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 in this Chapter, 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) The term "domestic corporation" shall not include either:
(i) A 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, Chapter 1, Subchapter S.
(ii) A limited liability company filing as a real estate investment trust for federal
income tax purposes in which one hundred percent of the limited liability company's shares
of common stock are owned by a tax-exempt organization and the limited liability company
met these requirements on or before July 1, 2023.
(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; Acts 2023, No. 432, §1, eff. June 27, 2023.
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.