20   1,438.20   1,417.20   1,396.20   1,239.75   1,218.75   1,197.75   1,176.75   1,155.75   1,134.75   1,113.75
49,301.00 49,700.00   1,631.50   1,537.00   1,516.00   1,495.00   1,474.00   1,453.00   1,432.00   1,411.00   1,254.75   1,233.75   1,212.75   1,191.75   1,170.75   1,149.75   1,128.75
49,701.00 50,100.00   1,646.30   1,551.80   1,530.80   1,509.80   1,488.80   1,467.80   1,446.80   1,425.80   1,269.75   1,248.75   1,227.75   1,206.75   1,185.75   1,164.75   1,143.75
50,101.00 50,500.00   1,665.15   1,570.65   1,549.65   1,528.65   1,507.65   1,486.65   1,465.65   1,444.65   1,284.75   1,263.75   1,242.75   1,221.75   1,200.75   1,179.75   1,158.75
50,501.00 50,900.00   1,685.35   1,590.85   1,569.85   1,548.85   1,527.85   1,506.85   1,485.85   1,464.85   1,299.75   1,278.75   1,257.75   1,236.75   1,215.75   1,194.75   1,173.75
50,901.00 51,300.00   1,705.55   1,611.05   1,590.05   1,569.05   1,548.05   1,527.05   1,506.05   1,485.05   1,314.75   1,293.75   1,272.75   1,251.75   1,230.75   1,209.75   1,188.75
51,301.00 51,700.00   1,725.75   1,631.25   1,610.25   1,589.25   1,568.25   1,547.25   1,526.25   1,505.25   1,329.75   1,308.75   1,287.75   1,266.75   1,245.75   1,224.75   1,203.75
51,701.00 52,100.00   1,745.95   1,651.45   1,630.45   1,609.45   1,588.45   1,567.45   1,546.45   1,525.45   1,344.75   1,323.75   1,302.75   1,281.75   1,260.75   1,239.75   1,218.75
52,101.00 52,500.00   1,766.15   1,671.65   1,650.65   1,629.65   1,608.65   1,587.65   1,566.65   1,545.65   1,359.75   1,338.75   1,317.75   1,296.75   1,275.75   1,254.75   1,233.75
52,501.00 52,900.00   1,786.35   1,691.85   1,670.85   1,649.85   1,628.85   1,607.85   1,586.85   1,565.85   1,374.75   1,353.75   1,332.75   1,311.75   1,290.75   1,269.75   1,248.75
52,901.00 53,300.00   1,806.55   1,712.05   1,691.05   1,670.05   1,649.05   1,628.05   1,607.05   1,586.05   1,389.75   1,368.75   1,347.75   1,326.75   1,305.75   1,284.75   1,263.75


                                                                                        99           Louisiana Administrative Code                            December 2011
                                                                   REVENUE AND TAXATION

                                                          Annual Louisiana Income Tax Withholding Table
   Exemptions:          0                                         1                                                                               2
   Dependents:
  SalaryRange:
 Min       Max           0          0          1          2          3          4          5          6          0          1          2          3          4          5          6
53,301.00 53,700.00   1,826.75   1,732.25   1,711.25   1,690.25   1,669.25   1,648.25   1,627.25   1,606.25   1,404.75   1,383.75   1,362.75   1,341.75   1,320.75   1,299.75   1,278.75
53,701.00 54,100.00   1,846.95   1,752.45   1,731.45   1,710.45   1,689.45   1,668.45   1,647.45   1,626.45   1,419.75   1,398.75   1,377.75   1,356.75   1,335.75   1,314.75   1,293.75
54,101.00 54,500.00   1,867.15   1,772.65   1,751.65   1,730.65   1,709.65   1,688.65   1,667.65   1,646.65   1,434.75   1,413.75   1,392.75   1,371.75   1,350.75   1,329.75   1,308.75
54,501.00 54,900.00   1,887.35   1,792.85   1,771.85   1,750.85   1,729.85   1,708.85   1,687.85   1,666.85   1,449.75   1,428.75   1,407.75   1,386.75   1,365.75   1,344.75   1,323.75
54,901.00 55,300.00   1,907.55   1,813.05   1,792.05   1,771.05   1,750.05   1,729.05   1,708.05   1,687.05   1,464.75   1,443.75   1,422.75   1,401.75   1,380.75   1,359.75   1,338.75
55,301.00 55,700.00   1,927.75   1,833.25   1,812.25   1,791.25   1,770.25   1,749.25   1,728.25   1,707.25   1,479.75   1,458.75   1,437.75   1,416.75   1,395.75   1,374.75   1,353.75
55,701.00 56,100.00   1,947.95   1,853.45   1,832.45   1,811.45   1,790.45   1,769.45   1,748.45   1,727.45   1,494.75   1,473.75   1,452.75   1,431.75   1,410.75   1,389.75   1,368.75
56,101.00 56,500.00   1,968.15   1,873.65   1,852.65   1,831.65   1,810.65   1,789.65   1,768.65   1,747.65   1,509.75   1,488.75   1,467.75   1,446.75   1,425.75   1,404.75   1,383.75
56,501.00 56,900.00   1,988.35   1,893.85   1,872.85   1,851.85   1,830.85   1,809.85   1,788.85   1,767.85   1,524.75   1,503.75   1,482.75   1,461.75   1,440.75   1,419.75   1,398.75
56,901.00 57,300.00   2,008.55   1,914.05   1,893.05   1,872.05   1,851.05   1,830.05   1,809.05   1,788.05   1,539.75   1,518.75   1,497.75   1,476.75   1,455.75   1,434.75   1,413.75
57,301.00 57,700.00   2,028.75   1,934.25   1,913.25   1,892.25   1,871.25   1,850.25   1,829.25   1,808.25   1,554.75   1,533.75   1,512.75   1,491.75   1,470.75   1,449.75   1,428.75
57,701.00 58,100.00   2,048.95   1,954.45   1,933.45   1,912.45   1,891.45   1,870.45   1,849.45   1,828.45   1,569.75   1,548.75   1,527.75   1,506.75   1,485.75   1,464.75   1,443.75
58,101.00 58,500.00   2,069.15   1,974.65   1,953.65   1,932.65   1,911.65   1,890.65   1,869.65   1,848.65   1,584.75   1,563.75   1,542.75   1,521.75   1,500.75   1,479.75   1,458.75
58,501.00 58,900.00   2,089.35   1,994.85   1,973.85   1,952.85   1,931.85   1,910.85   1,889.85   1,868.85   1,599.75   1,578.75   1,557.75   1,536.75   1,515.75   1,494.75   1,473.75
58,901.00 59,300.00   2,109.55   2,015.05   1,994.05   1,973.05   1,952.05   1,931.05   1,910.05   1,889.05   1,614.75   1,593.75   1,572.75   1,551.75   1,530.75   1,509.75   1,488.75
59,301.00 59,700.00   2,129.75   2,035.25   2,014.25   1,993.25   1,972.25   1,951.25   1,930.25   1,909.25   1,629.75   1,608.75   1,587.75   1,566.75   1,545.75   1,524.75   1,503.75
59,701.00 60,100.00   2,149.95   2,055.45   2,034.45   2,013.45   1,992.45   1,971.45   1,950.45   1,929.45   1,644.75   1,623.75   1,602.75   1,581.75   1,560.75   1,539.75   1,518.75
60,101.00 60,500.00   2,170.15   2,075.65   2,054.65   2,033.65   2,012.65   1,991.65   1,970.65   1,949.65   1,659.75   1,638.75   1,617.75   1,596.75   1,575.75   1,554.75   1,533.75
60,501.00 60,900.00   2,190.35   2,095.85   2,074.85   2,053.85   2,032.85   2,011.85   1,990.85   1,969.85   1,674.75   1,653.75   1,632.75   1,611.75   1,590.75   1,569.75   1,548.75
60,901.00 61,300.00   2,210.55   2,116.05   2,095.05   2,074.05   2,053.05   2,032.05   2,011.05   1,990.05   1,689.75   1,668.75   1,647.75   1,626.75   1,605.75   1,584.75   1,563.75
61,301.00 61,700.00   2,230.75   2,136.25   2,115.25   2,094.25   2,073.25   2,052.25   2,031.25   2,010.25   1,704.75   1,683.75   1,662.75   1,641.75   1,620.75   1,599.75   1,578.75
61,701.00 62,100.00   2,250.95   2,156.45   2,135.45   2,114.45   2,093.45   2,072.45   2,051.45   2,030.45   1,719.75   1,698.75   1,677.75   1,656.75   1,635.75   1,614.75   1,593.75
62,101.00 62,500.00   2,271.15   2,176.65   2,155.65   2,134.65   2,113.65   2,092.65   2,071.65   2,050.65   1,734.75   1,713.75   1,692.75   1,671.75   1,650.75   1,629.75   1,608.75
62,501.00 62,900.00   2,291.35   2,196.85   2,175.85   2,154.85   2,133.85   2,112.85   2,091.85   2,070.85   1,749.75   1,728.75   1,707.75   1,686.75   1,665.75   1,644.75   1,623.75
62,901.00 63,300.00   2,311.55   2,217.05   2,196.05   2,175.05   2,154.05   2,133.05   2,112.05   2,091.05   1,764.75   1,743.75   1,722.75   1,701.75   1,680.75   1,659.75   1,638.75
63,301.00 63,700.00   2,331.75   2,237.25   2,216.25   2,195.25   2,174.25   2,153.25   2,132.25   2,111.25   1,779.75   1,758.75   1,737.75   1,716.75   1,695.75   1,674.75   1,653.75
63,701.00 64,100.00   2,351.95   2,257.45   2,236.45   2,215.45   2,194.45   2,173.45   2,152.45   2,131.45   1,794.75   1,773.75   1,752.75   1,731.75   1,710.75   1,689.75   1,668.75
64,101.00 64,500.00   2,372.15   2,277.65   2,256.65   2,235.65   2,214.65   2,193.65   2,172.65   2,151.65   1,809.75   1,788.75   1,767.75   1,746.75   1,725.75   1,704.75   1,683.75
64,501.00 64,900.00   2,392.35   2,297.85   2,276.85   2,255.85   2,234.85   2,213.85   2,192.85   2,171.85   1,824.75   1,803.75   1,782.75   1,761.75   1,740.75   1,719.75   1,698.75
64,901.00 65,300.00   2,412.55   2,318.05   2,297.05   2,276.05   2,255.05   2,234.05   2,213.05   2,192.05   1,839.75   1,818.75   1,797.75   1,776.75   1,755.75   1,734.75   1,713.75
65,301.00 65,700.00   2,432.75   2,338.25   2,317.25   2,296.25   2,275.25   2,254.25   2,233.25   2,212.25   1,854.75   1,833.75   1,812.75   1,791.75   1,770.75   1,749.75   1,728.75
65,701.00 66,100.00   2,452.95   2,358.45   2,337.45   2,316.45   2,295.45   2,274.45   2,253.45   2,232.45   1,869.75   1,848.75   1,827.75   1,806.75   1,785.75   1,764.75   1,743.75
66,101.00 66,500.00   2,473.15   2,378.65   2,357.65   2,336.65   2,315.65   2,294.65   2,273.65   2,252.65   1,884.75   1,863.75   1,842.75   1,821.75   1,800.75   1,779.75   1,758.75
66,501.00 66,900.00   2,493.35   2,398.85   2,377.85   2,356.85   2,335.85   2,314.85   2,293.85   2,272.85   1,899.75   1,878.75   1,857.75   1,836.75   1,815.75   1,794.75   1,773.75
66,901.00 67,300.00   2,513.55   2,419.05   2,398.05   2,377.05   2,356.05   2,335.05   2,314.05   2,293.05   1,914.75   1,893.75   1,872.75   1,851.75   1,830.75   1,809.75   1,788.75
67,301.00 67,700.00   2,533.75   2,439.25   2,418.25   2,397.25   2,376.25   2,355.25   2,334.25   2,313.25   1,929.75   1,908.75   1,887.75   1,866.75   1,845.75   1,824.75   1,803.75
67,701.00 68,100.00   2,553.95   2,459.45   2,438.45   2,417.45   2,396.45   2,375.45   2,354.45   2,333.45   1,944.75   1,923.75   1,902.75   1,881.75   1,860.75   1,839.75   1,818.75
68,101.00 68,500.00   2,574.15   2,479.65   2,458.65   2,437.65   2,416.65   2,395.65   2,374.65   2,353.65   1,959.75   1,938.75   1,917.75   1,896.75   1,875.75   1,854.75   1,833.75
68,501.00 68,900.00   2,594.35   2,499.85   2,478.85   2,457.85   2,436.85   2,415.85   2,394.85   2,373.85   1,974.75   1,953.75   1,932.75   1,911.75   1,890.75   1,869.75   1,848.75
68,901.00 69,300.00   2,614.55   2,520.05   2,499.05   2,478.05   2,457.05   2,436.05   2,415.05   2,394.05   1,989.75   1,968.75   1,947.75   1,926.75   1,905.75   1,884.75   1,863.75
69,301.00 69,700.00   2,634.75   2,540.25   2,519.25   2,498.25   2,477.25   2,456.25   2,435.25   2,414.25   2,004.75   1,983.75   1,962.75   1,941.75   1,920.75   1,899.75   1,878.75
69,701.00 70,100.00   2,654.95   2,560.45   2,539.45   2,518.45   2,497.45   2,476.45   2,455.45   2,434.45   2,019.75   1,998.75   1,977.75   1,956.75   1,935.75   1,914.75   1,893.75
70,101.00 70,500.00   2,675.15   2,580.65   2,559.65   2,538.65   2,517.65   2,496.65   2,475.65   2,454.65   2,034.75   2,013.75   1,992.75   1,971.75   1,950.75   1,929.75   1,908.75
70,501.00 70,900.00   2,695.35   2,600.85   2,579.85   2,558.85   2,537.85   2,516.85   2,495.85   2,474.85   2,049.75   2,028.75   2,007.75   1,986.75   1,965.75   1,944.75   1,923.75
70,901.00 71,300.00   2,715.55   2,621.05   2,600.05   2,579.05   2,558.05   2,537.05   2,516.05   2,495.05   2,064.75   2,043.75   2,022.75   2,001.75   1,980.75   1,959.75   1,938.75
71,301.00 71,700.00   2,735.75   2,641.25   2,620.25   2,599.25   2,578.25   2,557.25   2,536.25   2,515.25   2,079.75   2,058.75   2,037.75   2,016.75   1,995.75   1,974.75   1,953.75
71,701.00 72,100.00   2,755.95   2,661.45   2,640.45   2,619.45   2,598.45   2,577.45   2,556.45   2,535.45   2,094.75   2,073.75   2,052.75   2,031.75   2,010.75   1,989.75   1,968.75
72,101.00 72,500.00   2,776.15   2,681.65   2,660.65   2,639.65   2,618.65   2,597.65   2,576.65   2,555.65   2,109.75   2,088.75   2,067.75   2,046.75   2,025.75   2,004.75   1,983.75
72,501.00 72,900.00   2,796.35   2,701.85   2,680.85   2,659.85   2,638.85   2,617.85   2,596.85   2,575.85   2,124.75   2,103.75   2,082.75   2,061.75   2,040.75   2,019.75   1,998.75
72,901.00 73,300.00   2,816.55   2,722.05   2,701.05   2,680.05   2,659.05   2,638.05   2,617.05   2,596.05   2,139.75   2,118.75   2,097.75   2,076.75   2,055.75   2,034.75   2,013.75
73,301.00 73,700.00   2,836.75   2,742.25   2,721.25   2,700.25   2,679.25   2,658.25   2,637.25   2,616.25   2,154.75   2,133.75   2,112.75   2,091.75   2,070.75   2,049.75   2,028.75
73,701.00 74,100.00   2,856.95   2,762.45   2,741.45   2,720.45   2,699.45   2,678.45   2,657.45   2,636.45   2,169.75   2,148.75   2,127.75   2,106.75   2,085.75   2,064.75   2,043.75
74,101.00 74,500.00   2,877.15   2,782.65   2,761.65   2,740.65   2,719.65   2,698.65   2,677.65   2,656.65   2,184.75   2,163.75   2,142.75   2,121.75   2,100.75   2,079.75   2,058.75
74,501.00 74,900.00   2,897.35   2,802.85   2,781.85   2,760.85   2,739.85   2,718.85   2,697.85   2,676.85   2,199.75   2,178.75   2,157.75   2,136.75   2,115.75   2,094.75   2,073.75
74,901.00 75,300.00   2,917.55   2,823.05   2,802.05   2,781.05   2,760.05   2,739.05   2,718.05   2,697.05   2,214.75   2,193.75   2,172.75   2,151.75   2,130.75   2,109.75   2,088.75
75,301.00 75,700.00   2,937.75   2,843.25   2,822.25   2,801.25   2,780.25   2,759.25   2,738.25   2,717.25   2,229.75   2,208.75   2,187.75   2,166.75   2,145.75   2,124.75   2,103.75
75,701.00 76,100.00   2,957.95   2,863.45   2,842.45   2,821.45   2,800.45   2,779.45   2,758.45   2,737.45   2,244.75   2,223.75   2,202.75   2,181.75   2,160.75   2,139.75   2,118.75
76,101.00 76,500.00   2,978.15   2,883.65   2,862.65   2,841.65   2,820.65   2,799.65   2,778.65   2,757.65   2,259.75   2,238.75   2,217.75   2,196.75   2,175.75   2,154.75   2,133.75
76,501.00 76,900.00   2,998.35   2,903.85   2,882.85   2,861.85   2,840.85   2,819.85   2,798.85   2,777.85   2,274.75   2,253.75   2,232.75   2,211.75   2,190.75   2,169.75   2,148.75
76,901.00 77,300.00   3,018.55   2,924.05   2,903.05   2,882.05   2,861.05   2,840.05   2,819.05   2,798.05   2,289.75   2,268.75   2,247.75   2,226.75   2,205.75   2,184.75   2,163.75
77,301.00 77,700.00   3,038.75   2,944.25   2,923.25   2,902.25   2,881.25   2,860.25   2,839.25   2,818.25   2,304.75   2,283.75   2,262.75   2,241.75   2,220.75   2,199.75   2,178.75
77,701.00 78,100.00   3,058.95   2,964.45   2,943.45   2,922.45   2,901.45   2,880.45   2,859.45   2,838.45   2,319.75   2,298.75   2,277.75   2,256.75   2,235.75   2,214.75   2,193.75
78,101.00 78,500.00   3,079.15   2,984.65   2,963.65   2,942.65   2,921.65   2,900.65   2,879.65   2,858.65   2,334.75   2,313.75   2,292.75   2,271.75   2,250.75   2,229.75   2,208.75
78,501.00 78,900.00   3,099.35   3,004.85   2,983.85   2,962.85   2,941.85   2,920.85   2,899.85   2,878.85   2,349.75   2,328.75   2,307.75   2,286.75   2,265.75   2,244.75   2,223.75


 Louisiana Administrative Code                            December 2011             100
                                                                         Title 61, Part I

                                                       Annual Louisiana Income Tax Withholding Table
    Exemptions:            0                                   1                                                                      2
    Dependents:
   SalaryRange:
  Min        Max            0        0        1         2        3         4          5           6        0        1        2        3          4          5          6
 78,901.00 79,300.00     3,119.55 3,025.05 3,004.05 2,983.05 2,962.05   2,941.05   2,920.05    2,899.05 2,364.75 2,343.75 2,322.75 2,301.75   2,280.75   2,259.75   2,238.75
 79,301.00 79,700.00     3,139.75 3,045.25 3,024.25 3,003.25 2,982.25   2,961.25   2,940.25    2,919.25 2,379.75 2,358.75 2,337.75 2,316.75   2,295.75   2,274.75   2,253.75
 79,701.00 80,100.00     3,159.95 3,065.45 3,044.45 3,023.45 3,002.45   2,981.45   2,960.45    2,939.45 2,394.75 2,373.75 2,352.75 2,331.75   2,310.75   2,289.75   2,268.75
 80,101.00 80,500.00     3,180.15 3,085.65 3,064.65 3,043.65 3,022.65   3,001.65   2,980.65    2,959.65 2,409.75 2,388.75 2,367.75 2,346.75   2,325.75   2,304.75   2,283.75
 80,501.00 80,900.00     3,200.35 3,105.85 3,084.85 3,063.85 3,042.85   3,021.85   3,000.85    2,979.85 2,424.75 2,403.75 2,382.75 2,361.75   2,340.75   2,319.75   2,298.75
 80,901.00 81,300.00     3,220.55 3,126.05 3,105.05 3,084.05 3,063.05   3,042.05   3,021.05    3,000.05 2,439.75 2,418.75 2,397.75 2,376.75   2,355.75   2,334.75   2,313.75
 81,301.00 81,700.00     3,240.75 3,146.25 3,125.25 3,104.25 3,083.25   3,062.25   3,041.25    3,020.25 2,454.75 2,433.75 2,412.75 2,391.75   2,370.75   2,349.75   2,328.75
 81,701.00 82,100.00     3,260.95 3,166.45 3,145.45 3,124.45 3,103.45   3,082.45   3,061.45    3,040.45 2,469.75 2,448.75 2,427.75 2,406.75   2,385.75   2,364.75   2,343.75
 82,101.00 82,500.00     3,281.15 3,186.65 3,165.65 3,144.65 3,123.65   3,102.65   3,081.65    3,060.65 2,484.75 2,463.75 2,442.75 2,421.75   2,400.75   2,379.75   2,358.75
 82,501.00 82,900.00     3,301.35 3,206.85 3,185.85 3,164.85 3,143.85   3,122.85   3,101.85    3,080.85 2,499.75 2,478.75 2,457.75 2,436.75   2,415.75   2,394.75   2,373.75
 82,901.00 83,300.00     3,321.55 3,227.05 3,206.05 3,185.05 3,164.05   3,143.05   3,122.05    3,101.05 2,514.75 2,493.75 2,472.75 2,451.75   2,430.75   2,409.75   2,388.75
 83,301.00 83,700.00     3,341.75 3,247.25 3,226.25 3,205.25 3,184.25   3,163.25   3,142.25    3,121.25 2,529.75 2,508.75 2,487.75 2,466.75   2,445.75   2,424.75   2,403.75
 83,701.00 84,100.00     3,361.95 3,267.45 3,246.45 3,225.45 3,204.45   3,183.45   3,162.45    3,141.45 2,544.75 2,523.75 2,502.75 2,481.75   2,460.75   2,439.75   2,418.75
 84,101.00 84,500.00     3,382.15 3,287.65 3,266.65 3,245.65 3,224.65   3,203.65   3,182.65    3,161.65 2,559.75 2,538.75 2,517.75 2,496.75   2,475.75   2,454.75   2,433.75
 84,501.00 84,900.00     3,402.35 3,307.85 3,286.85 3,265.85 3,244.85   3,223.85   3,202.85    3,181.85 2,574.75 2,553.75 2,532.75 2,511.75   2,490.75   2,469.75   2,448.75
 84,901.00 85,300.00     3,422.55 3,328.05 3,307.05 3,286.05 3,265.05   3,244.05   3,223.05    3,202.05 2,589.75 2,568.75 2,547.75 2,526.75   2,505.75   2,484.75   2,463.75
 85,301.00 85,700.00     3,442.75 3,348.25 3,327.25 3,306.25 3,285.25   3,264.25   3,243.25    3,222.25 2,604.75 2,583.75 2,562.75 2,541.75   2,520.75   2,499.75   2,478.75
 85,701.00 86,100.00     3,462.95 3,368.45 3,347.45 3,326.45 3,305.45   3,284.45   3,263.45    3,242.45 2,619.75 2,598.75 2,577.75 2,556.75   2,535.75   2,514.75   2,493.75
 86,101.00 86,500.00     3,483.15 3,388.65 3,367.65 3,346.65 3,325.65   3,304.65   3,283.65    3,262.65 2,634.75 2,613.75 2,592.75 2,571.75   2,550.75   2,529.75   2,508.75
 86,501.00 86,900.00     3,503.35 3,408.85 3,387.85 3,366.85 3,345.85   3,324.85   3,303.85    3,282.85 2,649.75 2,628.75 2,607.75 2,586.75   2,565.75   2,544.75   2,523.75
 86,901.00 87,300.00     3,523.55 3,429.05 3,408.05 3,387.05 3,366.05   3,345.05   3,324.05    3,303.05 2,664.75 2,643.75 2,622.75 2,601.75   2,580.75   2,559.75   2,538.75
 87,301.00 87,700.00     3,543.75 3,449.25 3,428.25 3,407.25 3,386.25   3,365.25   3,344.25    3,323.25 2,679.75 2,658.75 2,637.75 2,616.75   2,595.75   2,574.75   2,553.75
 87,701.00 88,100.00     3,563.95 3,469.45 3,448.45 3,427.45 3,406.45   3,385.45   3,364.45    3,343.45 2,694.75 2,673.75 2,652.75 2,631.75   2,610.75   2,589.75   2,568.75
 88,101.00 88,500.00     3,584.15 3,489.65 3,468.65 3,447.65 3,426.65   3,405.65   3,384.65    3,363.65 2,709.75 2,688.75 2,667.75 2,646.75   2,625.75   2,604.75   2,583.75
 88,501.00 88,900.00     3,604.35 3,509.85 3,488.85 3,467.85 3,446.85   3,425.85   3,404.85    3,383.85 2,724.75 2,703.75 2,682.75 2,661.75   2,640.75   2,619.75   2,598.75
 88,901.00 89,300.00     3,624.55 3,530.05 3,509.05 3,488.05 3,467.05   3,446.05   3,425.05    3,404.05 2,739.75 2,718.75 2,697.75 2,676.75   2,655.75   2,634.75   2,613.75
 89,301.00 89,700.00     3,644.75 3,550.25 3,529.25 3,508.25 3,487.25   3,466.25   3,445.25    3,424.25 2,754.75 2,733.75 2,712.75 2,691.75   2,670.75   2,649.75   2,628.75
 89,701.00 90,100.00     3,664.95 3,570.45 3,549.45 3,528.45 3,507.45   3,486.45   3,465.45    3,444.45 2,769.75 2,748.75 2,727.75 2,706.75   2,685.75   2,664.75   2,643.75
 90,101.00 90,500.00     3,685.15 3,590.65 3,569.65 3,548.65 3,527.65   3,506.65   3,485.65    3,464.65 2,784.75 2,763.75 2,742.75 2,721.75   2,700.75   2,679.75   2,658.75
 90,501.00 90,900.00     3,705.35 3,610.85 3,589.85 3,568.85 3,547.85   3,526.85   3,505.85    3,484.85 2,799.75 2,778.75 2,757.75 2,736.75   2,715.75   2,694.75   2,673.75
 90,901.00 91,300.00     3,725.55 3,631.05 3,610.05 3,589.05 3,568.05   3,547.05   3,526.05    3,505.05 2,814.75 2,793.75 2,772.75 2,751.75   2,730.75   2,709.75   2,688.75
 91,301.00 91,700.00     3,745.75 3,651.25 3,630.25 3,609.25 3,588.25   3,567.25   3,546.25    3,525.25 2,829.75 2,808.75 2,787.75 2,766.75   2,745.75   2,724.75   2,703.75
 91,701.00 92,100.00     3,765.95 3,671.45 3,650.45 3,629.45 3,608.45   3,587.45   3,566.45    3,545.45 2,844.75 2,823.75 2,802.75 2,781.75   2,760.75   2,739.75   2,718.75
 92,101.00 92,500.00     3,786.15 3,691.65 3,670.65 3,649.65 3,628.65   3,607.65   3,586.65    3,565.65 2,859.75 2,838.75 2,817.75 2,796.75   2,775.75   2,754.75   2,733.75
 92,501.00 92,900.00     3,806.35 3,711.85 3,690.85 3,669.85 3,648.85   3,627.85   3,606.85    3,585.85 2,874.75 2,853.75 2,832.75 2,811.75   2,790.75   2,769.75   2,748.75
 92,901.00 93,300.00     3,826.55 3,732.05 3,711.05 3,690.05 3,669.05   3,648.05   3,627.05    3,606.05 2,889.75 2,868.75 2,847.75 2,826.75   2,805.75   2,784.75   2,763.75
 93,301.00 93,700.00     3,846.75 3,752.25 3,731.25 3,710.25 3,689.25   3,668.25   3,647.25    3,626.25 2,904.75 2,883.75 2,862.75 2,841.75   2,820.75   2,799.75   2,778.75
 93,701.00 94,100.00     3,866.95 3,772.45 3,751.45 3,730.45 3,709.45   3,688.45   3,667.45    3,646.45 2,919.75 2,898.75 2,877.75 2,856.75   2,835.75   2,814.75   2,793.75
 94,101.00 94,500.00     3,887.15 3,792.65 3,771.65 3,750.65 3,729.65   3,708.65   3,687.65    3,666.65 2,934.75 2,913.75 2,892.75 2,871.75   2,850.75   2,829.75   2,808.75
 94,501.00 94,900.00     3,907.35 3,812.85 3,791.85 3,770.85 3,749.85   3,728.85   3,707.85    3,686.85 2,949.75 2,928.75 2,907.75 2,886.75   2,865.75   2,844.75   2,823.75
 94,901.00 95,300.00     3,927.55 3,833.05 3,812.05 3,791.05 3,770.05   3,749.05   3,728.05    3,707.05 2,964.75 2,943.75 2,922.75 2,901.75   2,880.75   2,859.75   2,838.75
 95,301.00 95,700.00     3,947.75 3,853.25 3,832.25 3,811.25 3,790.25   3,769.25   3,748.25    3,727.25 2,979.75 2,958.75 2,937.75 2,916.75   2,895.75   2,874.75   2,853.75
 95,701.00 96,100.00     3,967.95 3,873.45 3,852.45 3,831.45 3,810.45   3,789.45   3,768.45    3,747.45 2,994.75 2,973.75 2,952.75 2,931.75   2,910.75   2,889.75   2,868.75
 96,101.00 96,500.00     3,988.15 3,893.65 3,872.65 3,851.65 3,830.65   3,809.65   3,788.65    3,767.65 3,009.75 2,988.75 2,967.75 2,946.75   2,925.75   2,904.75   2,883.75
 96,501.00 96,900.00     4,008.35 3,913.85 3,892.85 3,871.85 3,850.85   3,829.85   3,808.85    3,787.85 3,024.75 3,003.75 2,982.75 2,961.75   2,940.75   2,919.75   2,898.75
 96,901.00 97,300.00     4,028.55 3,934.05 3,913.05 3,892.05 3,871.05   3,850.05   3,829.05    3,808.05 3,039.75 3,018.75 2,997.75 2,976.75   2,955.75   2,934.75   2,913.75
 97,301.00 97,700.00     4,048.75 3,954.25 3,933.25 3,912.25 3,891.25   3,870.25   3,849.25    3,828.25 3,054.75 3,033.75 3,012.75 2,991.75   2,970.75   2,949.75   2,928.75
 97,701.00 98,100.00     4,068.95 3,974.45 3,953.45 3,932.45 3,911.45   3,890.45   3,869.45    3,848.45 3,069.75 3,048.75 3,027.75 3,006.75   2,985.75   2,964.75   2,943.75
 98,101.00 98,500.00     4,089.15 3,994.65 3,973.65 3,952.65 3,931.65   3,910.65   3,889.65    3,868.65 3,084.75 3,063.75 3,042.75 3,021.75   3,000.75   2,979.75   2,958.75
 98,501.00 98,900.00     4,109.35 4,014.85 3,993.85 3,972.85 3,951.85   3,930.85   3,909.85    3,888.85 3,099.75 3,078.75 3,057.75 3,036.75   3,015.75   2,994.75   2,973.75
 98,901.00 99,300.00     4,129.55 4,035.05 4,014.05 3,993.05 3,972.05   3,951.05   3,930.05    3,909.05 3,114.75 3,093.75 3,072.75 3,051.75   3,030.75   3,009.75   2,988.75
 99,301.00 99,700.00     4,149.75 4,055.25 4,034.25 4,013.25 3,992.25   3,971.25   3,950.25    3,929.25 3,129.75 3,108.75 3,087.75 3,066.75   3,045.75   3,024.75   3,003.75
 99,701.00 100,100.00    4,169.95 4,075.45 4,054.45 4,033.45 4,012.45   3,991.45   3,970.45    3,949.45 3,144.75 3,123.75 3,102.75 3,081.75   3,060.75   3,039.75   3,018.75
100,101.00 100,500.00    4,190.15 4,095.65 4,074.65 4,053.65 4,032.65   4,011.65   3,990.65    3,969.65 3,163.80 3,142.80 3,121.80 3,100.80   3,079.80   3,058.80   3,037.80
                        (Add 5.05% for amounts in excess of $100,500)                         (Add 5.10% for amounts in excess of $100,500)

     4. In place of the withholding tables in Paragraph C.3,                            exemptions and dependency credits the taxpayer claims for
  employers may use the Subsection D.                                                   withholding purposes. The correct withholding formula
     D. Income Tax Withholding Formulas. The overall                                    depends upon the number of personal exemptions claimed
  structure of the formulas used to compute the withholding                             and annual wages.
  tax is to calculate the tax on the total wage amount and then                             1. Withholding Formulas for Single or Married
  subtract the amount of tax calculated on the personal                                 Taxpayers Claiming 0 or 1 Personal Exemption


                                                                               101              Louisiana Administrative Code                     December 2011
                                                            REVENUE AND TAXATION

     W is the withholding tax per pay period.                                       3. Perjury Statement and Signature Requirements. The
     S is employee’s salary per pay period for each bracket.
                                                                               electronic filing must be signed by the employee under
     X is the number of personal exemptions; X must be 0 or 1.
     Y is the number of dependency credits; Y must be a whole                  penalties of perjury.
        number that is 0 or greater.                                                  a. Perjury Statement. The perjury statement must
     N is the number of pay periods.
     A is the effect of the personal exemptions and dependency credits         contain the language that appears on the paper Form L-4 or
        equal to or less than $12,500;                                         L-4E. The electronic program must inform the employee that
     A=.021(((X * 4500) + (Y * 1000)) ÷ N).                                    he or she must make the declaration contained in the perjury
     B is the effect of the personal exemptions and dependency credits         statement and that the declaration is made by signing the
        in excess of $12,500
     B=.016((((X * 4500) + (Y * 1000)) – 12,500) ÷ N).                         Form L-4 or L-4E. The instructions and the language of the
     If annual wages are less than or equal to $12,500, then                   perjury statement must immediately follow the employee's
     W=.021(S) - (A + B).                                                      income tax withholding selections and immediately precede
     If annual wages are greater $12,500 but less than or equal to             the employee' electronic signature.
        $50,000, then
     W=.021(S) + .0160(S - (12,500 ÷ N)) - (A + B).                                    b. Electronic Signature. For purposes of this
     If annual wages are greater than $50,000, then
     W=.021(S) + .0160(S - (12,500 ÷ N)) + .0135(S - (50,000 ÷ N)) -
                                                                               provision, the electronic signature must identify the
        (A + B).                                                               employee filing the electronic Form L-4 or L-4E and
                                                                               authenticate and verify the filing. For purposes of this
    2. Withholding Formulas for Married Taxpayers                              provision, the terms authenticate and verify have the same
Claiming 2 Personal Exemptions                                                 meanings as they do under federal provisions concerning
     W is the withholding tax per pay period.                                  Form W-4. An electronic signature may be in any form that
     S is the employee’s salary per pay period for each bracket.               satisfies the foregoing requirements. The electronic signature
     X is the number of personal exemptions. X must be 2.                      must be the final entry in the employee's Form L-4 or L-4E
     Y is the number of dependency credits. Y must be 0 or greater.            submission.
     N is the number of pay periods.
     A is the effect of the personal exemptions and dependency credits              4. Copies of Electronic Form L-4 or L-4E. Whenever
        equal to or less than $25,000;
     A=.021(((X * 4500) + (Y * 1000)) ÷ N)
                                                                               a Form L-4 or L-4E is requested by the Department of
     B is the effect of the personal exemptions and dependency credits         Revenue, or required to be submitted to the Department of
        in excess of $25,000;                                                  Revenue, the employer must supply a hardcopy of the
     B=.0165((((X * 4500) + (Y * 1000)) - 25,000) ÷ N)                         electronic Form L-4 or L-4E and a statement that, to the best
     If annual wages are less than or equal to $25,000, then
     W=.021(S) - (A + B).
                                                                               of the employer's knowledge, the electronic Form L-4 or L-
     If annual wages are greater $25,000 but less than or equal to             4E was filed by the named employee. The hardcopy of the
        $100,000, then                                                         electronic Form L-4 or L-4E must provide exactly the same
     W=.021(S) + .0165(S - (25,000 ÷ N)) - (A + B).                            information as, but need not be a facsimile of, the paper
     If annual wages are greater than $100,000, then
     W=.021(S) + .0165(S - (25,000 ÷ N)) + .0135(S - (100,000 ÷ N))
                                                                               Form L-4 or L-4E.
        - (A + B).
                                                                                  C. Electronic Filing by All Employees. An employer is
  AUTHORITY NOTE: Promulgated in accordance with R.S.                          permitted to adopt a system under which all employees file
47:32, R.S. 47:112, R.S. 47:295 and R.S. 47:1511.                              Forms L-4 and L-4E electronically, however, it is expected
  HISTORICAL NOTE: Promulgated             by     the Louisiana                that an employer will make a paper option reasonably
Department of Revenue, Policy Services Division, LR 28:2557                    available upon request to any employee who has a serious
(December 2002), amended LR 35:255 (February 2009), LR                         objection to using the electronic system or whose access to,
35:1543 (August 2009).                                                         or ability to use, the system may be limited (for example, as
§1505. Electronic Systems for Withholding Exemption                            a result of a disability). The paper option would be satisfied,
       Certificates                                                            for example, if the employer informs employees how they
                                                                               can obtain a paper Form L-4 or L-4E and where they should
  A. Electronic Form L-4 or L-4E in general. An employer                       submit the completed paper Form L-4 or L-4E. The
may establish a system for its employees to file withholding                   Louisiana Department of Revenue also expects that
exemption certificates electronically.                                         employers will comply with all applicable law governing the
  B. Requirements for Electronic Form L-4 or L-4E                              terms and conditions of employment, such as the Americans
     1. In General. The electronic system must ensure that                     with Disabilities Act (42 U.S.C. §12112.a).
the information received is the information sent, and must                        D. Record Retention. Electronic systems for collecting
document all occasions of employee access that result in the                   and maintaining Form L-4 and L-4E data have the same
filing of a Form L-4 or L-4E. In addition, the design and                      status as paper Forms L-4 and L-4E. Therefore, guidance
operation of the electronic system, including access                           that applies to retention of paper Forms L-4 and L-4E also
procedures, must make it reasonably certain that the person                    applies to electronic Forms L-4 and L-4E.
accessing the system and filing the Form L-4 or L-4E is the
                                                                                 AUTHORITY NOTE: Promulgated in accordance with R.S.
employee identified in the form.
                                                                               47:112.G.(6), R.S. 47:112.N(6), and R.S. 47:1511.
     2. Same Information as Paper Form L-4 or L-4E. The                          HISTORICAL NOTE: Promulgated by the Department of
electronic filing must provide the employer with exactly the                   Revenue, Policy Services Division LR 28:1488 (June 2002).
same information as the paper Form L-4 or L-4E.


Louisiana Administrative Code                        December 2011       102
                                                            Title 61, Part I

§1510. Requirements for Substitute Form W-2, Copy 2,                           b. State core data boxes contain information
       Furnished to Payees                                              specifically required by the state and must be placed at the
                                                                        bottom of the form. State data boxes are as follows:
   A. All payers (employers) must furnish payees
(employees) with at least three copies of the Form W-2. This                     i.   box   16—employer's               state      and   state
regulation pertains to Copy 2, to be filed with the employee's          identification number;
state income tax return. Any privately printed substitute                            ii.     box 17—state wages, tips, etc.; and
Form W-2, Copy 2, must conform to the specifications of
                                                                                    iii.     box 18—state income tax withheld.
this rule in order to be acceptable to the Louisiana
Department of Revenue and Taxation.                                            c. Other federal data required to be present on the
                                                                        form in boxes similar to the core data boxes. These data
   B. Definitions. For the purpose of this rule, the following          boxes may be placed in any location, other than the location
terms are defined.                                                      reserved for federal and state core data items:
     Copy 2―the state copy of the employee wage and tax
                                                                                      i.     employer's name, address, and ZIP code;
statement or Form L-2.
                                                                                     ii.     employer identification number (EIN);
    Substitute Form W-2―any form not printed and
provided by the Internal Revenue Service (IRS).                                     iii.     employee's Social Security number; and
  C. Specific Requirements―Form W-2, Copy 2                                         iv.      employee's name, address, and ZIP code.
    1.        Form Size and Layout                                             5.        Document Labeling
      a. The length should be at least 3 1/2 inches but not                    a. The form title and number may be printed at the
more than 6 1/2 inches.                                                 top of the form.
      b. The width should be at least 5 1/2 inches but not                          b.     The tax year must be clearly printed on the form.
more than 8 1/2 inches.
                                                                               c. The form should be labeled "Copy 2, to be filed
       c. The use of either a horizontal or a vertical format           with the employee's state income tax return."
is permitted.                                                             AUTHORITY NOTE: Promulgated in accordance with R.S.
    2.        Paper Type and Weight                                     47:112(L).
                                                                          HISTORICAL NOTE: Promulgated by the Department of
         a.     The paper must be white.                                Revenue and Taxation, Research and Technical Services Division,
                                                                        LR 19:1176 (September 1993).
       b. The paper weight must be at least 14 pound
(basis 17 x 22-500).                                                    §1515. Withholding Tax Annual Reconciliation And
                                                                               Employee Withholding Statements―Electronic
    3.        Print Quality Standards                                          Filing Requirements
         a.     The copy must be clearly legible;                         A. Employers are required to file an annual
      b. the copy must have the capability to be                        reconciliation of state income tax withheld, Form L-3, with
photocopied;                                                            copies of the employee withholding statements, Form W-2s.

      c. fading must not be of such a degree as to                           1. The reconciliation and employee withholding
preclude legibility and the ability to photocopy; and                   statements must be filed on or before the first business day
                                                                        following February 27 for the preceding calendar year.
       d. MICR ink cannot be used to print any portion of
the form.                                                                    2. If a business terminates during the year, the
                                                                        reconciliation and employee withholding statements must be
    4.        Document Format                                           filed within 30 days after the last month in which the wages
       a. Federal core data boxes, containing information               were paid.
required by the IRS, must be printed in the same size, order,                3. If the due date falls on a weekend or holiday, the
and arrangement as on the IRS printed form or as approved               report is due the next business day and becomes delinquent
by the IRS. No boxes or other information may be printed to             the next day.
the right of this data. Federal core data boxes are as follows:
                                                                          B. The following employers are required to file the
           i.     box 1—wages, tips, other compensation;                annual reconciliation, Form L-3, and the employee
          ii.     box 2—federal income tax withheld;                    withholding statements, Form W-2s, electronically:
         iii.     box 3—Social Security wages;                              1. Employers that file 250 or more employee
         iv.      box 4—Social Security tax withheld;                   withholding statements due on or after January 1, 2008.
          v.      box 5—Medicare wages and tips; and                        2. Employers that file 200 or more employee
         vi.      box 6—Medicare tax withheld.                          withholding statements due on or after January 1, 2010.



                                                                  103          Louisiana Administrative Code                    December 2011
                                                   REVENUE AND TAXATION

    3. Employers that file 150 or more employee                          B. Withholding Requirement for Nonresident Team
withholding statements due on or after January 1, 2012.                 Members
    4. Employers that file 100 or more employee                             1. Professional Athletic Teams Not Domiciled in
withholding statements due on or after January 1, 2014.                 Louisiana
    5. Employers that file 50 or more employee                                 a. Any professional athletic team that is not
withholding statements due on or after January 1, 2016.                 domiciled in Louisiana and that pays compensation to a
                                                                        nonresident individual for services rendered to the team
  C. Electronic Filing Options—The annual reconciliation,
                                                                        within Louisiana shall be deemed to be an employer making
Form L-3, and the employee withholding statements, Form
                                                                        payment of wages and shall be required to withhold
W-2, may be filed electronically as follows:
                                                                        Louisiana individual income tax from that portion of the
    1. Electronic filing using the LaWage electronic filing             compensation for services rendered to the team attributable
application      via        the       LDR         website,              to duty days spent in Louisiana, as defined in
www.revenue.louisiana.gov.                                              LAC 61:I.1304.I, for each game played in Louisiana.
    2.      Submission on CD or DVD                                             b. This Section does not alter the professional
                                                                        athletic team's withholding requirements for team members
       a. Records must be submitted using a record layout               who are residents of Louisiana. The withholding for these
that is consistent with the Internal Revenue Code                       team members must be as provided for in R.S. 47:111.
requirements.
                                                                             2. Professional Athletic Teams with a Louisiana
      b. CDs and DVDs must be labeled with the
                                                                        Domicile. Professional athletic teams that are domiciled in
following information:
                                                                        Louisiana must withhold for all team members as provided
           i.   File name;                                              for in R.S. 47:111.
          ii.   Employer's Louisiana account number;                        3. This Section does not alter any professional athletic
                                                                        team member's requirement to file the income tax schedule
         iii.   Employer's name;                                        required under LAC 61:I.1305.
         iv.    Employer's mailing address;                                C. Rate of Withholding. The withholding tax rate under
          v.    Tax year; and                                           this Section shall be 4.2 percent of the compensation
                                                                        attributable to "duty days" spent in Louisiana.
        vi. The CD or DVD number and total number of
CDs or DVDs for multi-volume submissions (example: 1 of                   D. Due Date of Withholding Return and Payment. A
3, etc.).                                                               withholding return and payment must be submitted for each
                                                                        game played in Louisiana. The withholding return and
    3. Submissions by magnetic media including tapes                    payment must be submitted on or before the last day of the
and tape cartridges are no longer allowed.                              month following the month in which the game was played.
  D. Separate submissions must be made for each                           E. Account Numbers
employer.
                                                                            1. Each professional athletic team not domiciled in
   AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                        Louisiana will be issued an identification number by the
47:1511 and R.S. 47:114.
   HISTORICAL NOTE: Promulgated         by    the  Louisiana            department.
Department of Revenue, Policy Services Division, LR 28:1489                  2. The professional athletic team filing the
(June 2002), amended LR 35:2204 (October 2009).                         withholding return must be clearly identified by name,
§1520. Withholding by Professional Athletic Teams                       address and Louisiana revenue account identification
                                                                        number. The team's federal employer identification number
  A. Definitions
                                                                        will not be accepted as a substitute. The withholding return
    Nonresident―any person not domiciled, residing in, or               will not be considered complete unless the team's Louisiana
having a permanent place of abode in Louisiana.                         revenue account identification number is on the return.
    Professional Athletic Team―a member team of a                         F.   Annual Reconciliation Schedule
professional sports association or league.
                                                                             1. All professional athletic teams that pay
     Team Member―shall include those employees of a                     compensation to a nonresident individual for services
professional athletic team who are active players, players on           rendered to the team within Louisiana must submit an annual
the disabled list, and any other persons required to travel and         withholding reconciliation schedule that includes a list of all
who travels with and perform services on behalf of a                    team members who received Louisiana source income
professional athletic team on a regular basis. This definition          during the year. The list must include the following
includes, but is not limited to, coaches, managers, and                 information:
trainers.



Louisiana Administrative Code                 December 2011       104
                                                             Title 61, Part I

       a. the name, Social Security number, and permanent                     3. This agreement will be binding on the secretary and
physical address of all team members regardless of                       the professional athletic team until it is revoked. Either party
residency, and                                                           may revoke this agreement.
       b.    for each nonresident team member:                             AUTHORITY NOTE: Adopted in accordance with R.S.
                                                                         39:100.1, R.S. 47:164(D), R.S. 47:295, R.S. 47:1511, and R.S.
       i.    the total number of duty days spent with the                47:1602.1.
team during the taxable year;                                              HISTORICAL NOTE: Promulgated by the Department of
                                                                         Revenue, Policy Services Division, LR 30:91 (January 2004).
       ii.     the number of duty days spent in Louisiana;
                                                                         §1525. Income Tax Withholding on Gaming Winnings
       iii.   the total amount of compensation for services
rendered to the team;                                                       A. Withholding Requirement for Gaming Winnings

       iv.    the amount of compensation for services                         1. Every person or business that pays gaming
rendered to the team in Louisiana; and                                   winnings won in Louisiana is required to withhold
                                                                         individual income taxes at a rate of six percent if income
        v.    the total amount deducted and withheld under               taxes are required to be withheld for the Internal Revenue
this Section.                                                            Service under 26 USC 3402 on the same winnings.
    2. The annual reconciliation schedule is due on or                        2. Additionally following current Department of
before the first business day following February 27 of each              Revenue practice, casinos that pay slot machine winnings in
year for the preceding calendar year. The secretary may                  excess of $1,200 should issue a form W2-G and withhold at
grant a reasonable extension of time, not exceeding 30 days              a rate of 6 percent of the slot machine winnings regardless of
for the filing of the annual reconciliation schedule. The                the Internal Revenue Code withholding on such slot machine
annual reconciliation schedule is not considered to be                   winnings.
remitted until it is complete.
                                                                            B. Reporting Requirements for Gaming Winnings
     3. The permanent address listed on the annual
reconciliation schedule will be presumed to be the residence                 1. Businesses that withhold income taxes on gaming
of the team member for purposes of administering the Sports              winnings shall electronically report and remit the
Facility Assistance Fund.                                                withholdings to the Louisiana Department of Revenue
                                                                         quarterly.
  G. Penalty for Failure to Timely Remit Schedules and
Payments                                                                      2. Businesses required to withhold and to submit
                                                                         income taxes on gaming winnings shall send the Department
     1. The following penalties will be imposed for failure              of Revenue a report electronically containing a list of all
to timely remit these returns, schedules, and payments.                  winners annually in a format approved by the department.
       a. In the case of failure to timely remit any return or           The report shall contain the following information as printed
schedule required by this Section, the penalty shall be $500             on federal form W-2G:
for the first such failure, $1,000 for the second such failure                  a. the payor’s          name,   address,    and   federal
within the three-year period beginning on the due date of the            identification number;
first delinquent return or schedule, and $2,500 for each
subsequent failure within the three-year period beginning on                   b. the winner’s name, address, social security
the due date of the first delinquent return or schedule.                 number, gross winnings, amount of federal income taxes
                                                                         withheld, and amount of state income taxes withheld.
       b. In the case of failure to timely remit any payment
required by this Section, the penalty shall be 5 percent of the            AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                         47:287.71, R.S. 47:287.785, and R.S. 47:1511.
total payment due if the delinquency is for not more than
                                                                           HISTORICAL NOTE: Promulgated by the Department of
30 days, with an additional 5 percent for each additional                Revenue, Policy Service Division, LR 36:2877 (December 2010).
30 days or fraction thereof during which the delinquency
continues, not to exceed 50 percent of the amount due.                      Chapter 16. Louisiana Entertainment
  H. Exception to Withholding Requirement under This                          Industry Tax Credit Programs
Section
                                                                                   Subchapter A. Motion Picture
    1. The secretary may grant an exception to
withholding requirements under this Section to any                                  Investor Tax Credit Program
professional athletic team not domiciled in Louisiana that               §1601. Purpose
agrees in writing to file team composite returns and remit
composite payments as provided in LAC 61:I.1304.J.                         A. The purpose of this Chapter is to implement the
                                                                         Motion Picture Investor Tax Credit Program as established
    2. The composite return and composite payment will                   by R.S. 47:6007.
be considered to be a return and payment required by the
secretary to administer the provisions of the Sports Facility              B. This Chapter shall be administered to achieve the
Assistance Fund.                                                         following:


                                                                  105           Louisiana Administrative Code              December 2011
                                                     REVENUE AND TAXATION

     1. to encourage development of a strong capital and                      2.   Infrastructure
infrastructure base within the state for the motion picture and
                                                                                 a. If the total base investment exceeds $300,000,
related industries;
                                                                          each investor shall be allowed a tax credit based upon their
     2. to achieve a            self-supporting,   independent,           investment as follows:
indigenous industry; and
                                                                                   i.   a 40 percent tax credit for state-certified
     3. to encourage development of state of the art motion               infrastructure projects, for which applications for initial
picture production and post-production facilities:                        certification were received by the office and the department
                                                                          prior to January 1, 2009:
       a. in the short-term, to attract private investors in
state-certified productions and state-certified infrastructure                       (a). for applications received before August 1,
projects;                                                                 2007, there shall be no per project cap on tax credits, except
                                                                          as otherwise provided by the terms of the initial certification;
       b. in the long-term, to encourage the development
of a skilled state workforce trained in the film and video                            (b).   for applications received after August 1,
industry.                                                                 2007, the total tax credit allowed for a state-certified
                                                                          infrastructure project shall not exceed $25,000,000 per
  C. This Chapter shall apply to any person:
                                                                          project.
    1.   claiming a credit;
                                                                            B. Investor tax credits shall be transferable under the
    2.   transferring or selling a credit; or                             following conditions.
    3.   acquiring a credit under this program.                                1. Tax credit shall be earned by investors at the time
                                                                          expenditures are made in a state-certified production or
  AUTHORITY NOTE: Promulgated in accordance with
                                                                          state-certified infrastructure project.
R.S. 47:1125.1.
  HISTORICAL NOTE: Promulgated by the Department                               2. Credits become transferable only after final
of Economic Development, Office of Business                               certification of expenditures.
Development,     Office    of    Entertainment Industry
                                                                            AUTHORITY NOTE: Promulgated in accordance with
Development and the Office of the Governor, Division of
                                                                          R.S. 47:1125.1.
Administration, LR 36:52 (January 2010).
                                                                            HISTORICAL NOTE: Promulgated by the Department
§1603. General Description                                                of Economic Development, Office of Business
  A. The program offers two distinctive incentives:                       Development,     Office    of    Entertainment Industry
production and infrastructure.                                            Development and the Office of the Governor, Division of
                                                                          Administration, LR 36:53 (January 2010).
    1.   Production
                                                                          §1605. Definitions
       a. If the total base investment exceeds $300,000,
                                                                            A. Terms not otherwise defined in this Chapter shall
each investor shall be allowed a tax credit based upon their
                                                                          have the same meaning given to them in R.S. 47:6007,
investment as follows:
                                                                          unless the context clearly requires otherwise.
         i.   for state-certified productions initially certified           B. In this Chapter, the following terms shall have the
on or after January 1, 2004, but before January 1, 2006:                  meanings provided herein, unless the context clearly
           (a) a 10 percent tax credit, if the total base                 indicates otherwise.
investment is more than $300,000 and less than $8,000,000;
                                                                               Allocatee—an individual or entity that received an
           (b) a 15 percent tax credit, if the total base                 allocation of investment tax credits.
investment is more than $8,000,000.
                                                                               Allocator—an individual or entity that makes an
        ii.   a 25 percent tax credit for state-certified                 allocation of investment tax credits.
productions initially certified on or after January 1, 2006, but             Base Investment—cash or cash equivalent investment
before July 1, 2009;
                                                                          made and used for:
      iii.   a 30 percent tax credit for state-certified
                                                                                  a. production expenditures in the state for a state-
productions initially certified on or after July 1, 2009.
                                                                          certified production;
      b. An additional payroll tax credit shall be allowed                       b. infrastructure expenditures in the state for the
for any base investment expended on behalf of employing                   development of a state-certified infrastructure project.
Louisiana residents on state-certified productions as follows:
                                                                          Infrastructure Expenditures shall include, but are not limited
        i.   a 10 percent tax credit for state-certified                  to, expenditures for infrastructure project development, film
productions initially certified before July 1, 2009; or                   and television production spaces, post-production
                                                                          equipment, facilities, equipment for distribution companies
       ii.   a 5 percent payroll tax credit for state-certified           domiciled within Louisiana, transportation equipment, land
productions initially certified on or after July 1, 2009.                 acquisition and closing costs, construction costs, design and

Louisiana Administrative Code                   December 2011       106
                                                              Title 61, Part I

professional consulting fees associated with the state-                            i.    a transaction that is subject to the states sales or
certified infrastructure project, furniture, fixtures,                    lease tax provision of Title 47 of the Louisiana Revised
equipment, and financing costs. Infrastructure expenditures               Statutes of 1950 shall include transactions that are also
shall not include indirect costs, any amounts that are later              subject to statutory exclusion or exemption.
reimbursed by a third party, any costs related to the
                                                                              Expenditure―actual payment of cash or cash
allocation or transfer of tax credits, any amounts that are
                                                                          equivalent, paid by or on behalf of a state certified
paid to persons or entities as a result of their participation in
                                                                          production or state-certified infrastructure project,
profits from the exploitation of the state-certified
                                                                          exchanged for goods or services, as evidenced by an invoice,
Infrastructure Project.
                                                                          receipt or other such document.
     Begin Construction―for projects with applications filed
                                                                              Indirect Costs—costs of operation that are not directly
after August 1, 2007, construction of an infrastructure
                                                                          associated with a specific production or infrastructure
project shall begin when:
                                                                          project, such as clerical salaries, general administrative costs
       a.   in the case of a new building, either:                        and other overhead charges.
         i.    materials to be used in the project, worth more                Louisiana Resident, Resident, or Resident of
than 5 percent of the construction budget, are placed at the              Louisiana―a natural person domiciled in the state of
project site; or                                                          Louisiana. Domicile may be established:
        ii.   other work is performed on the site which is                       a. by maintaining a permanent place of abode
visible from a simple inspection and reasonably indicates                 within the state and spending in the aggregate more than six
that the work has begun, such as substantial land fill, soil              months of each year in the state; or
reinforcement or pouring of a foundation. The following are
                                                                                b. by agreeing in writing to file a Form IT 540 or
examples of services which do not indicate that work has
                                                                          Form IT 540B as applicable, for the taxable year employed
begun; services of surveyors or engineers; cutting or
                                                                          by the motion picture production company, provided the
removal of trees; demolition of existing structures or
                                                                          person subsequently files the form and pays any Louisiana
clearing of the land surface;
                                                                          income tax due.
       b. in the case of a retrofit project to an existing
                                                                               Non-Applicable      Production        Expenditures―the
structure:
                                                                          following expenses are not eligible to earn tax credits:
         i.    materials to be used in the project, worth more
                                                                                   a.   expenditures for marketing and distribution;
than 10 percent of the construction budget, are placed at the
project site; or                                                                   b.   non-production related overhead;
       ii.   equipment to be used in the project, worth                         c. amounts reimbursed by the state or any other
more than 20 percent of the construction budget, is placed                governmental entity;
and operational at the project site.
                                                                                   d.   costs related to the transfer of tax credits;
    Commencement of Production―beginning principal
                                                                                  e. amounts that are paid to persons or entities as a
photography or equivalent process.
                                                                          result of their participation in profits from the exploitation of
    Commissioner―Commissioner of Administration.                          the production;
   Department―Louisiana Department               of   Economic                     f.   the application fee;
Development, or its successor.
                                                                                   g.   state or local taxes;
     Developer―a person responsible for the development
                                                                                 h. any other expenditure not allowed by law or
of a state-certification infrastructure project.
                                                                          regulation.
    Director―Director of the Office of Entertainment
                                                                                 Office―Office of Entertainment Industry Development.
Industry Development (the office).
                                                                               Payroll―all salary, wages and other compensation,
    Division―Division of Administration.
                                                                          including benefits paid to an employee and taxable in this
    Expended in the State―                                                state. However, payroll for purposes of the additional tax
                                                                          credit for Louisiana-resident payroll shall exclude any
       a. an expenditure to lease immovable property
                                                                          portion of an individual salary in excess of one-million
located in the state;
                                                                          dollars.
      b. an expenditure as compensation for services
                                                                               Person―there are two kinds of persons; natural and
performed in the state; or
                                                                          juridical.
       c. an expenditure to purchase or lease tangible
                                                                                   a.   A natural person is a human being.
personal property within the state where the transaction is
subject to the state sales or lease tax provisions of Title 47 of
the Louisiana Revised Statutes of 1950:


                                                                    107          Louisiana Administrative Code               December 2011
                                                    REVENUE AND TAXATION

       b. A juridical person is an entity to which the law               property and equipment related thereto, or any other facility
attributes personality, such as a corporation, partnership or            which supports and is a necessary component of such
limited liability company.                                               proposed state-certified infrastructure project, all as
                                                                         determined and approved by the office, the Secretary of the
     Production Expenditures―preproduction, production
                                                                         Department of Economic Development, and the Division of
and postproduction expenditures directly incurred in this
                                                                         Administration under such terms and conditions as are
state that are directly used in a state-certified production,
                                                                         authorized by this Section. The term infrastructure project
whether the production company directly contracts or
                                                                         shall not include movie theaters or other commercial
subcontracts such work, including without limitation the
                                                                         exhibition facilities.
following:
                                                                              State-Certified Production―a production approved by
       a.   set construction and operation;
                                                                         the office and the secretary which is produced by a motion
       b.   wardrobes, make-up, accessories, and related                 picture production company domiciled and headquartered in
services;                                                                Louisiana and which has a viable multi-market commercial
                                                                         distribution plan.
      c. costs associated with photography and sound
synchronization, lighting, and related services and materials;                Transferee―an individual or entity that receives a
                                                                         transfer of investor tax credits.
       d.   editing and related services;
                                                                              Transferor―an individual or entity that makes a transfer
       e.   rental of facilities and equipment;
                                                                         of an investor tax credit.
       f.   leasing of vehicles;
                                                                           AUTHORITY NOTE: Promulgated in accordance with
       g.   costs of food and lodging;                                   R.S. 47:1125.1.
                                                                           HISTORICAL NOTE: Promulgated by the Department
       h. digital or tape editing, film processing, transfer of          of Economic Development, Office of Business
film to tape or digital format, sound mixing, special and                Development,     Office    of    Entertainment Industry
visual effects (if services are performed in Louisiana);                 Development and the Office of the Governor, Division of
       i. total aggregate payroll (limited to the amount of              Administration, LR 36:53 (January 2010).
total payroll expended in Louisiana and which is taxable to              §1607. Certification Procedures
the recipient in Louisiana. A Louisiana tax return is required
to be filed reflecting the amount of compensation paid while               A. Application
the recipient is located in Louisiana. If the recipient is not a             1. An application for initial certification shall be
Louisiana resident, then a non-resident income tax return                submitted with an application fee payable to the Office, as
should be filed);                                                        required by R.S. 47:6007(D)(2)(b).
      j. music, if performed, composed or recorded by a                         a. All applications shall include information as
Louisiana resident , or released or published by a Louisiana-            required by R.S. 47:6007(D)(2)(a).
domiciled and headquartered company;
                                                                               b. In addition, the following program specific
       k.   airfare, if purchased through a;                             information is required.
      l. insurance costs or bonding, if purchased through                        i.     Production:
a Louisiana company;
                                                                                     (a). working title of the production. Should the
       m. payments to a loan-out or personal services                    title change, the state-certified production needs to inform
corporation for the services of an out-of-state hire are                 the office as soon as that change is made;
allowed as long as the services are performed in Louisiana
on a state certified production;                                                      (b). name of the requesting production company;

       n.   cost of the independent audit.                                           (c). name, telephone number, e-mail address and
                                                                         attesting signature of the requesting production company's
     Production Facility―a physical facility that provides               contact person;
the goods or services necessary for completing the major
activities of motion picture production.                                            (d). approximate beginning and ending date of
                                                                         production in Louisiana;
   Secretary―Secretary of the Department of Economic
Development.                                                                          (e). Louisiana office address;

    Source within the State―a physical facility in                                  (f). telephone number of requesting company’s
Louisiana, operating with posted business hours and                      Louisiana office address;
employing at least one full-time equivalent employee.                               (g). estimated total production-related costs of
     State-Certified Infrastructure Project―shall mean a                 production;
film, video, television, and digital production and                                  (h). estimated total amount of production-related
postproduction facility, and movable and immovable                       costs to be expended in Louisiana;

Louisiana Administrative Code                  December 2011       108
                                                               Title 61, Part I

           (i). estimated total payroll to be paid by the                      1. the impact of the production or infrastructure
requesting production company to Louisiana residents                       project on the immediate and long-term objectives of R.S.
employed by the requesting production company in                           47:6007;
connection with the production;
                                                                               2. the impact of the production or infrastructure
           (j). a preliminary budget including the estimated               project on the employment of Louisiana residents;
Louisiana payroll and estimated in-state investment;
                                                                               3. the impact of the production or infrastructure
           (k). a copy of script (including synopsis) will be              project on the overall economy of the state.
made available to OEID and subsequently returned to the
                                                                              C. Initial Certification
applicant;
                                                                               1. After review and upon a determination of
            (l). list of principal creative elements such as
                                                                           qualification, initial certification will be issued as follows.
principal cast, producer, and director; and
                                                                                       a.     Production
          (m). facts sufficient for the office and the
department to determine each of the following:                                       i.    The office and the department shall issue an
                                                                           initial certification letter to the applicant, verifying the status
            (i). that the requesting production company is
                                                                           of the production as a state certified production.
a motion picture production company as defined in R.S.
47:6007(B)(6);                                                                         b.     Infrastructure
            (ii). that the requesting production company is                         i.   The office, the department and the division
domiciled and headquartered in Louisiana; and                              shall issue an initial certification letter to the applicant,
                                                                           verifying the status of the project as a state certified
               (iii). that the requesting production company
                                                                           infrastructure project.
has either a viable multi market distribution plan or a signed
distribution agreement with either a major theatrical                           2. Additional information may be requested by the
exhibitor, television network or cable television programmer               office, the department and/or the division in order to make a
for distribution of the production.                                        determination of eligibility for the program.
       ii.     Infrastructure:                                                 3. Initial certifications shall be issued in the amount
                                                                           determined to be eligible, and:
             (a). working name of the infrastructure project;
                                                                                 a. shall contain a unique identifying number for
             (b). name    of     the   requesting   infrastructure
                                                                           each production or project;
company;
                                                                                  b. may require state-certified productions to display
          (c). name, telephone number, e-mail address and
                                                                           an animated state brand or logo as a condition for receiving
attesting signature of the requesting infrastructure
                                                                           tax credits.
company’s contact person;
                                                                                  4.        Duration of Effect
           (d). approximate beginning and ending date of
construction in Louisiana;                                                        a. Once an initial certificate is issued by the office,
                                                                           the department (and the division where appropriate), the
             (e). Louisiana office address;
                                                                           applicant or official representative must countersign and
           (f). telephone number of requesting company’s                   return an original to the office, within 30 business days,
Louisiana office address;                                                  acknowledging initial certification status.
           (g). estimated total project-related costs or total                    b. For productions, initial certification shall be
costs associated with the infrastructure project;                          effective for a period 12 months prior to and 12 months after
                                                                           the date of initial certification, unless the production has
           (h). a preliminary operating budget including the
                                                                           commenced, in which case the initial certification shall be
estimated Louisiana payroll and estimated in-state
                                                                           valid until the production is completed.
investment;
                                                                              D. Final Certification; Audit Requirements
          (i). a detailed business plan outlining the exact
proposed costs;                                                                 1. Prior to any final certification of credits, the motion
                                                                           picture production company applicant shall submit to the
            (j). total number of jobs to be created by the
                                                                           office a notarized statement demonstrating conformity with
infrastructure project.
                                                                           and agreeing to the following:
  B. Qualification. The office and the secretary, and in the
                                                                                   a. to pay all undisputed legal obligations incurred in
case of infrastructure projects, the division, shall determine
                                                                           the state;
whether a production or infrastructure project qualifies for
certification, by meeting all requirements of R.S. 47:6007                       b. to publish upon completion of principal
and these regulations, and taking the following factors into               photography a notice at least once a week for three
consideration:                                                             consecutive weeks in local newspapers in regions where


                                                                     109          Louisiana Administrative Code              December 2011
                                                     REVENUE AND TAXATION

filming has taken place, notifying creditors to file any claims               1. the office shall promptly provide written notice of
within a specific date;                                                   such denial to the Senate Committee on Revenue and Fiscal
                                                                          Affairs and the House Committee on Ways and Means;
      c. that the outstanding obligations are not waived
should a creditor fail to file by the specific date;                          2.   the applicant may appeal as follows:
       d. to delay any claims for credits until the office                       a. an applicant may appeal within 30 days from
delivers written notice to the Secretary of the Department of             receipt of a denial. Receipt will be conclusively presumed
Revenue that the production company has fulfilled all                     from the sending of the denial by electronic mail to an
requirements for the credit.                                              address provided by the applicant or by a return receipt
                                                                          evidencing delivery by U.S. Postal Service or private carrier;
    2. When requesting final certification of credits, the
motion picture production company or infrastructure project                      b. the appeal is made by delivery of a written
applicant shall submit to the office the following:                       objection, with supporting documentation to the secretary
                                                                          and also in the case of infrastructure projects to the
       a. a cost report, certified by a state licensed,
                                                                          commissioner;
independent certified public accountant and complying with
the minimum standards as required by R.S.                                        c. within 30 days of receipt of a timely appeal, the
47:6007(D)(2)(d). The cost report may be subject to                       secretary (or his designee) and the commissioner, where
additional audit by the department, the division, or the                  applicable, will review the appeal, and issue a joint written
Department of Revenue, at the applicant’s expense.                        determination. The secretary and the commissioner may
                                                                          extend the time for the determination for an additional 30
         i.   Incorrect Reporting. If an applicant submits a
                                                                          days. In the event the secretary and the commissioner do not
cost report required by the provisions of this Chapter and the
                                                                          agree, or fail to issue a determination within the required
report made and filed contains material misstatements,
                                                                          time, the appeal is deemed denied;
including but not limited to misrepresentation in or
intentional omission from the cost report of events,                             d. the written determination shall be the final
transactions, or other significant information there may be               agency decision of the department, and the division where
cause for an additional audit.                                            applicable;
        ii.   Related Party Transactions. If an audit contains                   e. the applicant may appeal an adverse decision to
related party transactions in excess of 20 percent of the total           the Nineteenth Judicial District Court.
expenditures reported in the submitted audit there may be
                                                                             AUTHORITY NOTE:           Promulgated in accordance with R.S.
cause for an additional audit.                                            47:6007.
        iii.  Reimbursement of Audit Costs. The                              HISTORICAL NOTE: Promulgated by the Department of
department may undertake additional audit at the applicant’s              Economic Development, Office of Business Development, Office
                                                                          of Entertainment Industry Development and the Office of the
expense, to be performed by a state certified public                      Governor, Division of Administration, LR 36:55 (January 2010),
accountant also certified in financial forensics or also                  amended by the Department of Economic Development, Office of
certified as a fraud examiner. Audit fees will be assessed at             the Secretary, Office of Business Development, and the Louisiana
the department’s contracted fee, with a minimum of $2,000                 Economic Development Corporation, LR 37:514 (February 2011).
and a maximum of $15,000 fee per audit.                                   §1609. Additional Program Provisions―Production
       b.   additional information as may be requested.                     A. Payroll Tax Credit
     3. After review and upon a determination of                               1. To the extent base investment is expended on
qualification, a final tax credit certification letter indicating         payroll for Louisiana residents employed in connection with
the amount of tax credits certified for the production or                 a state-certified production:
infrastructure project will be issued by the director, the
secretary (or his designee) and also in the case of                              a. for state-certified productions initially certified
infrastructure projects, the commissioner.                                before July 1, 2009, each investor shall be allowed an
                                                                          additional tax credit of 10 percent of such payroll;
    4. Multiple requests for final certification may be
submitted.                                                                       b. for state-certified productions initially certified
                                                                          after July 1, 2009, each investor shall be allowed an
       a. Each submission must be accompanied by an                       additional tax credit of 5 percent of such payroll.
audited cost report indicating expenditures.
                                                                               2. However, if the payroll to any one person exceeds
       b. Two submissions shall be certified at no                        $1,000,000, this additional credit shall exclude any salary for
additional fee by the office.                                             that person in excess of $1,000,000.
        c. Additional charges may apply for three or more                   AUTHORITY NOTE: Promulgated in accordance with
certification requests.                                                   R.S. 47:1125.1.
   E. Appeal Process. In the event that an application for                  HISTORICAL NOTE: Promulgated by the Department
initial or final certification is denied:                                 of Economic Development, Office of Business
                                                                          Development,    Office of Entertainment  Industry

Louisiana Administrative Code                  December 2011        110
                                                             Title 61, Part I

Development and the Office of the Governor, Division of                  acts, omissions or failures shall constitute a default, and the
Administration, LR 36:56 (January 2010).                                 office shall retain all rights to modify the terms and
§1611. Additional Program Provisions―Infrastructure                      conditions of the certification, and to reclaim disbursed
                                                                         credits in an amount commensurate with the scope of the
  A. Tax credits may be granted only for infrastructure                  unmet performance objectives and the foregone benefits to
projects directly related to the acquisition and construction            the state. Reclamation shall not begin unless the office has
of a film, video, television, or video production or                     determined, after an analysis of the benefits of the project to
postproduction facility and shall not apply to any                       the state and the unmet performance objectives, that the state
infrastructure project such as a hotel or lodging facility, golf         has not satisfactorily or adequately recouped its costs
course, or retail shopping facility or other facility which the          through the benefits provided by the project.
department and the division deem unrelated to such
purposes.                                                                 B. For infrastructure applications received prior to
                                                                         August 1, 2007:
     1. If an infrastructure project may be used for other
purposes unrelated to the production or postproduction                        1. the applicant shall have 24 months from the date of
activities, tax credits may be granted for that portion of the           approval of the rules or January 1, 2008, whichever is
project that is deemed by the department and the division to             earlier, in which to qualify for the 40 percent tax credits
be necessary to support or secure production or                          earned on expenditures;
postproduction activities.                                                    2. a minimum of 20 percent or $10,000,000 of the
    2. In the case of immovable assets deemed related, an                total base investment (as provided for in the initial
applicant must provide assurances that:                                  certification) that is unique to film production infrastructure
                                                                         shall be expended before any infrastructure tax credits can
        a. such assets will exclusively support the initially            be earned.
certified film infrastructure project; and
                                                                              3. payment of tax credits earned may be structured
       b. that the applicant will not divert the use of the              over the course of two or more tax years, and may be made
assets to purposes that do not promote or provide for the                after the year expenditures are made, as provided for in the
productions within the state of Louisiana.                               initial certification.
    3. In the case of movable assets deemed related, an                     C. For infrastructure applications received after August
applicant must provide assurances that:                                  1, 2007 and before January 1, 2009:
      a. the moveable assets shall remain in Louisiana,                      1. the tax credit shall be 40 percent of the base
for as long as specified in any agreements pursuant to                   investment expended in this state on projects, provided that:
§1611.A.4 below;
                                                                               a. the total base investment expended in this state,
       b. be used in the production of motion pictures or                exceeds $300,000;
other visual media productions within the state of Louisiana;
and                                                                            b. the total tax credit allowed shall not exceed
                                                                         $25,000,000;
       c. used for not less than 80 percent of the asset's
useful life.                                                                  2. if all or a portion of an infrastructure project is a
                                                                         facility which may be used for other purposes unrelated to
    4. Assurances may be secured by appropriate                          production or postproduction activities, then no tax credits
agreements, including, but not limited to the following terms            shall be earned on such multiple-use facilities until the
and conditions:                                                          production or postproduction facility is complete;
          a.   a requirement of approval prior to sale of such               3. construction of the infrastructure project shall begin
assets;                                                                  within six months of the preliminary certification;
       b. a requirement for a minimum number of years                         4. credits may not be earned until 25 percent of the
before such assets may be transferred to a different owner;              total base investment, provided for in the preliminary
       c. limitations on transferability of the tax credits for          certification of an infrastructure project, has been certified as
current or future holders;                                               expended;

        d. a reserve fund that may be re-captured by the                      5. no tax credit shall be allowed for expenditures
state; and/or                                                            made for any infrastructure project after December 31, 2008,
                                                                         unless 50 percent of the total base investment provided for in
          e.   a structured release of tax credits.                      the initial certification of the project has been expended prior
     5. Any conditions to meet the requirements of this                  to that date. The expenditures may be finally certified at a
Subsection shall be explicitly stated in the initial                     later date;
certification issued for the project.                                          a. transactions qualifying toward he 50 percent
       a. In the event an applicant fails to meet the                    expenditure requirement include, but are not limited to, an
conditions, as specified in the certification letter, any such           arm’s length transaction in which the obligation is secured


                                                                   111          Louisiana Administrative Code            December 2011
                                                     REVENUE AND TAXATION

by the subject of the transaction and the maturity date for                       b. If the investor tax credits (evidenced by a
such obligation occurs after December 31, 2008, if such                   certification letter) are transferred to the office:
transaction was executed on or before December 31, 2008.
                                                                                   i.  on and after January 1, 2007, and prior to
However, such transactions shall not qualify to earn tax
                                                                          December 31, 2008 the state shall make payment to the
credits, or otherwise be deemed to be expenditures, until
                                                                          investor at a value of 72 percent of the face-value of the
actual payments are made and the transaction meets the
                                                                          credits;
definition of expenditure provided in §1605.B above;
                                                                                  ii.    on January 1, 2009, and every second year
     6. expenditures shall be certified by the department,
                                                                          thereafter, the percent of the value of the tax credits paid by
office and division and credits are not transferable until such
                                                                          the state shall increase 2 percent until the percentage reaches
certification;
                                                                          80 percent;
     7. for purposes of allowing tax credits against state
                                                                                  iii.    for state certified productions which receive
income tax liability and transferability of the tax credits, the
                                                                          initial certification on or after July 1, 2009, the state shall
tax credits shall be deemed earned at the time expenditures
                                                                          make payment to the investor at a value of 85 percent of the
are made, provided that all requirements of this Subsection
                                                                          face-value of the credits.
have been met and after the tax credits have been certified;
                                                                               3. Allocate. If the investor tax credits are earned by, or
     8. the department, office and division may require the
                                                                          allocated or transferred to, an entity not taxed as a
tax credits to be taken and/or transferred in the period in
                                                                          corporation, the entity may allocate the credit by issuing
which the credit is earned or may structure the tax credit in
                                                                          ownership interests to any individuals or other entities on
the initial certification of the project to provide that only a
                                                                          such terms that are agreed to by the relevant parties and in
portion of the tax credit be taken over the course of two or
                                                                          accordance with the terms of the allocating entity’s operating
more tax years;
                                                                          agreement or partnership agreement. These terms may result
     9. the credit shall be allowed against the income tax                in the allocation of up to 100 percent of the investor tax
for the taxable period in which the credit is earned or for the           credits to any individual or entity regardless of the federal
taxable period in which initial certification authorizes the              tax treatment of the allocation:
credit to be taken.
                                                                                   a.     the allocating entity:
  AUTHORITY NOTE: Promulgated in accordance with
                                                                                   i.   may be treated as a partnership for federal or
R.S. 47:1125.1.
                                                                          state tax purposes; or
  HISTORICAL NOTE: Promulgated by the Department
of Economic Development, Office of Business                                       ii.    may be treated as an entity that is disregarded
Development,     Office    of    Entertainment Industry                   as an entity separate from its owners for federal or state tax
Development and the Office of the Governor, Division of                   purposes, and in which case, each holder may agree that it
Administration, LR 36:56 (January 2010).                                  will not treat the allocating entity as a partnership or itself as
§1613. Application of the Tax Credit                                      a partner or the ownership interest in the allocating entity as
                                                                          a partnership interest for federal tax or state tax purposes.
   A. Prior to claiming a tax credit on any tax return, or
transferring any tax credit, a person must apply for and                      4.        Claim. Tax credits may be claimed as follows:
obtain a final certification. The investor tax credit may be                     a. an owner of tax credits may apply the credits to
earned, transferred, allocated, and claimed as follows.                   offset an outstanding Louisiana income tax liability for any
    1. Earn. Individuals or entities may earn investor tax                tax year beginning in the year that the investor initially
credits pursuant to R.S. 47:6007(C)(1).                                   earned the tax credit or in any year thereafter within the 10
                                                                          year carry forward period;
       a. Once tax credits are earned by an individual or
entity, such individual or entity and any subsequent                             b. in the case of tax credits owned (held) by an
transferee, may transfer or allocate the investor tax credits.            entity not taxed as a corporation, the credits shall be deemed
                                                                          to flow through or be allocated to partners or members at the
     2. Transfer. Any motion picture investor tax credits                 end of the tax year in which the entity acquired the credits
not previously claimed by any taxpayer against its income                 unless the partnership or membership agreement provides
tax may be transferred or sold to another Louisiana taxpayer              otherwise;
or to the office, pursuant to R.S. 47:6007(C)(4).
                                                                                  c. any individual or entity shall be allowed to claim
       a. A single transfer or sale may involve one or more               the investor tax credit against its Louisiana income tax
transferees. Transferors and transferees shall submit to the              liability:
Office and to the Department of Revenue in writing, a
notification of any transfer or sale of tax credits within thirty                 i.   whether or not any such individual is a
days after the transfer or sale of such credits and shall                 Louisiana resident; and
include a processing fee of two hundred dollars per                              ii.    whether or not any such entity is domiciled in
transferee.                                                               Louisiana, organized under Louisiana law, or headquartered
                                                                          in Louisiana;

Louisiana Administrative Code                  December 2011        112
                                                            Title 61, Part I

       d. an investor tax credit, in the hands of the                   return for the year in which the taxpayer is claiming the
taxpayer that earned the credit or received it by flow-                 investor tax credits, an original certificate of ownership
through, cannot be used to eliminate any penalties and                  issued by the office or the transfer notice pursuant to this
interest on overdue income taxes from prior tax years:                  rule, evidencing the dollar amount of the investor tax credits
                                                                        being claimed.
        i.    however, an investor tax credit that is
purchased is treated as property and can be applied to                      6. The failure of the office to timely issue a certificate
penalties and interest on overdue income taxes from prior               of ownership in accordance with this rule shall not:
tax years pursuant to R.S. 47:1675(H)(1)(c):
                                                                               a. void or otherwise affect, in any way, the legality
           (a) penalties and interest will continue to accrue           or validity of any transfer of investor tax credits;
until the taxes on which such penalties and interest are
                                                                               b. prohibit any Louisiana taxpayer from claiming
accruing are paid;
                                                                        investor tax credits against its Louisiana income tax liability,
           (b) the date of payment is the date that the                 if the investor tax credits are otherwise transferred or
Louisiana Department of Revenue receives a return from a                claimed in accordance with R.S. 47: 6007 and these rules; or
taxpayer on which the investor tax credits are claimed.
                                                                               c. result in any recapture, forfeiture or other
  B. If the investor tax credits (evidenced by a tax credit             disallowance of investor tax credits under R.S. 47:6007(E)
certification letter) are transferred or allocated as provided          or (F) or otherwise.
herein.
                                                                          AUTHORITY NOTE: Promulgated in accordance with
     1. The transferor shall submit to the office the original          R.S. 47:6007.
certificate of ownership, evidencing the investor tax credits             HISTORICAL NOTE: Promulgated by the Department
being transferred or allocated, as required by R.S.                     of Economic Development, Office of Business
47:6007(C)(5).                                                          Development,     Office  of    Entertainment   Industry
                                                                        Development and the Office of the Governor, Division of
     2. After receipt, the office may issue to each
                                                                        Administration, LR 36:57 (January 2010), amended by the
transferee or allocatee, a certificate of ownership signed by           Department of Economic Development, Office of the Secretary,
the director reflecting:                                                Office of Business Development, and the Louisiana Economic
       a.   such transferee’s or allocatee's name;                      Development Corporation, LR 37:515 (February 2011).

       b. the dollar amount of investor tax credits                        Subchapter B. Louisiana Filmmakers
transferred or allocated;                                                         Grant Fund Program
      c. the calendar year in which the investor tax credits            §1615. Preamble and Purpose
were originally earned;
                                                                           A. The Louisiana Filmmakers Grant Fund Program is
       d. the state-certified infrastructure project or the             vital to support the state’s entertainment industry and the
state-certified production with respect to which such investor          state’s long-term goals in its master plan for economic
earned the investor tax credits; and                                    development for the State of Louisiana.
        e. the identifying number assigned to such state-                 B. The purpose of this Chapter is to implement the
certified infrastructure project or state-certified production.         Louisiana Filmmaker Grants Program as established by R.S.
     3. If the certificate of ownership submitted evidences             47:6007.
more investor tax credits than actually transferred or                    AUTHORITY NOTE: Promulgated in accordance with R.S.
allocated, then the office may issue an additional certificate          47:6007.
of ownership, reflecting any remaining investor tax credit                HISTORICAL NOTE: Promulgated by the Department of
balance.                                                                Economic Development, Office of Business Development and
                                                                        Office of Entertainment Industry Development, LR 37:515
     4. Any person or entity engaged in the business of                 (February 2011).
buying and reselling tax credits may elect to maintain its              §1616. Definitions
certificate of ownership on file with the office, such that it
need not surrender, and have reissued, its certificate of                 Applicant—the entity or natural person requesting a grant
ownership each time it sells a tax credit.                              award from LED.
        a. In such cases, the office may issue comporting                 Award—funding approved under this program for eligible
certificates of ownership to transferees or allocates,                  activities and expenditures.
designated by the transferor or allocator in writing, until
                                                                          Award Agreement—that agreement or contract hereinafter
such time as the tax credits represented in the original
                                                                        referred to between the applicant, and LED, through which,
certificate have been exhausted.
                                                                        by cooperative endeavor agreement or otherwise, the parties
    5. Any taxpayer claiming investor tax credits against               set forth the amount of the award, the terms, conditions and
its Louisiana income tax liability shall submit to the                  performance objectives of the award provided pursuant to
Department of Revenue, with its Louisiana income tax                    these rules.


                                                                  113          Louisiana Administrative Code            December 2011
                                                   REVENUE AND TAXATION

   Contract—a legally enforceable award agreement                       B. An applicant must be the principal creative author of
between LED and the successful applicant governing the                the production and hold complete artistic, creative and
terms and the conditions of the award.                                budgetary control.
  LED—Louisiana Department of Economic Development.                     C. Eligible project formats, may include, but not be
                                                                      limited to: documentary, feature length film, TV pilot, TV
  Office—Office of Entertainment Industry Development
                                                                      series, webisodes, animation, experimental shorts.
  Program—the        Louisiana   Filmmakers     Grant   Fund            D. Ineligible project formats, may include, but not be
Program.                                                              limited to: reality shows, industrial, commercial, tourism,
  AUTHORITY NOTE: Promulgated in accordance with R.S.                 political campaigns or promotional pieces.
47:6007.
  HISTORICAL NOTE: Promulgated by the Department of                     E. 100 percent of the project must be shot in Louisiana.
Economic Development, Office of Business Development and                F.        100 percent of the project must post in Louisiana.
Office of Entertainment Industry Development, LR 37:515
(February 2011).                                                        G. 100 percent of the crew must be Louisiana residents.
§1617. General Principles                                               H. 75 percent of the talent must be Louisiana residents.
  A. The following general principles will direct the                   I. Grants will be awarded on a one time basis only and
administration of the program.                                        previous award winners will not be allowed to reapply.
    1. LED shall serve as the administrators for this                    J. An applicant shall be considered ineligible for this
Program.                                                              program if it has pending or outstanding claims or liabilities
     2. LED, through the office, in conjunction with a                relative to its failure or inability to pay its obligations;
panel of entertainment industry experts, shall serve as the           including state or federal taxes, or bankruptcy proceedings,
review panel.                                                         or if it has pending, at the federal, state, or local level, any
                                                                      proceeding concerning denial or revocation of a necessary
    3. Awards are not to be construed as an entitlement               license or permit, or if the company has a previous contract
and such awards shall be subject to the discretion of LED.            with LED in which the company is in default and/or is not in
    4. LED shall negotiate with each applicant seeking an             compliance.
award, based on the individual merits of each project.                  K. Applicants must be in full compliance with all state
    5. Contracts for awards shall contain “clawback” (or              and federal laws.
refund) provisions to protect the state in the event of a               AUTHORITY NOTE: Promulgated in accordance with R.S.
default.                                                              47:6007.
                                                                        HISTORICAL NOTE: Promulgated by the Department of
    6. Award funds shall be utilized for the approved                 Economic Development, Office of Business Development and
project only.                                                         Office of Entertainment Industry Development, LR 37:516
  AUTHORITY NOTE: Promulgated in accordance with R.S.                 (February 2011).
47:6007.                                                              §1623. Criteria
  HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Business Development and                A. LED will consider various factors when determining
Office of Entertainment Industry Development, LR 37:516               which awards will be funded. Among the factors which may
(February 2011).                                                      be taken into account in the review of the award requests are
§1619. Program Descriptions                                           the following:

   A. This program is to be used to support Louisiana’s                      1.     availability of funding;
independent filmmakers, domiciled in Louisiana, who make                  2. recommendation of the office and an entertainment
a film in Louisiana, the total cost of which shall not exceed         industry expert panel review committee;
three hundred thousand dollars. The maximum amount of
any grant shall not exceed the lesser of 50 percent of the                   3.     artistic quality;
total cost of the film or $100,000.                                          4.     applicant’s demonstrated ability and creativity;
  AUTHORITY NOTE: Promulgated in accordance with R.S.                     5. managerial and fiscal ability of the applicant to
47:6007.
                                                                      carry out the proposed project;
  HISTORICAL NOTE: Promulgated by the Department of
Economic Development, Office of Business Development and                  6. nature and extent of other revenue, in-kind goods
Office of Entertainment Industry Development, LR 37:516               and services, and/or public or private support; and
(February 2011).
§1621. Eligibility                                                           7.     portrayal of Louisiana culture in a positive light.
                                                                        AUTHORITY NOTE: Promulgated in accordance with R.S.
  A. An applicant must be a Louisiana resident, with proof            47:6007.
of at least 3 years residency.                                          HISTORICAL NOTE: Promulgated by the Department of
                                                                      Economic Development, Office of Business Development and

Louisiana Administrative Code                 December 2011     114
                                                           Title 61, Part I

Office of Entertainment Industry Development, LR 37:516                performance objectives expected and the compliance
(February 2011).                                                       requirements to be enforced in exchange for state assistance,
§1625. Application Procedure                                           which will include, but not be limited to:
  A. An applicant may apply for this program by                               a. award amounts may vary at the discretion of
submitting the following information to the office:                    LED and shall not exceed the lesser of 50 percent of the total
                                                                       cost of the film or $100,000;
    1. a written application, including but not limited to, a
detailed description of the proposed project, a preliminary                   b. applicants and awardees are not allowed to use
budget and a grant request; and                                        monies appropriated by the state of Louisiana as an eligible
                                                                       cost for reimbursement;
     2. supporting information as requested by the office,
including but not limited to examples of prior or proposed                    c. applicant shall agree to display LED’s Louisiana
work.                                                                  Entertainment logo in the opening credits of the project;
  B. The office shall review the application and supporting                   d. applicant shall agree to grant LED rights to
information, and if it is found to be incomplete or if further         screen or use the project for promoting Louisiana’s
information is needed shall contact the applicant and request          Entertainment industry; and
such information.                                                             e. applicant shall agree to provide a service to LED
  AUTHORITY NOTE: Promulgated in accordance with R.S.                  in return for state funding. The service could take many
47:6007.                                                               forms, such as free training workshops to Louisiana
  HISTORICAL NOTE: Promulgated by the Department of                    residents in a specific area of filmmaking; free lectures,
Economic Development, Office of Business Development and               seminars or demonstrations, free public screening of
Office of Entertainment Industry Development, LR 37:516                completed works, mentoring or internships.
(February 2011).
§1627. Submission and Review Procedure                                     3. LED will disburse funds to the applicant as
                                                                       provided by the Award Agreement or Contract.
   A. The office shall accept applications twice a year,
between June 1 and July 1 and December 1-January 1, each                   4. LED will oversee the progress of the approved
calendar year, and upon determination that an application              project and reimburse the applicant on the basis of the cost
meets the general principles, eligibility requirements, and            reports and supporting documentation certifying the amount
criteria for this program, the office will then make a                 expended for which reimbursement is sought. LED may
recommendation to an entertainment industry panel for                  request the applicant at any time and from time to time to
further review.                                                        submit additional or supporting information.

  B. The entertainment industry panel shall be comprised                  B. Funding
of representatives from the higher education community                      1. The Louisiana Filmmakers Grant Program offers
with curricula in film, and its members shall be identified on         financial assistance in the form of a performance-based grant
LED’s website LouisianaEntertainment.gov.                              for reimbursement of eligible project costs specified in the
  C. Each panel member shall complete an independent                   award agreement.
evaluation of each application and score them based upon a                  2. Eligible project costs may include, but not be
scoring form, to be posted on “LouisianaEntertainment.gov”.            limited to:
  D. All panelists shall meet in a closed session to discuss                  a. production costs: wages for crew and talent,
their individual evaluation findings and to form consensus             equipment rental, props, permits and fees, art department, set
scoring of all proposed projects. The panel shall then                 construction wardrobe; and
recommend the highest scoring project(s) to be issued an
award by LED.                                                                 b. post production costs: special effects, sound,
                                                                       scoring, video.
  AUTHORITY NOTE: Promulgated in accordance with R.S.
47:6007.                                                                    3. Ineligible project costs for reimbursement may
  HISTORICAL NOTE: Promulgated by the Department of                    include, but not be limited to:
Economic Development, Office of Business Development and
Office of Entertainment Industry Development, LR 37:516                        a. purchase of equipment or creation of new
(February 2011).                                                       facilities;
§1629. General Award Provisions                                                 b.   operating expenses of privately owned facilities;
  A. Award Agreement                                                   and

    1. Awards will be issued twice a year, by September 1                       c.   hospitality or entertainment costs.
and March 1 of each calendar year.                                        C. Conditions for Disbursement of Funds
    2. A written award agreement, contract or cooperative                   1. Funds will not be available for reimbursement to
endeavor agreement will be executed between LED and the                the applicant until an award agreement or contract between
successful applicant. The contract will specify the                    the applicant and LED has been finalized and executed.

                                                                 115          Louisiana Administrative Code                December 2011
                                                   REVENUE AND TAXATION

     2. Funds will be available on a reimbursement basis                   C. These rules implement the Louisiana Sound
following submission of required documentation to LED by                Recording Investor Tax Credit pursuant to R.S. 47:6023.
the applicant and will be based upon performance objectives             This credit was created by Act 485 (H.B. 631), Laws 2005
as provided in the contract.                                            and amended by Act 368 (S.B. 70), Laws 2007 of Reg. Sess.,
                                                                        effective July 1, 2007.
  D. Compliance Requirements
                                                                           D. These provisions are in addition to and shall not limit
    1. In order to be paid or reimbursed as provided by the
                                                                        the authority of the Secretary of the Department of Revenue
contract, the applicant shall be required to complete and
                                                                        to assess or to collect under any other provision of law.
submit to LED cost reports certifying the amount expended
along with progress reports describing the applicant’s                    AUTHORITY NOTE: Promulgated in accordance with R.S.
progress toward the performance objectives specified in its             47:6023.
contract with LED.                                                        HISTORICAL NOTE: Promulgated by the Department of
                                                                        Economic Development, Office of Business Development, and the
     2. In the event an applicant fails to meet its                     Department of Revenue, LR 34:1347 (July 2008), amended by the
performance objectives as specified in its contract, LED                Department of Economic Development, Office of Business
shall retain the right to withhold award funds, modify the              Development, Office of Entertainment Industry Development, LR
terms and conditions of the award, and/or to reclaim                    36:304 (February 2010).
disbursed funds from the applicant in an amount                         §1633. Definitions
commensurate with the scope of the unmet performance                      A. The following terms shall have the meanings
objectives and the foregone benefits to the state, as                   provided herein, unless the context clearly indicates
determined by LED.                                                      otherwise.
     3. In the event an applicant knowingly files a false                  Base Investment―shall mean the actual investment
statement in its application or in a progress report, the               made and expended in the state by:
applicant may be guilty of the offense of filing false public
records, and may be subject to the penalty provided for in                     a. a state-certified production as production
R.S. 14:133.                                                            expenditures incurred in this state that are directly used in
                                                                        state-certified production or productions;
     4. LED shall retain the right, for itself and for the
legislative auditor, to require and/or conduct financial and                    b. a person or other legal entity in the development
performance audits of a project, including all relevant                 of a state-certified infrastructure project. Infrastructure
records and documents of the company.                                   Expenditures shall include, but are not limited to,
                                                                        expenditures for sound recording infrastructure project
  AUTHORITY NOTE: Promulgated in accordance with R.S.
                                                                        development, sound recording production spaces, sound
47:6007.
  HISTORICAL NOTE: Promulgated by the Department of
                                                                        production equipment, facilities, equipment for sound
Economic Development, Office of Business Development and                recording companies domiciled within Louisiana, sound
Office of Entertainment Industry Development, LR 37:517                 processing and recording equipment, land acquisition and
(February 2011).                                                        closing costs, construction costs, design and professional
                                                                        consulting fees associated with the state-certified
      Subchapter C. Louisiana Sound                                     infrastructure project, furniture, fixtures, percussion, pianos,
       Recording Investor Tax Credit                                    keyboards, organs, musical and amplification equipment,
                                                                        and financing costs which shall remain permanently located
                 Program                                                within Louisiana for the useful life of the object.
§1631. Purpose and Description of Louisiana Sound                       Infrastructure Expenditures shall not include indirect costs,
       Recording Investor Tax Credit Program                            any amounts that are later reimbursed by a third party, any
                                                                        costs related to the allocation of tax credits, or any amounts
  A. The purpose of this program is to encourage                        that are paid to persons or entities as a result of their
development in Louisiana of a strong capital and                        participation in profits from the exploitation of the State-
infrastructure base for sound recording productions in order            certified Infrastructure Project.
to achieve an independent, self-supporting sound recording
industry, and to encourage investments in multiple state-                  Department―the Louisiana Department of Economic
certified sound recording production projects and                       Development, or its successor.
infrastructure.                                                              Expended in the State―an expenditure to acquire
  B. Approvals and certifications as to whether a project               property from a source within the state which is subject to
qualifies as a state-certified production as required for Sound         state sales or use tax, or an expenditure as compensation for
Recording Investor Tax Credits are not to be considered as              services performed within the state which is subject to state
entitlements for sound recording production companies, and              income tax.
the Louisiana Department of Economic Development shall                      Holder―the holder of a partnership interest,
have the discretion to determine whether or not each                    membership interest, or other similar ownership interest on
particular sound recording or infrastructure project, meets             any entity not taxed as a corporation.
the criteria for such qualification as provided herein.


Louisiana Administrative Code                 December 2011       116
                                                           Title 61, Part I

    Investor―any individual or entity that makes an                         2. For state-certified productions certified on and after
investment in a state-certified production or infrastructure           July 1, 2007, and state-certified infrastructure projects which
project.                                                               have applied on or before August 1, 2009, each investor
                                                                       shall be allowed a tax credit of twenty-five percent of the
   Secretary―Secretary of the Louisiana Department of
                                                                       base investment made by the investor in excess of $15,000.
Economic Development.
                                                                              a, Once the $15,000 minimum investment threshold
    Series―more than one state-certified production
                                                                       is met, each investor shall be allowed a tax credit for all
produced in a 12 month period, by or on behalf of the sound
                                                                       investments made up to and in excess of $15,000.
recording company or an affiliate grouped together in such a
way that the group meets the minimum in-state spend of                      3. An application for initial certification of a project
$15,000.                                                               shall be submitted to the Louisiana Department of Economic
                                                                       Development prior to the granting of the credit, and the
     Sound Recording―a recording of music, poetry, or
                                                                       granting of the credits under this Rule shall be on a first-
spoken-word performance made in Louisiana, in whole or in
                                                                       come, first-served basis based on when the proper cost
part. The term sound recording shall not include the audio
                                                                       reports as defined here under RS 47:6023, are submitted to
portions of dialogue or words spoken and recorded as part of
                                                                       DED for certification of tax credits, which shall be
television news coverage or athletic events.
                                                                       determined by the date of a signed receipt via certified or
     Sound Recording Production Company―a company                      registered mail, courier, hand or other delivery, or the date
engaged in the business of producing sound recordings as               on a proof of transmission via facsimile and/or by the DED
defined in this Section. Sound recording production                    stamped and staff initialed date. The Secretary of the
company shall not mean or include any person or company,               Department of Economic development shall determine
or any company owned, affiliated, or controlled, in whole or           annually the annual aggregate maximum. If the total amount
in part, by any company or person, which is in default on a            of credits earned for any particular year exceeds the
loan made by the state or a loan guaranteed by the state, nor          aggregate amount of tax credits allowed for that year, the
which has ever declared bankruptcy under which an                      excess will be treated as having been earned on the first day
obligation of the company or person to pay or repay public             of the subsequent year.
funds or monies was discharged as a part of such
                                                                              a. Applications for a series of productions shall
bankruptcy.
                                                                       provide the titles, budgets and a brief description for each
     State-Certified Musical Recording Infrastructure                  production in the series. The series of productions, as a
Project―a sound recording capital infrastructure project and           combined group, must at least achieve, and may exceed the
base investment related to such project that are approved by           minimum investment. If one single project may, on its own,
the Louisiana Department of Economic Development.                      exceed the $15,000 minimum threshold, it must make
                                                                       separate application.
    State-Certified  Production―a     sound    recording
production or a series of productions occurring over the                   4. Individuals or entities may earn sound recording
course of a 12-month period, and costs related to such                 investor tax credits pursuant to R.S. 47:6023(C).
production or productions that are approved by the
                                                                           5. Any individual or entity shall be allowed to claim
Louisiana Department of Economic Development.
                                                                       the sound recording investor tax credit authorized by R.S.
  AUTHORITY NOTE: Promulgated in accordance with R.S.                  47:6023:
47:6023.
  HISTORICAL NOTE: Promulgated by the Department of                           a. whether or not any such individual is a Louisiana
Economic Development, Office of Business Development, and the          resident; and
Department of Revenue, LR 34:1347 (July 2008), amended by the
Department of Economic Development, Office of Business
                                                                             b. whether or not any such entity is domiciled in
Development, Office of Entertainment Industry Development, LR          Louisiana, organized under Louisiana law, or headquartered
36:304 (February 2010).                                                in Louisiana.
§1635. Rules of Application                                                 6. Any applicant applying for the credit shall be
                                                                       required to reimburse the department for any audits required
  A. The sound recording investor tax credit authorized by
                                                                       in relation to granting the credit.
R.S. 47:6023(C) may be earned and claimed as follows.
                                                                         AUTHORITY NOTE: Promulgated in accordance with R.S.
     1. Until January 1, 2015, there is authorized a credit            47:6023.
against the state income tax for investments made in state-              HISTORICAL NOTE: Promulgated by the Department of
certified productions and state-certified sound recording              Economic Development, Office of Business Development, and the
infrastructure projects, which credit will be earned by                Department of Revenue, LR 34:1348 (July 2008), amended by the
investors at the time expenditures are certified by the                Department of Economic Development, Office of Business
Louisiana Department of Economic Development according                 Development, Office of Entertainment Industry Development, LR
to the total base investment certified for the sound recording         36:305 (February 2010).
production company per calendar year. No credit shall be               §1637. Certification
allowed for any expenditures for which a credit was granted
                                                                          A. Initial Certification of State-Certified Productions
under R.S. 47:6007.

                                                                 117          Louisiana Administrative Code           December 2011
                                                 REVENUE AND TAXATION

     1. To obtain the approval of the department for a                       vi.    a statement that the production will qualify as a
"state-certified production" as required by R.S.                     state-certified production; and
47:6023(B)(5) and (6), the sound recording production
                                                                           vii.      estimated start and completion dates;
company that will produce the sound recording production
must submit a written request to the department for approval                m. for "state-certified sound recording infrastructure
of the production as a "state-certified musical recording            projects" the application shall also include:
infrastructure project" or as a "state-certified production"
                                                                                i.   a detailed description of the infrastructure
and setting forth the following facts, when applicable:
                                                                     project;
      a. working title of the sound recording production
for which approval is requested;                                            ii.      a preliminary budget;

       b.    name of the requesting production company;                      iii.   a statement that the project meets the definition
                                                                     of a state-certified infrastructure project; and
     c. telephone number of requesting production
                                                                            iv.      estimated start and completion dates;
company;
                                                                              v.   a business plan for startup sound recording
      d. name and telephone number of the requesting
                                                                     infrastructure companies.
production company's contact person;
      e. approximate beginning and ending date of                         2. The department shall submit its initial certification
production in Louisiana;                                             of a project as an "initial state-certified production" or an
                                                                     "initial state-certified musical recording infrastructure
     f. Louisiana office address of requesting production            project" to investors and to the Secretary of the Department
company (if available);                                              of Revenue, containing a unique identifying number. The
                                                                     department shall issue their written approval of a project as a
     g. telephone number of requesting production
                                                                     "state-certified musical recording infrastructure project" or
company's Louisiana office address (if available);
                                                                     of a sound recording production as a "state-certified
      h. estimated total production-related costs of the             production" within 90 business days after receiving a request
sound recording production for which approval is requested;          with respect to such production that complies with
                                                                     Paragraph 1 of this Section. In the alternative, if the
       i. estimated total amount of production-related
                                                                     department determines that a request for approval of a
costs to be expended in Louisiana in connection with the
                                                                     project as a "state-certified musical recording infrastructure
sound recording production for which approval is requested;
                                                                     project" or of a sound recording production as an "initial
      j. estimated total payroll to be paid by the                   state-certified production" received from a production
requesting production company to Louisiana residents                 company is not in compliance with Paragraph 1 of this
employed by the requesting production company in                     Section, then within 45 business days after receiving such
connection with the production for which approval is                 request, the department shall request in writing from the
requested.;                                                          requesting production company any information necessary
                                                                     in their determination for such request to comply with
      k. facts sufficient to determine each of the                   Paragraph 1 of this Section. Upon receiving all of the
following:
                                                                     requested additional information in writing from the
       i.   that the requesting production company is a              production company, and if the department determine that
sound recording production company as defined by R.S.                the request for approval with respect to such project or
47:6023(B)(4);                                                       production complies with Paragraph 1 of this Section, the
                                                                     department shall issue to the requesting production company
        l. for "state-certified productions" the application         their written approval of the project as a "state-certified
shall also include:                                                  musical recording infrastructure project" or of a sound
        i.     the distribution plan;                                recording production as a "state-certified production."
       ii.  a preliminary budget including estimated                      3. The approval of a project as an "initial state-
Louisiana     payroll     and     estimated     base                 certified musical recording infrastructure project" or of a
investment;                                                          sound recording production as an "initial state-certified
                                                                     production" issued by the department pursuant to the above
      iii.     a description of the type of sound to be              Paragraph 2 of this Section will include the following, as
recorded;                                                            appropriate.
       iv.   a list of the principal creative elements                       a. For initial state-certified musical recording
including performing artist(s) and producer;                         infrastructure projects:
       v.    the name and address of the recording studio or              "Based solely on our examination of the factual
other location where the recording production will take                   representations set forth in your request for state certification
place;                                                                    of ["Name of Project"] dated [Date of Request] attached
                                                                          hereto as Exhibit A, the Department of Economic
                                                                          Development does hereby certify that ["Name of the Project"]


Louisiana Administrative Code               December 2011      118
                                                                         Title 61, Part I

     qualifies as of [Date] as a initial state-certified musical                     request, the calendar year in which the sound recording
     recording infrastructure project as such term is defined in
                                                                                     investor tax credits were earned by the investor, the state-
     Louisiana Revised Statutes 47:6023 B(6).
     ["Identifying Number"] is hereby assigned to ["Name of                          certified sound recording infrastructure project or the state-
     Project"] and such number shall constitute such project’s                       certified production with respect to which the investor
     identifying number as contemplated by R.S. 47: 6023                             earned the sound recording investor tax credits, and the
     E(2)(c)."
                                                                                     identifying number assigned to such state-certified sound
      b. For        initial    state-certified       sound      recording            recording infrastructure project or state-certified production.
productions:
                                                                                          3. The tax credits when issued and upon receipt shall
     "Based solely on our examination of the factual
     representations set forth in your request for state certification               not be transferred to any third party and will be held valid
     of ["Name of Production"] dated [Date of Request] attached                      only to the party which was certified by the Department of
     hereto as Exhibit A, the undersigned does hereby certify that                   Economic Development. After certification, the Louisiana
     ["Name of the Production"] qualifies as of [Date] as a initial
                                                                                     Department of Economic Development shall submit the tax
     sound recording state-certified production as such term is
     defined in Louisiana Revised Statutes 47:6023 B(5).                             credit certification letter to the Department of Revenue on
     ["Identifying Number"] is hereby assigned to ["Name of                          behalf of the investor who earned the sound recording tax
     Production"] and such number shall constitute such                              credits. The Department of Revenue may require the
     production’s identifying number as contemplated by R.S. 47:
                                                                                     investor to submit additional information as may be
     6023 E(2)(c)."
  B. Certification of Sound Recording Investor Tax Credits                           necessary to administer the provisions of this Section. Upon
                                                                                     receipt of the tax credit certification letter and any necessary
     1. Prior to any certification of the state-certified                            additional information, the secretary of the Department of
production or infrastructure project, the sound recording                            Revenue shall make payment to the investor in the amount
production company, in the case of an infrastructure project,                        to which he is entitled from the current collections of the
shall submit to the department a cost report of production or                        taxes collected pursuant to Chapter 1 of Subtitle II of this
project expenditures to be prepared and audited by an                                Title, as amended.
independent Louisiana certified public accountant. The
department shall review such expenditures and shall issue a                               4. Once certification of a project has been granted
tax credit certification letter to the investors and the                             under the criteria established within this provision and
Louisiana Department of Revenue indicating the amount of                             pursuant to 47:6023, the granting of such credit will be
tax credits certified for the state-certified production or state-                   based upon a first come, first serve basis of the approved
certified infrastructure project. The certified public                               cost report or audit and shall be set for a maximum
accountant must follow the standards as set out in the CPA                           aggregate amount not to exceed $3 million. For purposes of
Auditing Instructions, which are provided by the Department                          this Section the applicant will be considered the investor.
of Economic Development. This must also be accompanied                                    5. If the total amount of qualifying credits in any
by the CPA Certification Form, which is provided by the                              particular year exceeds the aggregate amount of tax credits
Department of Economic Development.                                                  allowed for that year the excess credits will be treated as
       a. Incorrect Reporting. If an applicant submits a                             having been certified for the first day of the subsequent year.
cost report required by the provisions of this Chapter and the                            6. The failure of the department to issue a letter of
report made and filed contains material misstatements,                               certification in accordance with this Subpart shall not:
including but not limited to misrepresentation in or
intentional omission from the cost report of events,                                        a. void or otherwise affect, in any way, the legality
transactions, or other significant information there may be                          or validity of any allocation of sound recording investor tax
cause for an additional audit.                                                       credits;

       b. Related Party Transactions. If an audit contains                                  b. prohibit any Louisiana taxpayer from claiming
related party transactions in excess of 20 percent of the base                       sound recording investor tax credits against its Louisiana
investment there may be cause for an additional audit.                               income tax liability if the sound recording investor tax
                                                                                     credits are otherwise allocated or claimed in accordance with
        c. Reimbursement of Audit Costs. The department                              R.S. 47:6023(C) and this Subpart; or
may undertake additional audit at the applicant’s expense, to
be performed by a state certified public accountant also                                    c. result in any recapture, forfeiture or other
certified in financial forensics or also certified as a fraud                        disallowance of sound recording investor tax credits under
examiner. Audit fees will be assessed at the department’s                            R.S. 47:6023(G) or otherwise.
contracted fee, with a minimum of $2,000 and a maximum                                 AUTHORITY NOTE: Promulgated in accordance with R.S.
of $15,000 fee per audit.                                                            47:6023.
                                                                                       HISTORICAL NOTE: Promulgated by the Department of
     2. After receiving a written request from an investor                           Economic Development, Office of Business Development, and the
and after the meeting of all criteria, the department shall                          Department of Revenue, LR 34:1348 (July 2008), amended by the
issue a letter of certification to such investor signed by the                       Department of Economic Development, Office of Business
secretary reflecting the investor's name, the dollar amount of                       Development, Office of Entertainment Industry Development, LR
sound recording investor tax credits earned by the investor                          36:305 (February 2010), LR 37:310 (January 2011).
pursuant to R.S. 47:6023(C) through the date of such


                                                                              119           Louisiana Administrative Code            December 2011
                                                   REVENUE AND TAXATION

§1639. Credits                                                         Entertainment Industry Development, LR 35:632 (April 2009),
                                                                       amended LR 36:1981 (September 2010).
  A. Application of the Sound Recording Investor Tax
                                                                       §1663. General Description
Credits
                                                                         A. The program offers a tax credit for the producers of
     1. The sound recording investor tax credit can be used
                                                                       digital interactive media projects, which submitted
to offset taxes, penalties and interest.
                                                                       applications prior to January 1, 2009 and for the producers
  B. Recapture of Credits                                              of digital interactive media products and platform projects
                                                                       which submitted applications on or after July 1, 2009.
    1. If the Department of Economic Development and
the Department of Revenue find that funds for which an                   B. Tax credits are earned per calendar year at the time
investor received credits according to this program are not            funds are expended in Louisiana on a state certified
invested in and expended with respect to a state-certified             production.
production within 24 months of the date that such credits are
                                                                         C. Tax credits shall never exceed the total base
earned, then the investor's state income tax for such taxable
                                                                       investment in a state certified production.
period shall be increased by such amount necessary for the
recapture of credit provided by this program.                            D. Tax credits become transferable only after final
                                                                       certification of expenditures.
     2. Credits previously granted to a taxpayer, but later
disallowed, may be recovered by the secretary of the                     E. These rules shall become effective upon approval by
Department of Revenue through any collection remedy                    the House Committee on Ways and Means and the Senate
authorized by R.S. 47:1561 and initiated within three years            Committee on Revenue and Fiscal Affairs, in accordance
from December 31 of the year in which the 24 month                     with the Administrative Procedures Act.
investment period specified in the above Paragraph ends.
                                                                         F. Applicants may apply for more than one
     3. The only interest that may be assessed and                     entertainment tax credit program administered by the office
collected on recovered credits is interest at a rate three             and the Department of Economic Development, provided
percentage points above the rate provided in Civil Code                that:
Article 2924(B)(1), which shall be computed from the
original date of the return on which the credit was taken.                 1.   separate applications are submitted per program;

  C. Brand                                                                 2. expenditures shall only qualify for one specified
                                                                       program; and
    1. As a condition for receiving certification of tax
credits under this Section, state-certified productions may be             3. multiple applications shall not result in any
required to display the state brand or logo, or both, as               duplication of tax credits.
prescribed by the secretary of the Department of Economic                 G. A state-certified production which receives tax credits
Development.                                                           pursuant to the provisions of this Section shall not be
  AUTHORITY NOTE: Promulgated in accordance with R.S.                  eligible to receive the rebates provided for in the Quality
47:6023.                                                               Jobs Program, R.S. 51:2451 through 2461, in connection
  HISTORICAL NOTE: Promulgated by the Department of                    with the activity for which the tax credits were received.
Economic Development, Office of Business Development, and the
                                                                         AUTHORITY NOTE: Promulgated in accordance with R.S.
Department of Revenue, LR 34:1350 (July 2008), amended by the
                                                                       47:6022.
Department of Economic Development, Office of Business
                                                                         HISTORICAL NOTE: Promulgated by the Department of
Development, Office of Entertainment Industry Development, LR
                                                                       Economic Development, Office of Business Development Office of
36:307 (February 2010).
                                                                       Entertainment Industry Development, LR 35:632 (April 2009),
      Subchapter D. Louisiana Digital                                  amended LR 36:1981 (September 2010).

                Media Act                                              §1665. Definitions
                                                                         A. Terms not otherwise defined in this Chapter shall
§1661. Purpose
                                                                       have the same meaning given to them in R.S. 47:6022,
  A. The purpose of this Chapter is to administer the                  unless the context clearly requires otherwise.
Louisiana Digital Media Act as established by R.S. 47:6022.
                                                                         B. In this Chapter, the following terms shall have the
  B. The purpose of this program is to encourage the                   meanings provided herein, unless the context clearly
development in Louisiana of a strong capital base for the              indicates otherwise.
production of digital interactive media products and
                                                                           3D Geometry―electronic media representations, three
platforms in order to achieve a more independent, self-
                                                                       dimensional representations of geometric data for the
supporting industry.
                                                                       purposes of rendering 2D image and performing
  AUTHORITY NOTE: Promulgated in accordance with R.S.                  calculations.
47:6022.
  HISTORICAL NOTE: Promulgated by the Department of                        Animated Images―electronic media representation of
Economic Development, Office of Business Development Office of         images that comprise a series of chronological fixed images.


Louisiana Administrative Code                December 2011       120
                                                           Title 61, Part I

     Base Investment―the actual funds expended in                               iii.     interactive educational or training products;
Louisiana by a state-certified production as production-
                                                                                iv.      internet sites designed and developed as social
related costs for design or development of digital interactive
                                                                       media;
media, including costs for payroll and component parts.
                                                                                v.  software applications that provide connectivity;
     Component Parts―all elements that are integral to the
                                                                       and communications between mobile devices and digital
functioning or development of such products and platforms.
                                                                       interactive media web platforms; and
Some examples may be, but are not limited to; software,
computer code, image files, music files, audio files, scripts                 vi.   technology designed to stream live or pre-
and plays, concept mock-ups, software tools, and testing               recorded video content over the internet to large
procedures. Shall also include, but not be limited to:                 simultaneous audiences;
computer servers, workstations, server racks, hard drives,
                                                                                e.     digital interactive media shall not include:
optical drives, monitors, keyboards, integrated video and
audio equipment, networking routers, switches, network                        i.    software development primarily designed and
cabling, and any other computer-related hardware necessary             developed for institutional, private or internal purposes;
to create or operate a digital interactive media product or
platform.                                                                     ii.   largely static internet sites designed to provide
                                                                       information about a person, business, or firm; or
    Department―Department of Economic Development.
                                                                             iii.   products regulated under the Louisiana Gaming
     Digital Interactive Media―means products or platforms             Control Law.
that are:
                                                                             Digital Interactive Media Company―an entity
       a. intended for commercial production, use or                   organized under the laws of the state of Louisiana and
distribution;                                                          engaged in the business of producing digital interactive
                                                                       media as defined in this Section. Digital interactive media
        b. contain at least two of the following types of
                                                                       company shall not mean or include any company owned,
data: text, sound, fixed images, video, or 3D geometry; and
                                                                       affiliated, or controlled, in whole or in part, by any company
      c. that      have   all   of   the    following   three          or person which is in default on a loan made by the state or a
characteristics:                                                       loan guaranteed by the state, nor with any company or
                                                                       person who has ever declared bankruptcy under which an
          i.  digital―a     system that        uses   discrete
                                                                       obligation of the company or person to pay or repay public
(discontinuous) values ordinarily symbolized numerically to
                                                                       funds or monies was discharged as part of such bankruptcy.
represent information for input, processing, transmission and
storage. A digital system would be contrasted with an analog               Director―the Director of Digital Media, who is the
system which uses a continuous range of values to represent            designee of the Secretary of the Department of Economic
information. The term digital includes, but is not limited to          Development.
information input, processed, transmitted and stored via the
internet;                                                                   Electronic Media―tools used to store, transmit, and
                                                                       receive digitized information that utilizes electronics or
        ii.   interactive―a digital media system for                   electromechanical energy to access the content.
inputting, processing, transmitting or storing information or
data in which users of the system are able to respond to the                Expended in Louisiana―an expenditure to lease
digital media system by inputting, transmitting, processing            immovable property located within the state; and
                                                                       expenditure as compensation for services performed in the
or storing information or data in response to the information
or data provided to them through the digital media system.             state; or an expenditure to purchase or lease tangible
Digital media system means communication delivered via                 personal property within the state where the transaction is
electronic energy where the information stored, transmitted,           subject to the state sales or lease tax provisions of Title 47 of
or received is in digital form;                                        the Revised Statutes of 1950. A transaction that is subject to
                                                                       the state sales or lease tax provisions of Title 47 of the
       iii.   media