§ 47:53.5 — Exclusions from gross income; compensation for disaster services; out-of-state

Louisiana § 47:53.5

• Jurisdiction: Louisiana
• Title 47: Revenue and Taxation

Text

§53.5. Exclusions from gross income; compensation for disaster services; out-of-state
employees and nonresident corporations; limitations
A.(1) There shall be excluded from the gross income of a nonresident business that
performs disaster or emergency-related work within the state during a declared state disaster
or emergency period all income received for disaster or emergency-related work conducted
in this state during the disaster period. The nonresident business shall not be considered to
have established a level of presence that would require the business to register, file, or remit
the taxes imposed by Chapter 1 of Subtitle II of this Title to this state.
(2) There shall be excluded from the gross income of an out-of-state employee,
compensation for personal services rendered by a nonresident individual who is an out-of-state employee during a declared state disaster or emergency. The out-of-state employee
shall not be considered to have established residency or a presence in the state that would
require the employee or the employee's employer to file and pay income taxes, to be subject
to tax withholdings, or to be required to file and pay any other state or local tax or fee during
the disaster period. The out-of-state employee and the employee's employer shall also be
exempt from any related state or local employer withholding and remittance obligations.
B. For purposes of this Section, the following terms shall have the following
meanings:
(1) "Critical infrastructure" means equipment and property that is owned or used by
a communications provider or cable operator or for communications networks, electric
generation, electric transmission and distribution systems, natural gas and natural gas liquids
gathering, processing, and storage, transmission and distribution systems, and water pipelines
and related support facilities, equipment, and property that serve multiple persons, including
buildings, offices, structures, lines, poles, and pipes.
(2) "Declared state disaster or emergency" means any of the following disaster or
emergency events:
(a) A disaster or emergency declared by executive order or proclamation by the
governor pursuant to Chapter 6 of Title 29 of the Louisiana Revised Statutes of 1950.
(b) A disaster or emergency for which a federal declaration has been issued by the
president.
(c) An event within the state for which a good-faith response is required and for
which a registered business notifies the governor or appropriate local official of the event and
the governor or appropriate local official declares a disaster or emergency under Chapter 6
of Title 29 of the Louisiana Revised Statutes of 1950.
(3) "Disaster or emergency-related work" means repairing, renovating, installing,
building, rendering services, or other business activities that relate to critical infrastructure
that has been damaged, impaired, or destroyed by the declared state disaster or emergency.
(4) "Disaster period" means a period that begins within ten days of the first day of
the governor's declaration, the president's declaration or designation, or declaration by any
other authorized state official or appropriate local government official, as set forth in this
Section, whichever occurs first, and that extends for a period of sixty calendar days after the
end of the declared disaster or emergency period, or any longer period authorized by the
designated state official, agency, or local government.
(5)(a) "Nonresident business" means a business entity whose services are requested
by a registered business in the state or by a state or local government for purposes of
performing disaster or emergency-related work in the state and that prior to the declared state
of emergency, the nonresident business was not registered to do business in this state, had
no employees, agents, or independent contractors in this state, was not transacting business
in this state, and has not filed and is not required to file any state or local tax return in this
state.
(b) For purposes of this Paragraph, "nonresident business" shall include a business
entity that is affiliated with a registered business in this state solely through common
ownership.
(6) "Out-of-state employee" means a nonresident individual who does not provide
services or activities in this state, except for disaster or emergency-related work during a
disaster period.
(7) "Registered business in the state" means a business entity that is registered to do
business in the state and was registered prior to a declared state of emergency.
C.(1) Nonresident businesses and out-of-state employees shall be required to pay
transaction taxes and fees including but not limited to taxes on motor fuels, hotel occupancy
taxes, car rental taxes, fees, or other sales and use taxes on purchases or services made in the
state during the disaster period, unless these taxes are otherwise exempted during the disaster
period.
(2) Upon request by the secretary of the Department of Revenue, any registered
business in the state that requests any nonresident business to perform disaster or
emergency-related work shall provide written notice to the secretary of the Department of
Revenue within the disaster period. The written notice shall include the following:
(a) The name, address, and federal tax identification number of the nonresident
business.
(b) The date of the request to the nonresident business to perform disaster or
emergency-related work.
(c) The date and declaration number of the declared state disaster or emergency.
(d) A general description of the disaster or emergency-related work requested.
D. Any nonresident business or out-of-state employee that remains in the state after
the disaster period shall be subject to the state's normal standards for establishing presence,
residency, or doing business in the state and shall be subject to and responsible for any
business or employee tax requirements that ensue.
E. The secretary of the Department of Revenue may promulgate rules and regulations
in accordance with the Administrative Procedure Act as are necessary to implement the
provisions of this Section including, but not limited to rules to develop and issue forms or
establish online processes.

Legislative History

Acts 2017, No. 358, §1, eff. July 1, 2017.