LAC 61:I.1905 — Telephone Company Property Assessment Relief Fund

A. Telephone companies are allowed a credit for
40 percent of the total ad valorem taxes paid to political subdivisions of Louisiana on their public service properties that are assessed by the Louisiana Tax Commission at
25 percent of fair market value.
B. The credit can be taken against the following state taxes:
1. individual income tax;
2. corporation income tax; and
3. corporation franchise tax.
C. The monies to pay the credits will be taken from Telephone Company Property Assessment Relief Fund.
D. The state sales taxes collected on interstate telecommunication services will be deposited into the Telephone Company Property Assessment Relief Fund.
1. The amount state sales taxes collected on interstate telecommunications will be determined by the secretary using industry data available at the time the fund was originally created and was published by the Federal Communications Commission.
2. Based on the industry data published by the Federal Communications Commission in 1998, which was the latest available data at the time that the fund was created in 2000, 36 percent of telephone revenues in Louisiana from end-users were from interstate calling.
3. Accordingly, the Secretary of Revenue has notified the state treasurer that 36 percent of the sales tax revenue collected on telecommunication services shall be deposited to the Telephone Company Property Assessment Relief Fund.
4. This rule shall be effective July 1, 2006, in accord with Acts 2005, No. 266.
E. Documentation for Claiming the Credit
1. The following documentation shall be attached to and submitted with the return at the time of filling:
a. a copy of the ad valorem (property) tax assessment prepared by the assessor’s office;
b. a copy of the cancelled check or receipt of electronic payment for the ad valorem (property) tax assessment; and
c. a schedule stating which entity paid the tax and obtained the credit on the taxpayer’s behalf, if applicable;
2. The accrual of interest shall be suspended during any period of time that a delay in the issuance of a refund is attributable to the taxpayer’s failure to provide information or documentation required herein, as provided by R.S. 47:1624(F).