Certain insurance companies are subject to special rules that require them to compute Louisiana income tax on net income as determined under Louisiana law, rather than on the basis of federal taxable income. Certain corporations that receive special treatment for federal income tax purposes do not receive such treatment for Louisiana income tax purposes. Ad Valorem Property Tax Property tax is imposed at the local level in accordance with the law that formerly imposed a state property tax. The property tax applies not only to real estate and tangible personal property, but also to certain intangible property. Under Louisiana law, the property tax generally is assessed on a percentage of the fair market value of property subject to tax.
Local assessors determine the fair market value of immovable property.
While property tax assessment and collection is a local matter, a state tax commission generally oversees the local assessors, and must approve and can modify local assessments. Ad valorem taxes on business inventories which are levied at the parish level can be credited against the state corporate and personal income taxes and the corporation franchise tax. The business paying inventory taxes to local parish taxing authorities is entitled to a refund for any credit which exceeds the aggregate state tax liability. Exemptions from property taxes are offered as incentives for new and expanded manufacturing plants, machinery, and equipment. Both Louisiana and non-Louisiana corporations that do business in the state, or which are qualified to do business in the state, or that own or use any of their capital, plant, or other property in Louisiana, must pay an annual corporation franchise tax.