Louisiana Revised Statutes 47:601.2 – A.(1) Beginning January 1, 2024, and each January first thereafter, if the prior fiscal year’s actual corporation income and franchise tax collections as reported in the state’s acco
Terms Used In Louisiana Revised Statutes 47:601.2
- Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- corporation: shall mean a domestic corporation or foreign corporation as provided for in this Section. See Louisiana Revised Statutes 47:601
- Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
- Fiscal year: as used in this Chapter , means an accounting period of twelve months ending on the last day of any month other than December. See Louisiana Revised Statutes 47:613
A.(1) Beginning January 1, 2024, and each January first thereafter, if the prior fiscal year‘s actual corporation income and franchise tax collections as reported in the state’s accounting system exceed the actual corporation income and franchise tax collections for the fiscal year ending June 30, 2019, as reported in the state’s accounting system, adjusted annually by the growth factor provided for in La. Const. Art. VII, § 10(C) , the corporation franchise tax rate in La. Rev. Stat. 47:601 for the tax year beginning the following January first shall be reduced as provided in Paragraph (2) of this Subsection.
(2) The reduced rate shall be calculated by multiplying the current rate by the difference between one and the percentage change in corporation income and franchise tax collections in excess of the corporation income and franchise tax collections for Fiscal Year 2018-2019 adjusted annually by the growth factor as provided in Paragraph (1) of this Subsection. A rate reduction shall be made only if both of the following conditions are met:
(a) The prior fiscal year’s actual total tax, licenses, and fees exceed the actual total tax, licenses, and fees for Fiscal Year 2018-2019, adjusted annually by the growth factor in La. Const. Art. VII, § 10(C) .
(b) The Budget Stabilization Fund balance as determined by the treasurer is at least two and one-half percent of the total state revenue receipts from the prior fiscal year.
B. The actual corporation income and franchise tax collections and actual total tax, licenses, and fees used in the calculations required by this Section shall be certified by the office of statewide reporting and accounting policy.
C.(1) “Actual total tax, licenses, and fees” means actual total tax, licenses, and fees as reported to the Revenue Estimating Conference.
(2) “Growth factor provided for in La. Const. Art. VII, § 10(C) ” means the positive growth factor that is the most recent average annual percentage rate of change of personal income for Louisiana as defined and reported by the United States Department of Commerce for the three calendar years prior to the fiscal year in which this calculation is made.
Acts 2021, No. 389, §1, see Act; Acts 2023, No. 435, §1, eff. June 28, 2023.