Louisiana Business Taxes

Tax Description
Corporate Income Tax1
  • 4% on the first $25,000 of net income
  • 5% on the next $25,000
  • 6% on the next $50,000
  • 7% on the next $100,000
  • 8% on the excess over $200,000
Corporate Franchise Tax1 The initial tax is $10, then:

  • $1.5 for each $1,000 (or major fraction thereof) up to $300,000 of capital employed in Louisiana
  • $3.00 for each $1,000 (or major fraction thereof) in excess of $300,000 of capital employed in Louisiana
Occupational License Tax2 The occupational license tax is usually based on gross revenues, but in some cases is calculated on certain net revenues. In other cases, the tax can be a flat fee.
Sales Tax3 5% state sales tax (calculated on the sales price). 3% sales tax rate is applicable to telecommunications and sales of prepaid telephone cards and authorization numbers.
Use Tax4 8% consumer use tax (calculated on the cost price)
Unemployment Compensation Insurance The tax is payable quarterly and is equal to a percentage (currently set at 0.11% to 6.20%) of the first $7,700 of each employee’s salary or wages for the calendar year.5
Severance Tax (GAS)6
  • Full Rate – 7/1/10 to 6/30/11 – $.164 per MCF
  • Incapable Oil-Well Gas – $.03 per MCF
  • Incapable Gas-Well Gas – $.013 per MCF
  • Produced Water-Full Rate – $.131 per MCF
  • Produced Water-Incapable Oil Well Gas – $.24 per MCF
  • Produced Water-Incapable Gas Well Gas – $.0104 per MCF
Severance Tax (OIL)6
  • Full Rate Oil/Condensate – 12.5% of value
  • Incapable Oil Rate – 6.25% of value
  • Stripper Oil Rate – 3.125% of value
  • Reclaimed Oil – 3.125% of value
  • Produced Water-Full Rate – 10.0% of value
  • Produced Water-Incapable Oil Rate – 5.0% of value
  • Produced Water-Stripper Oil Rate – 2.5% of value
Severance Tax (Timber)6
  • Trees and Timber – 2.25% of current stumpage value as determined by the Louisiana Forestry Commission
  • Pulpwood – 5% of current stumpage value as determined by the Louisiana Forest Commission
Minerals
  • Sulphur – $1.03 per long ton of 2,240 lbs
  • Salt – $.06 per ton of 2,000 lbs
  • Marble – $.20 per ton
  • Stone – $.03 per ton
  • Sand – $.06 per ton
  • Shells – $.06 per ton
  • Salt Content in Brine (when used to make other products and not marketed as salt Lignite) – $.12 per ton
Hazardous Waste Storage and Disposal Tax7
  • Hazardous waste both generated and disposed of in the same site in Louisiana – $30 per dry-weight ton
  • Hazardous waste disposed of in Louisiana at a site other than the site where generated – $40 per dry weight ton
  • Extremely hazardous waste disposed of in Louisiana – $100 per dry weight ton
  • For hazardous wastes and extremely hazardous wastes generated outside of Louisiana and disposed of in Louisiana – The tax rate to be levied is the rate of tax or fee imposed on the disposal of such waste in the state where generated, but in no case shall the tax levied be less than the rate charged at the time of disposal for hazardous and extremely hazardous waste generated and disposed of in Louisiana
Tobacco Tax8
  • Cigars – manufacturer’s net invoice per thousand
  • Up to $120 per thousand – 8%
  • Over $120 per thousand – 20%
  • Cigarettes – $1.08 per pack
  • Smoking Tobacco – 33% of manufacturer’s net invoice price
  • Smokeless Tobacco – 20% of manufacturer’s net invoice price
Tobacco Products Permits
  • Retail Dealer Registration Certificate – $25 per year or any portion thereof issued to any dealer, not otherwise required to obtain a permit, other than a wholesale dealer or vending machine operator for each retail outlet where cigars, cigarettes, or the tobacco products are offered for sale either over the counter or by vending machine
  • Retail Dealer Permit – $75 per year or any portion thereof issued to any dealer other than a wholesale dealer or vending machine operator for each retail outlet where cigars, cigarettes, or the tobacco products are offered for sale either over the counter or by vending machine
  • Vending Machine Operator Permit – $75 per year or any portion thereof issued to a vending machine operator operating one or more vending machines.  This permit is not required for licensed wholesale dealers operating vending machines.  Permit expires on June 30 each year.
  • Vending Machine Permit – $5 per machine per year or any portion thereof issued to the vending machine operator or wholesale dealer for each vending machine with the permit to be affixed to the front surface of the vending machine.  Permit expires June 30 each year.
  • Wholesale Dealer Permit – $75 per year or any portion thereof issued to a wholesale dealer for each wholesale place of business.  Permit expires each year on December 31.
Miscellaneous Other Taxes (Not Definitive)
  • Alcoholic beverage tax and permits
  • Local amusement tax
  • Local chain store tax
  • Special license tax
  • Insurance company premiums tax
  • Transportation and communication utilities tax
  • Telecommunication Tax for the Deaf
  • Inspection & Supervision

Source: Louisiana Department of Revenue

1 http://revenue.louisiana.gov/sections/business/corp.aspx#inc
2 http://www.lma.org/Docs/OLT/tablpd.pdf
3 http://revenue.louisiana.gov/sections/business/sales.aspx
4 http://revenue.louisiana.gov/sections/individual/conuse.aspx
5 http://www.laworks.net/Downloads/UI/wts/2011ratetable.pdf
6 http://revenue.louisiana.gov/sections/business/severance.aspx
7 http://revenue.louisiana.gov/sections/business/excise.aspx#hazardous
8 http://revenue.louisiana.gov/sections/business/excise.aspx