Thank you for subscribing to our firm’s Tax Law Alert. In this alert you will find information on a recent bill passed during the Louisiana Legislature 2017 Regular Session. If you have any questions pertaining to this information, please contact Leon Rittenberg III at (504) 569-2900.
Louisiana House Bill Allows Vessel Owners to Contest Ad Valorem Taxes
On the last day of the 2017 Regular Session, the Louisiana Legislature passed HB 425, which will become law if signed by the governor. In sum, HB 425 allows a vessel owner to contest ad valorem taxes assessed on vessels (based upon assessed value issues or based upon other grounds such as the location of the vessel or the constitutionality of the tax) by paying the ad valorem taxes under protest while preserving the taxpayer’s rights to the Louisiana state tax credits for ad valorem taxes.
Under prior law, only ad valorem taxes paid without protest were eligible for the credit. Thus, under prior law, one who challenged the imposition of the ad valorem taxes lost the ability to receive an income or franchise tax credit from the State of Louisiana.
Provided the bill is signed by the governor, the new law will apply to income tax periods beginning on and after January 1, 2017 and corporate franchise tax periods beginning on and after January 1, 2018.
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The information contained within this newsletter does not constitute legal advice and is not intended to create an attorney-client relationship. You should consult an attorney for individual advice regarding your own particular situation.