Here are summaries of some of the important tax bills currently under consideration in the 2005 First Extraordinary Legislative Session. With the breadth of the agenda before the legislators and the limited time available, expect daily changes in the composition and/or fate of these bills.

HB 24 (Rep. Hammett)-Makes modifications to the individual and corporation income taxes to adjust the federal income tax deduction so that the amount of the deduction is not reduced because of federal income tax credits enacted as a result of the hurricanes. This bill insures that Louisiana income taxes do not increase as a result of the federal credits enacted because of the hurricanes.

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.

HB 39 (Rep. Hammett)-Provides for a full exclusion from state sales tax in connection with machinery and equipment purchased, leased, or rented and used by a manufacturer and which will repair, service, or replace equipment damaged or destroyed by Katrina or Rita. The damaged equipment must be uninsured or under insured. Current law provides for the phase-in of the state sales tax exclusion for manufacturing machinery and equipment. Through June 30, 2006, 81% of such equipment is taxable. The percentage of taxability will be reduced to 65% beginning July 1, 2006. Under HB 39, a full state sales tax exclusion will be available with respect to machinery and equipment used to replace equipment damaged or destroyed by the hurricanes. See also, SB 39 (Sen. Mount)(Senate Floor).

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.

HB 41 (Rep. Hammett)-Provides for the non-taxability for corporation franchise tax purposes of borrowed capital in excess of the borrowed capital on the corporations books for the calendar or fiscal year closing immediately prior to August 28, 2005. In order to be eligible for the non-taxability of new debt, a corporation for the calendar or fiscal year closing immediately prior to August 28, 2005 must have had 50% or more of its revenue directly attributable to activities in a hurricane Katrina or hurricane Rita FEMA individual assistance area or 50% or more of its property and assets must have been situated or used in a hurricane Katrina or hurricane Rita FEMA individual assistance area. See also, SB 41 (Sen. Mount)(Senate Floor).

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.

HB 40 (Rep. Hammett)-Reduces the state sales tax on natural gas and electricity from 3.8% to 3.3%. See also, SB 38 (Sen. Mount)(Senate Floor)

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.

HB 148 (Rep. Arnold) (substitute for HB 64 by Rep. Hammett)-Expands existing law to provide for the reassessment of property damaged or destroyed during a disaster or emergency declared by the Governor and to provide for procedures in connection with such assessments. Under current law (La. R.S. 47:1978) when property is flooded the assessor is required to reassess the property based upon its fair market value after the flooding conditions for the year in which the flood occurs. HB 148 would add a complimentary provision in La. R.S. 47:1978.1 to provide for such reassessments when property is damaged or destroyed during a disaster or emergency declared by the Governor. Thus, this would expand the relief provisions of La. R.S. 47:1978 for floods to other types of disasters, including wind and other damage from Katrina and Rita. If the assessment lists have already been certified at the time the disaster or emergency occurs, the assessor will be required to do new assessments using the procedures provided for in HB 148.

HB 35 (Rep. Arnold)-Extends the date for the certification of the Orleans parish assessment roles for ad valorem tax year 2006 to December 31, 2005.

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.

HB 44 (Rep. Hammett)-Amends La. R.S. 47:2106 to update procedures for the deferment of tax payments as a result of the damage or destruction of property during a disaster or emergency declared by the Governor. Allows a taxpayer within 30 days after the mailing of a property tax bill to apply for a deferment of the taxes due.

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.

HB 65 (Rep. Hammett)-Extends certain time periods for the preparation and review of Orleans parish tax rolls and extends the deadline for payment.

Reported favorably from the House Ways & Means Committee and awaiting action on the House floor.