As announced in Louisiana Tax Commission Statewide Advisory 03-2021 on Hurricane Ida, pursuant to La. R.S. 47:1978.1, Louisiana Assessors in Parishes affected by Hurricane Ida have to reassess property for purposes of the upcoming annual property tax bills to take into account any reductions in fair market value to property as a result of hurricane
Recent jurisprudential and legislative developments have significantly altered the Louisiana state tax penalty regime. First, the Louisiana Supreme Court on November 4, 2020 denied the Louisiana Department of Revenue’s writ application in Smith International, Inc. v. Kimberly Robinson, Secretary, Louisiana Department of Revenue , rendering the earlier decision by the Louisiana First Circuit Court of Appeal final. Now, the penalties imposed by Acts 2015, No. 128, eff. July 1, 2015 cannot be applied to tax periods prior to July 1, 2015. In addition, the late payment penalty in La. R.S. 47:1602(A) is no longer applicable to amounts later assessed on taxpayers who timely filed their returns and remitted the amount of tax shown as due on their tax returns. Taxpayers under audit should object to the Department of Revenue asserting these penalties in audit workpapers.
Continue Reading Recent Changes to Louisiana Tax Penalty Regime
The oil and gas industry has a significant and far reaching economic impact in Louisiana. According to one 2014 study, the total direct and indirect impact on the state is approximately $73.8 billion. Taxes make up a large part of the industry’s direct economic impact in Louisiana: In 2013, the industry paid nearly $1.5 billion in taxes to the State, about 14.6% of the total taxes, licenses and fees collected that year. A large chunk of the taxes paid by oil and gas companies are severance taxes, which are levied on the production of natural resources taken from private and public land or water bottoms within the territorial boundaries of the state. Natural resources might include, for example timber, minerals like oil and gas, coal, salt, or sulphur. Overall, collections on oil and gas amount to nearly 92% of all severance tax collections in the state.…
Continue Reading Louisiana Department of Revenue Targets Energy Companies in Rash of Oil Severance Tax Audits