LEGISLATIVE FISCAL OFFICE
Fiscal Note
Fiscal Note On: SB 157 SLS 21RS 143
Bill Text Version: ENROLLED
Opp. Chamb. Action:
Proposed Amd.:
Sub. Bill For.:
Date: June 8, 2021 8:19 AM Author: ALLAIN
Dept./Agy.: Revenue
Subject: Income Tax Exemption For Certain Mobile Workers Analyst: Greg Albrecht
TAX EXEMPTIONS EN SEE FISC NOTE GF RV See Note Page 1 of 1
Exempts certain mobile workers from individual income tax and their employers from withholding tax. (gov sig)
Current law subjects nonresident employees to state income tax on the income earned or derived from activity in the state,
and requires their employers to deduct and remit withholdings of this tax liability.
Proposed law exempts nonresident employees from a state income tax liability if they perform employment duties in the
state for 25 or fewer days, and exempts their employers from the withholding requirement for those same employees. If the
employee works in-state for more than 25 days in a year, they are subject to state taxation on all days of earnings in the
state, including the first 25 days.
Proposed law does not provide this exemption to professional athletes, staff members of professional athletic teams,
professional entertainers, public figures, or qualified motion picture production employees.
Effective upon governor's signature.
EXPENDITURES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. $0 $0 $0 $0 $0 $0
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total $0 $0 $0 $0 $0 $0
REVENUES 2021-22 2022-23 2023-24 2024-25 2025-26 5 -YEAR TOTAL
State Gen. Fd. SEE BELOW SEE BELOW SEE BELOW SEE BELOW SEE BELOW
Agy. Self-Gen. $0 $0 $0 $0 $0 $0
Ded./Other $0 $0 $0 $0 $0 $0
Federal Funds $0 $0 $0 $0 $0 $0
Local Funds $0 $0 $0 $0 $0 $0
Annual Total
EXPENDITURE EXPLANATION
There is no anticipated direct material effect on governmental expenditures as a result of this measure.
REVENUE EXPLANATION
The bill relieves from state individual income tax liability nonresident employees that earn income in the state for 25 or
fewer days a year, as well as the liability of their employers to withhold and remit tax payments. While this can only work to
reduce tax liabilities to the state, the bill appears to target nonresident employees less likely to be filing annual income tax
returns with payments to the state (as well as withholding payments). Short duration nonresident employees that are likely
to be filing tax returns with the state (as well as withholding payments) are not provided the bill’s exemption (professional
athletes, staff members of professional athletic teams, professional entertainers, public figures, or qualified motion picture
production employees). These types of employees have worked under long-standing routines of having their income earned
in various states and be allocated to the states’ where earned. Thus, the bill seems likely to have only a minor effect on
annual collections.
Senate Dual Referral Rules House
13.5.1 >= $100,000 Annual Fiscal Cost {S & H} 6.8(F)(1) >= $100,000 SGF Fiscal Cost {H & S}
Christopher A. Keaton
13.5.2 >= $500,000 Annual Tax or Fee 6.8(G) >= $500,000 Tax or Fee Increase
Change {S & H} or a Net Fee Decrease {S} Legislative Fiscal Officer


Statutes affected:
SB157 Original: 47:242(1), 47:293(10)
SB157 Engrossed: 47:242(1), 47:293(10)
SB157 Reengrossed: 47:242(1), 47:293(10)
SB157 Enrolled: 47:242(1), 47:293(10)
SB157 Act 383: 47:242(1), 47:293(10)