House Bill No. by Representative Cormier seeks to establish substantial nexus for income tax administration in Louisiana by amending and reenacting sections of the Louisiana Revised Statutes, specifically R.S. 47:287.92 and R.S. 47:287.93, while also enacting new provisions under Subpart B-1. The bill introduces definitions and standards for determining substantial nexus, setting specific thresholds based on property, payroll, and sales, with amounts of $50,000 for property and payroll, and $500,000 for sales. It also grants the secretary of the Department of Revenue the authority to adjust these thresholds annually based on changes in the consumer price index (CPI).

Additionally, the bill repeals R.S. 47:287.94(H) and introduces new definitions related to income classification, including the treatment of profits or losses from property sales as allocable income. It outlines the allocation of income from various sources based on the location of the property or service provided. The provisions will apply to taxable periods beginning on or after January 1, 2023, and will take effect upon the governor's signature or the expiration of the time for gubernatorial action. The bill modifies the treatment of allocable income for corporate income tax purposes and revises the allocation process while repealing a section related to the apportionment of profits or losses from property sales not made in the regular course of business.

Statutes affected:
HB518 Original: 47:92(B)(2), 47:93(A), 47:94(H)