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Incentives TaxesBusinesses locating to The Port of Shreveport-Bossier are eligible for a number or incentive programs including Port-financed bond programs and industrial property tax exemption. LOUISIANA TAX PROFILE Louisiana’s business taxes include:
State Corporate Income Taxes are based on net income of domestic and foreign corporations derived from sources in Louisiana. Tax rates are graduated by the following schedule: Corporate Income Tax Rate
The effective rate is somewhat less because Federal income taxes are deductible in computing Louisiana net taxable income. A waiver of all or part of corporate income tax is allowable under certain incentive programs. State Corporate Franchise Taxes are levied annually on domestic and foreign corporations doing business in the state; or owning or using capital, plant or other property in the state. The tax is calculated on issued and outstanding capital stock, surplus, undivided profits, and borrowed capital, rates are: Corporate Franchise Tax
The minimum tax is $10 per year. Waiver of all or part of the corporate franchise tax is allowable under certain incentive programs. As of January 1, 2006, the borrowed capital portion of Louisiana's franchise tax began a seven year phased out. In calculating the taxpayer's franchise tax liability, the taxpayer's total capital is discounted by the following phase out schedule: Corporate Franchise Tax Phase Out
Local ad valorem property taxes in Louisiana are levied annually by the local and parish (county) authorities. There is no state property tax, and public properties (state and local) are not subject to taxation. The tax applies to only 15% of the assessed fair market value of the business' capital assets and 10% of the fair market value of land. Because parishes have some latitude in setting the tax rate, rates vary. Expressed in mills (1/1000ths of a dollar), the state-wide average is approximately 100 mills, or 10 percent. For example, the taxable portion of an asset with a fair market value of $100,000 is only $15,000. Using the state average millage of 100, or 10%, the annual property tax would be $1,500.The State of Louisiana offers an ad valorem tax, 10-year abatement for qualified companies. The state's abatement program is described in more detail in LOUISIANA TAX INCENTIVES Local inventory taxes are computed the same way as the ad valorem property tax. Inventories are valued at purchase price plus carrying charges to destination. The taxes apply to only 15% of the value of the business’ annual average inventory and are due to the local taxing authorities. The State of Louisiana allows businesses to reduce their state tax liabilities by the amount they paid in local inventory taxes. If the amount paid in inventory taxes exceeds the business' state tax liabilities, the state will refund the difference in cash. State sales/use tax is 4% and is levied on the retail sale of personal property, on goods used or stored for use in state, and on leases and rentals of tangible personal property and certain services. Basic commodities, such as food for home consumption and prescription drugs, are exempt from sales/use tax. In 2004, The State of Louisiana began a seven-step phase toward the complete exclusion of the price of eligible manufacturing machinery and equipment from state sales/use tax. This phase out will become complete on July 1, 2010. The remaining gradual exclusion is scheduled to proceed as follows: Manufacturing/Machinery Sales/Use Tax Phase Out
Local sales/use taxes are levied by local governing authorities with voter approval and apply to the same retail sales covered by the state sales/use tax. Currently, local sales/use taxes average around 4%. |
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