House Notes

Louisiana House of Representatives

2016 Second Extraordinary Legislative Session
Communications Office
Week One, June 10, 2016

At adjournment Thursday, the fourth

legislative day of the 2016 Second
Extraordinary Legislative Session, 66 House
bills and 13 Senate bills had been introduced.
A brief description of some of the bills
that generated public interest this week
follows.
CAPITAL OUTLAY
*
House Bill 2, which passed 90-8,
provides for the capital outlay budget and
program for FY 2016-17 and provides for the
funding of the capital outlays from specified
sources of monies in specified amounts.
*
House Bill 3, scheduled for floor
debate on Wednesday, June 15, provides for
the implementation of a five-year capital
improvement program, for the repeal of
certain prior bond authorizations, for new
bond authorizations and their authorization
and sale by the State Bond Commission and
for related matters.
Additionally, HB3 repeals the Act that
originated as HB No. 3 of the 2016 Regular
Session of the Legislature.

*
House Bill 52, which passed 96-0,
notwithstanding any provision of the Capital
Outlay Act of the 2016 Second Extraordinary
Session of the Legislature, requires that all
projects for which a line of credit has been
approved in Fiscal Year 2015-16, shall submit
a new capital outlay request to the office of
facility planning, which shall be received by
the office of facility planning on or before
November 1, 2016.
All new capital outlay requests
submitted by non-state projects for which a
line of credit has been approved in Fiscal Year
2015-16, shall submit a new capital outlay
request which shall include a letter of support
from a legislator in whose district the project
is located, in order to be eligible to receive
capital outlay funding for Fiscal Year
2017-2018.
The non-state project application shall
not be deemed complete unless the project has
either a fully executed cooperative endeavor
agreement or proof of the applicable local
match, if required, submitted to and received
by the division of administration, office of
facility planning and the Joint Legislative

Committee on Capital Outlay on or before

February 1, 2017.
REVENUE
*
House Bill 29, which passed 97-2,
limits the interest the state pays on refunds for
tax overpayments.
TAX
*
House Bill 53, which passed 98-0,
removes the exemption for state sales tax on
all public facilities, including the
Superdome/Arena, Zephyr Field, CajunDome,
and others and imposes a Local Public
Entertainment Facility Access Charge of 4
percent of retail sales on all public facilities
currently exempt from local sales tax.
Certain state sales tax and access
charge exemptions will apply, including all
sales, services or other transactions related to
athletic and bid-upon events at all public
facilities, sales of team merchandise store at
the facility, and facility tours. Facilities
currently subject to state sales tax due to local
taxation, such as Tiger Stadium, LSU
Assembly Center, Hammond Civic Center and
others will have no change. Trade shows
remain taxable at all public facilities.
The bill also removes the upper
population restriction on domed arena
facilities and lowers the seating requirement
for professional baseball facilities.
HB53 provides that an amount equal to
30 percent of the proceeds of the 1 percent
state sales and use tax imposed upon sales at
a state owned domed facility shall be allocated
to the Louisiana School of Math, Science, and
the Arts and the New Orleans Center for
Creative Arts.
HB53 provides for the disposition of
local access charge proceeds from domed
stadium or baseball facility sales. If the
facility is on higher education property,

proceeds will be returned to that institution.

After the requirements of the Bond
Redemption and Security Fund, and
dedications of state sales and use tax monies
to economic development, the remainder will
be allocated to the local Councils on Aging,
except in Orleans Parish, where it will be
dedicated to the early childhood care and
education network established in Orleans
Parish by BESE.
HB53 becomes effective for tax
periods beginning on or after July 1, 2016.
TAX/CORPORATE INCOME
*
House Bill 6, pending House final
passage, provides with respect to the
applicability and effectiveness of Act No. 8
from the 2016 First Extraordinary Session of
the Legislature, which established a flat rate
for purposes of calculating corporation income
tax liability, and shifts the implementation of
the single 6.5 percent tax rate back by one
year, to tax years beginning on and after
January 1, 2018.
*
House Bill 20, which passed 61-37,
provides an apportionment ratio for the
purposes of computing corporate income tax
and for the sourcing of sales.
*
House Bill 47, which passed 93-1,
clarifies that the corrective language of Act 6
of the 2016 first Extraordinary Session, which
insured the 28 percent deduction cut to net
operating loss deductions imposed by Act 123
of 2015 was implemented in the manner
consistent with fiscal anticipation of Act 123,
did not impose the 28 percent reduction to
amended returns filed on/after July 1, 2015.
TAX/INCOME TAX
*
House Bill 7, a proposed constitutional
amendment pending House final passage,
eliminates the income tax deduction for
federal income taxes paid and establishes the

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maximum tax rate as 4.75 percent.

*
House Bill 17, scheduled for floor
debate June 13, changes the rates and brackets
for calculating individual income tax liability
and eliminates certain deductions.
*
House Bill 25, which passed 67-31,
permanently reduces the amount of the
income tax credit for the Louisiana Citizens
Property Insurance Corporation Assessment to
25 percent of the assessment paid.
*
House Bill 33, scheduled to be debated
Monday, June 13, repeals the state income tax
deduction for federal income taxes paid for
purposes of calculating individual and
corporate income taxes.
*
House Bill 50, pending House final
passage, reduces the individual income tax
deduction for net capital gains.

Fund to be used as a state match source for

federal matching funds for Medicaid provider
payments.
TAX/SALES USE/EXEMPTIONS
*
House Bill 27, scheduled for floor
debate June 13, changes the exclusion for
sales of materials for further procession to an
exemption for sales of raw materials for
further processing.
*
House Bill 51, passed unanimously,
adds various exemptions and exclusions to the
list of state sales and use tax exemptions and
exclusions to be given effect beginning July 1,
2016.

TAX/INSURANCE PREMIUM
*
House Bill 24, which passed 89-12,
limits the insurance premium tax credits to no
more than 95 percent of the qualifying credit
for two premium tax years, 2016 and 2017, for
all payers except life insurance companies
with total admitted assets no greater than $15
million.
Additionally, effective for 2017 and
beyond, the bill removes certificates of
deposits and cash on deposit from the types of
investments that determine the qualification
for particular amounts of premium tax
reduction.
HB24 provides that health
maintenance organizations are not subject to
the 5 percent reduction in the credit.
*
House Bill 35, which passed 83-13,
increases taxes on all health maintenance
organizations in Louisiana, that includes
Medicaid managed care organizations, from
2.25 percent to 5.5 percent. Approximately 90
percent of the additional revenues collected as
a result of this measure are anticipated to be
deposited into the Medical Assistance Trust
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