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Louisiana: New Law Repeals Sales Factor Throwout Rule and Revises Market-Based Sourcing Provisions
H.B. 631, signed by gov. 6/27/23. Applicable to tax years beginning on or after January 1, 2024, new law repeals Louisiana’s requirement that a sale be excluded from the state corporate income tax sales factor numerator and denominator if the taxpayer is not taxable in a state to which a sale is assigned or if the state of assignment cannot be determined or reasonably approximated. The legislation also makes some changes to Louisiana’s market-based sourcing provisions, including removing the exclusion of sales of intangible property in calculating the sales factor.
See recently issued Multistate Tax Alert for more details on this legislation, and please contact us with any questions.
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