The Senate versions of the Sales Tax on Machinery and Equipment and Corporate Franchise Tax bills are better than the House versions:
SB 39 (Sen. Mount) – Providing for a full state sales tax exclusion for equipment purchased to replace or repair equipment damaged in connection with the hurricanes, including damage from water, wind, fire, or criminal acts. Unlike HB 39 (Rep. Hammett), this bill does not require that the damaged equipment be uninsured or under insured.
Reported favorably by the Senate Revenue and Fiscal Affairs Committee and awaiting action on the Senate floor.
SB 41 (Sen. Mount) – Provides for the non-taxability for corporation franchise tax purposes of borrowed capital in excess of the borrowed capital on the corporations books for the calendar or fiscal year closing immediately prior to August 28, 2005. Unlike HB 41, which requires 50% of the corporations total revenues to come from the hurricane impact area or 50% of the corporations total property to have been situated in or used in the hurricane impact area, SB 41 provides that the corporations authorized to use this use the benefits of the bill are corporations that either had (1) at least 50% of their property in the state located in, or (2) received at least 50% of their in-state revenues from, the Hurricane Katrina or Hurricane Rita FEMA Individual Assistance Areas. The Senate bill looks not to total revenues and property, but to revenues and property in Louisiana. If the corporation meets the thresholds, the new borrowed capital does not have to be directly tied to damage in order to be excluded.
Reported favorably by the Senate Revenue and Fiscal Affairs Committee and awaiting action on the Senate floor.