Louisiana Revised Statutes 47:297.3 – Exclusion from income; S Bank shareholder non-taxable income
Terms Used In Louisiana Revised Statutes 47:297.3
- Corporation: A legal entity owned by the holders of shares of stock that have been issued, and that can own, receive, and transfer property, and carry on business in its own name.
- person: includes a body of persons, whether incorporated or not. See Louisiana Revised Statutes 1:10
- Subtitle: means and includes all the Chapters in Subtitle II of this Title 47 and any other Title of the Louisiana Revised Statutes of 1950 except the provisions of Chapter 1 of Subtitle IV of Title 47 of the Louisiana Revised Statutes of 1950 and estate taxes for the assessment, collection, administration, and enforcement of taxes, fees, licenses, penalties, and interest due the state of Louisiana which have been delegated to the Department of Revenue. See Louisiana Revised Statutes 47:1501
A. For taxable periods beginning after December 31, 2002, an S Bank shareholder may exclude from Louisiana tax table income an amount equal to the S Bank shareholder’s non-taxable income as defined in Subsection B of this Section.
B. For purposes of this Section, the following terms shall have the meanings ascribed to them in this Subsection, unless the context clearly indicates a different meaning:
(1) “Bank” means a financial institution identified in La. Rev. Stat. 47:287.501(B)(1) or an entity that owns one hundred percent of a financial institution identified in La. Rev. Stat. 47:287.501(B)(1).
(2) “S Bank” means a bank, as defined in this Subsection, that is classified as an S corporation under Subchapter S of the Internal Revenue Code.
(3) “S Bank shares tax” means the ad valorem tax imposed on shares of stock of S Banks in accordance with Part III of Chapter 3 of Subtitle III of this Title.
(4) “S Bank shareholder” means a person who is an eligible shareholder of an S Bank under the provisions of §1361 of the Internal Revenue Code.
(5) “S Bank non-taxable income” means the portion of the income reported by an S Bank on Form 1120S Schedule K-1, or equivalent document, and which is attributable to the net earnings used to compute the S Bank’s shares tax as provided in La. Rev. Stat. 47:1967.
C. Notwithstanding any law to the contrary, the amount of the exclusion shall be subject to adjustments to the Federal Form 1120S Schedule K-1, or equivalent document, as a result of amendments or federal audit.
Acts 2002, No. 30, §1, eff. for taxable periods beginning on or after Jan. 1, 2002.