Louisiana § RS 47:4302 - Contracts of exemption; renegotiation; violation; lists

§ RS 47:4302. Contracts of exemption; renegotiation; violation; lists

            A. The Board of Commerce and Industry with approval of the governor may, pursuant to its rule, enter into contracts for periods not exceeding five years with businesses, that by rule, shall be defined in a manner consistent with those persons that are defined as an "employer" within the meaning of R.S. 51:2453(2)(f)(i) through (v) located in Louisiana under which such persons are granted exemption from the taxes imposed by this state as provided in R.S. 47:4305, upon the terms, conditions, and limitations specified in this Chapter and subject to such other terms, conditions, and limitations as the board, as established by rule or upon recommendation of the governor and Louisiana Economic Development, deems to be in the best interests of the state.

            B.(1) Each contract of exemption entered into under authority of this Chapter may be renewed for periods of up to five years, provided that the total number of years of exemption shall not exceed fifteen years unless otherwise provided in R.S. 47:3204(B)(1)(c).

            (2) No contracts shall be entered into and no existing contracts may be renewed pursuant to the provisions of this Section after June 30, 2025.

            C. Upon violation of any of the terms and conditions of the contract under which exemptions are granted, the Board of Commerce and Industry, with approval of the governor, shall give notice thereof in writing, and unless the violation is corrected within ninety days, any remaining portion of the exemption from taxation granted under any contract entered into under this Chapter may be terminated.

            D.(1) All exemptions from taxation granted under contracts entered into under authority of this Chapter shall be listed, together with the amount of the exemptions, by the board and a copy of each such listing shall be submitted to the agencies of the state which collect the taxes from which such exemptions have been granted. Each such collecting agency shall make and maintain a list of all such exemptions in effect. Whenever any exemption, or any part thereof, ceases by reason of a violation of the terms of the contract under which it was granted, or for any other cause, the board shall notify the collecting agencies.

            (2) If the collecting agencies receive notice that the exemption, or any part thereof, has ceased by reason of a violation of the terms of the contract under which it was granted after the establishment has already received the exemption, then the amount exempted for the year in which the violation occurred, and for each year thereafter in which the violation is not remedied shall be considered a tax due as of December thirty-first of the year in which the violation occurred, and for each year thereafter in which an exemption is used and the violation is not remedied and it shall be collected by the collecting agencies in the same manner and subject to the same provisions for the collection of other tax debts.

            Added by Acts 1982, No. 773, §1; Acts 2002, No. 36, §1, eff. June 25, 2002; Acts 2005, No. 403, §1; Acts 2007, No. 389, §1, eff. July 10, 2007; Acts 2024, 3rd Ex. Sess., No. 5, §1, eff. Jan. 1, 2025; Acts 2024, 3rd Ex. Sess., No. 11, §2, eff. Dec. 4, 2024.

            NOTE: See Acts 2024, 3^rd Ex. Sess., No. 5, §4, regarding applicability to franchise tax periods beginning on or after Jan. 1, 2026.