§243.  Computation of net allocable income from Louisiana sources

A.  Items of gross allocable income shall be allocated directly to the states from which such items of income are derived, as follows:

(1)  Rents and royalties from immovable or corporeal movable property, and profits from sales and exchanges of capital assets consisting of immovable or corporeal movable property, shall be allocated to the state where such property is located at the time the income is derived.  

(2)  Interest on customers' notes and accounts shall be allocated to the state in which such customers are located.  

(3)  Profits from sales or exchanges not made in the regular course of business, of property, other than capital assets consisting of incorporeal property or rights, shall be allocated to the state where such property is located at the time of the sale.  A mineral lease, royalty interest, oil payment or other mineral interest shall be located in the state in which the property subject to such mineral interest is situated.  

(4)  Other interest, dividends and profits from sales and exchanges of capital assets consisting of incorporeal property or rights shall be allocated to the state in which the securities or credits producing such income have their situs, which shall be at the business situs of such securities or credits if they have been so used in connection with the taxpayer's business as to acquire a business situs, or, in the absence of such a business situs, shall be at the legal domicile of the taxpayer in the case of an individual or at the commercial domicile of the taxpayer in the case of a corporation; provided that dividends upon stock having a situs in Louisiana received by a corporation from another corporation which is controlled by the former, through ownership of fifty percent or more of the voting stock of the latter, shall be allocated to the state or states in which is earned the income from which the dividends are paid, such allocation to be made in proportion to the respective amounts of such income earned in each state; and provided, further, that interest on securities and credits having a situs in Louisiana received by a corporation from another corporation which is controlled by the former through ownership of fifty percent or more of the voting stock of the latter, shall be allocated to the state or states in which the real and tangible personal property of the controlled corporation is located, on the basis of the ratio of the value of such property located in Louisiana to the total value of such property within and without the state.  

(5)  Royalties or similar revenue from the use of patents, trademarks, copyrights, secret processes and other similar intangible rights shall be allocated to the state or states in which such rights are used.  

(6)  Estates, trusts and partnerships having a non-resident individual or a corporation as a member or beneficiary shall allocate and apportion their income within and without this state in accordance with the processes and formulas prescribed in this Part, and the share of any such non-resident or corporation member or beneficiary in the net income from sources in this state as so computed, shall be allocated to this state in the return of such member or beneficiary.  

(7)  Salaries, wages and other compensation received by a non-resident individual for personal services shall be allocated to the state or states in which the services were rendered, and in the case of services rendered partly within and partly without this state, the allocation shall be made on the basis of the amount of time the taxpayer was employed within and without this state.  

(8)  Income from construction, repair, or other similar services shall be allocated to the state in which the work is done.  

B.  From the gross allocable income allocated to this state there shall be deducted all expenses, losses and other deductions except federal income taxes allowable under this Chapter which are directly attributable to such income allocated to this state, and there shall also be deducted a ratable portion of allowable deductions, except federal income taxes, which are not directly attributable to any item or class of gross income.  

C.  The difference between the gross income allocated to this state and the deductions allocated and prorated thereto in accordance with the provisions of this Section shall be the net allocable income (or loss) earned within or derived from sources within this state.  

Amended by Acts 1950, No. 445, §1; Acts 1958, No. 170, §2; Acts 1970, No. 258, §7; Acts 1973, Ex.Sess., No. 8, §1.