As we approach the year-end, taxpayers should consider the following amendments to regulations made by the Louisiana Department of Revenue earlier this year that go into effect today and on January 1st and the emergency rule regarding the following real and personal property regulations: LAC 61:V.703, 705, 901, 903, 907, 1007, 1103, 1301, 1303, 1307, 1503, 2501, 2503 and 3103 also effective on January 1st.
The Department amended the regulations for corporations electing pass-through entity status and nonresident net operating losses earlier this year. The amendment provides detail about what information and documentation taxpayers claiming the pass-through entity exclusion and nonresident individuals reporting a net operating loss must maintain. The Department also issued a similar amendment to the rule for personal income taxes. The rule will take effect December 20, 2024.
The Department also amended a rule to require severers and purchasers of timber to electronically file and pay their severance tax returns and corresponding liability. The amended rule will take effect January 1, 2025 and failure to comply will incur additional penalties.
Finally, the Department issued an emergency rule concerning the timely distribution of ad valorem tax assessment tables to property owners and local tax assessors by the statutory valuation date of January 2025. The rule updates the procedures for determining the fair market value of oil and gas properties, pipelines, office furniture and equipment, machinery, and other assets used in general business operations. It also outlines reporting requirements for oil and gas properties, addresses the valuation of oil, gas, and brine operation wells, and updates provisions related to the public disclosure of assessments and appeals. The emergency rule revises the tables for watercraft, vessels, drilling rigs and related equipment, pipeline transportation, aircraft (including helicopters), and the determination of economic lives, percent good, and composite multipliers for business and industrial personal property. This rule will take effect on January 1, 2025.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
