RS 47:601     

CHAPTER 5. CORPORATION FRANCHISE TAX

§601. Imposition of tax

            A. Every domestic corporation and every foreign corporation, exercising its charter, or qualified to do business or actually doing business in this state, or owning or using any part or all of its capital, plant, or any other property in this state, subject to compliance with all other provisions of law, except as otherwise provided for in this Chapter shall pay an annual tax based on its taxable capital at the rates provided in Subsection D of this Section. Taxable capital shall be determined as provided in this Chapter. The tax levied in this Section is due and payable on any one or all of the following alternative incidents:

            (1) The qualification to carry on or do business in this state or the actual doing of business within this state in a corporate form. The term "doing business" as used herein shall mean and include each and every act, power, right, privilege, or immunity exercised or enjoyed in this state, as an incident to or by virtue of the powers and privileges acquired by the nature of such organizations, as well as, the buying, selling, or procuring of services or property.

            (2) The exercising of a corporation's charter or the continuance of its charter within this state.

            (3) The owning or using any part or all of its capital, plant, or other property in this state whether owned directly or indirectly by or through a partnership, joint venture, or any other business organization of which the domestic or foreign corporation is a related party as defined in R.S. 47:605.1.

            B. It is the purpose of this Section to require the payment of this tax to the state of Louisiana by domestic corporations for the right granted by the laws of this state to exist as such an organization, and by both domestic and foreign corporations for the enjoyment, under the protection of the laws of this state, of the powers, rights, privileges, and immunities derived by reason of the corporate form of existence and operation. The tax hereby imposed shall be in addition to all other taxes levied by any other statute.

            C.(1) As used herein the term "domestic corporation" shall mean and include any of the following:

            (a) Corporations, joint stock companies or associations, or other business organizations organized under the laws of this state which have privileges, powers, rights, or immunities not possessed by individuals or partnerships.

            (b) All entities taxed as corporations pursuant to 26 U.S.C. Subtitle A, Chapter 1, Subchapter C for federal income tax purposes, notwithstanding any provision of law to the contrary. Such entities shall be treated and taxed in the same manner that such entities are treated and taxed for federal income tax purposes.

            (c) Nothing in this Subsection shall extend franchise tax liability to any limited liability company qualified and eligible to make an election to be taxed in accordance with the provisions of 26 U.S.C. Subtitle A, Chapter 1, Subchapter S on the first day of its fiscal or annual year or to any other entity that was acquired before January 1, 2014, but not earlier than January 1, 2012, by an entity that was taxed pursuant to 26 U.S.C, Subtitle A, Chapter1, Subchapter S.

            (2) The term "foreign corporation" shall mean and include all such business organizations as hereinbefore described in this Paragraph which are organized under the laws of any other state, territory or district, or foreign country.

            (3) For purposes of this Chapter, "corporation" shall mean a domestic corporation or foreign corporation as provided for in this Section.

            D.(1) For taxable periods beginning before January 1, 2023, the annual rates of tax shall be one dollar and fifty cents for each one thousand dollars, or major fraction thereof, on the first three hundred thousand dollars of taxable capital and three dollars for each one thousand dollars, or major fraction thereof, in excess of three hundred thousand dollars of taxable capital.

            (2) Except as otherwise provided in R.S. 47:601.1 or 601.2, for taxable periods beginning on or after January 1, 2023, the annual rate of tax shall be two dollars and seventy-five cents for each one thousand dollars, or major fraction thereof, in excess of three hundred thousand dollars of taxable capital.

            Amended by Acts 1958, No. 437, §2; Acts 1970, No. 325, §1, emerg. eff. July 13, 1970 at 2:15 P.M.; Acts 1984, No. 194, §1, eff. July 1, 1984; Acts 2004, 1st Ex. Sess., No. 2, §§1, 2, eff. Jan. 1, 2006; Acts 2009, No. 476, §1, eff. for taxable periods beginning after Jan. 1, 2010; Acts 2016, 1st Ex. Sess., No. 12, §2, eff. March 10, 2016; HCR 66, 2020 R.S.; Acts 2021, No. 389, §1, eff. Dec. 20, 2021.

NOTE: See Acts 1984, No. 194, §2.

NOTE: See Acts 2016, 1st Ex. Sess., No. 12, §3, regarding applicability.

NOTE: See HCR 66 of the 2020 R.S. and Acts 2020, 1st Ex. Sess., No. 15, regarding suspension of Subsection A.