View Recent Blog Posts in State and Local Taxation

  • Ballot Measure to Codify Longstanding Approach to CWIP By Angela W. Adolph Construction Work in Progress (“CWIP”) is generally recognized as property that is in the process of changing from one state to another, such as the conversion of personal property from inventory to asset or fixture by installation, assembly, or construction.  See Valuation of Machinery and Equipment Construction in Progress (CIP), Pollack... Continue Reading... ....
  • 2017 Louisiana Regular Legislative Session Ends on a Rather Anticlimactic Note By Jaye Calhoun, Phyllis Sims, Willie Kolarik, and McClain Schonekas Despite consideration of an Ohio-style gross receipts tax, a Michigan-style single business tax and various versions of flat taxes, the 2017 Regular Session of the Louisiana Legislature ended on June 8, 2017, without the enactment of any significant tax reform. Because the Legislature neglected to... Continue Reading... ....
  • It’s Time to Amend Operating Agreements as the Result of TEFRA Repeal By Jaye Calhoun and David Hamm It’s time to amend the governing documents of flow-through entities taxed as partnerships to address recent federal legislative changes impacting all such entities.  Failure to amend now could result in unfavorable tax consequences.  Section 1101 of The Bipartisan Budget Act of 2015 (the “BBA”) substantially changes how the Internal... Continue Reading... ....
  • Louisiana Governor Edwards’ Proposed Commercial Activity Tax Dies In House Ways and Means Committee By William J. Kolarik, II On April 25, 2017, State Representative Sam Jones requested that the Louisiana House Committee on Ways and Means voluntarily defer HB628, which would have imposed a commercial activity tax upon many business organizations doing business in Louisiana.  The Committee’s vote to voluntarily defer the bill means that the proposed commercial... Continue Reading... ....
  • Legislation Composing Governor Edwards’ Proposed Tax Reforms Filed in the Louisiana House of Representatives By William J. Kolarik, II On April 17, 2017, the legislation that composes the centerpiece of Governor Edwards’ proposed tax reforms was filed in the Louisiana House of Representatives.  House Bill 628, introduced by state Rep. Sam Jones, contains the legislation that would establish the commercial activity tax.  The Kean Miller State and Local Tax team... Continue Reading... ....
  • Governor Edwards Proposes Comprehensive Louisiana Tax Reform Package By Jaye A. Calhoun, Jason R. Brown, and William J. Kolarik, II On March 29, 2017, Louisiana Governor John Bel Edwards released the broad outlines of his Louisiana tax reform proposal (the “Tax Reform Proposal”), which he promoted as a comprehensive plan to stabilize Louisiana’s budget and avoid future mid-year budget cuts. The Governor’s plan... Continue Reading... ....
  • The “New” New Orleans Gallonage Tax – Yet Another Tax on Retailers? By Jill Gautreaux The City of New Orleans (“the City”) has amended and re-enacted a gallonage tax on alcoholic beverages of low and high alcoholic content. A “gallonage tax” is a tax on alcoholic beverages based upon the amount, calculated in gallons, of alcoholic beverages sold. The current ordinance became effective on January 1, 2017,... Continue Reading... ....
  • Recent Cases Highlight the Questionable Constitutionality of Louisiana’s “Throw-Out” Rule By William Kolarik The New Jersey Tax Court’s opinion in Elan Pharmaceuticals, Inc. v. Director, Division of Taxation, Dkt. No. 010589-2010 (Tax Ct. of N.J. February 6, 2017) highlights the potential constitutional concerns related to the application of Louisiana’s recently enacted throw-out rule. On June 28, 2016, Louisiana Governor Edwards signed H.B. 20 (Act 8)... Continue Reading... ....
  • Bridges v. Nelson Industrial Steam Company, Inc. and Recent Amendments to Louisiana’s Further Processing Exclusion from Sales and Use Tax By Linda Akchin and Chris Dicharry INTRODUCTION Louisiana law imposes a sales tax on “sales at retail.”  “Sale at retail” is defined in the sales tax law, and the definition provides that the term does not include “sales of materials for further processing into tangible personal property for sale at retail.”    This provision is commonly... Continue Reading... ....
  • Suspension of Insurance Provisions in Flood Affected Parishes By Daniel Stanton By emergency declaration issued August 18, 2016, the Commissioner of the Louisiana Department of Insurance adopted Emergency Rule 27. Emergency Rule 27 allows the Department of Insurance to suspend certain statutes in the Louisiana Insurance Code and the rules and regulations promulgated under those statutes that may affect families and business affected... Continue Reading... ....