Louisiana

Louisiana Tax Changes - November 2024

Quick Look

Week Of 11.21.2024

Tobacco Tax Rules

  • Amendment and Adoption: The Louisiana Department of Revenue has amended LAC 61:I.5101 and adopted LAC 61:I.5107 to 5115.
  • Effective Date: November 20, 2024.
  • Key Provisions:
    • Guidelines for licensed wholesale tobacco dealers on reporting imported cigarettes.
    • Procedures for purchasing unstamped cigarettes and tobacco, requiring approval from the Tobacco Unit of the Attorney General’s Office.
    • Instructions for purchasing tax stamps and insurance on shipments.
    • Procedures for affixing tax stamps and requesting refunds for damaged stamps.

Net Capital Gains Deduction

  • Adoption of Rule: The Louisiana Department of Revenue has adopted LAC 61:I.1312.
  • Effective Date: November 20, 2024.
  • Key Features:
    • Provides an individual income tax deduction for net capital gains from the sale or exchange of equity interests in non-publicly traded entities based in Louisiana.
    • Includes definitions, documentation requirements, and eligibility restrictions.

Ad Valorem Tax Exemption Program

  • Emergency Rule Issued: The Louisiana Economic Development Office has adopted an emergency rule, LAC 13:I.Chapter 5.
  • Effective Date: October 22, 2024 (valid for 180 days or until final rules are adopted).
  • Key Changes:
    • Aligns with Executive Order JML 24-23 (February 21, 2024).
    • Provides definitions, details on eligible and ineligible items, and outlines application and reporting requirements.
    • Includes contract provisions and rules regarding violations.

These changes reflect Louisiana's ongoing efforts to update and clarify tax regulations across various sectors.

Last updated: December 6, 2024
Detailed Look

Week Of 11.21.2024

Louisiana Cigarette, Alcohol & Miscellaneous Taxes—Louisiana tobacco tax rules amended and adopted.

The Louisiana Department of Revenue has amended LAC 61:I.5101 pertaining to the reporting of certain imported cigarettes and has adopted LAC 61:I.5107 to 5115 relating to wholesale tobacco dealers receiving unstamped or unpaid tobacco products, purchasing and affixing tax stamps, and bond waivers. The rule provides guidelines and clarification for licensed wholesale tobacco dealers regarding how to report certain imported cigarettes, the purchase of unstamped cigarettes and tobacco that requires approval from the Tobacco Unit of the Attorney General’s Office, the purchase of stamps and insurance on the shipment, the procedure for affixing tax stamps, procedures for bond waiver, and procedures for requesting a refund for stamps affixed to goods that become damaged or removed from the state’s directory. The rules are effective November 20, 2024.

Louisiana Personal Income Tax—Louisiana adopts net capital gains deduction rule.

The Louisiana Department of Revenue has adopted LAC 61:I.1312, effective November 20, 2024, to administer La. Rev. Stat. Ann. §47:293.2 relative to the net capital gains deduction. The law provides an individual income tax deduction for net capital gains resulting from the sale or exchange of an equity interest in or substantially all of the assets of a non-publicly traded corporation, partnership, limited liability company, or other business organization commercially domiciled in Louisiana. The rule provides definitions, documentation requirements, and eligibility restrictions.

Louisiana Property Tax—Louisiana Ad Valorem Tax Exemption Program—emergency rule issued.

The Louisiana Economic Development Office of Business Development has adopted an emergency rule, LAC 13:I.Chapter 5, regarding the Industrial Ad Valorem Tax Exemption Program. The rule is being amended to implement programmatic changes in alignment with Executive Order JML 24-23, 02/21/2024, which outlined conditions for participation in the program. The emergency rule provides definitions; details eligible and ineligible items; provides information of advance notification, application requirements, reporting requirements, contract provisions, and violation of rules or documents. The emergency rule is effective October 22, 2024, and will remain in effect for a period of 180 days or until adoption of final rules, whichever occurs first.

Last updated: December 6, 2024

Week Of 11.21.2024

Louisiana Cigarette, Alcohol & Miscellaneous Taxes—Louisiana tobacco tax rules amended and adopted.

The Louisiana Department of Revenue has amended LAC 61:I.5101 pertaining to the reporting of certain imported cigarettes and has adopted LAC 61:I.5107 to 5115 relating to wholesale tobacco dealers receiving unstamped or unpaid tobacco products, purchasing and affixing tax stamps, and bond waivers. The rule provides guidelines and clarification for licensed wholesale tobacco dealers regarding how to report certain imported cigarettes, the purchase of unstamped cigarettes and tobacco that requires approval from the Tobacco Unit of the Attorney General’s Office, the purchase of stamps and insurance on the shipment, the procedure for affixing tax stamps, procedures for bond waiver, and procedures for requesting a refund for stamps affixed to goods that become damaged or removed from the state’s directory. The rules are effective November 20, 2024.

Louisiana Personal Income Tax—Louisiana adopts net capital gains deduction rule.

The Louisiana Department of Revenue has adopted LAC 61:I.1312, effective November 20, 2024, to administer La. Rev. Stat. Ann. §47:293.2 relative to the net capital gains deduction. The law provides an individual income tax deduction for net capital gains resulting from the sale or exchange of an equity interest in or substantially all of the assets of a non-publicly traded corporation, partnership, limited liability company, or other business organization commercially domiciled in Louisiana. The rule provides definitions, documentation requirements, and eligibility restrictions.

Louisiana Property Tax—Louisiana Ad Valorem Tax Exemption Program—emergency rule issued.

The Louisiana Economic Development Office of Business Development has adopted an emergency rule, LAC 13:I.Chapter 5, regarding the Industrial Ad Valorem Tax Exemption Program. The rule is being amended to implement programmatic changes in alignment with Executive Order JML 24-23, 02/21/2024, which outlined conditions for participation in the program. The emergency rule provides definitions; details eligible and ineligible items; provides information of advance notification, application requirements, reporting requirements, contract provisions, and violation of rules or documents. The emergency rule is effective October 22, 2024, and will remain in effect for a period of 180 days or until adoption of final rules, whichever occurs first.