BASIC BUSINESS TAXES

Claiborne:

Contact your city, town or village hall, http://www.lma.org/, or parish government (if outside incorporated area), http://www.lpgov.org/, for contact information.

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Property Taxes

Property taxes are levied on land, improvements, business furniture and fixtures, and inventories. The assessed valuation for tax purposes is generally 15% of market value (I0% for land and residential improvements) and is set by the Parishes Tax Assessor, subject to appeal to the Louisiana Tax Commission. Questions about the assessed value of a particular parcel should be addressed to your local tax assessor. For contact information, go to www.louisianaassessors.org/Assessors/Assessors.htm

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Sales & Use Taxes

Local – Each parish has a Sales and Use Tax Commission that collects sales taxes for the municipalities and the Parish. Any business required to collect sales taxes must register with their appropriate Commission and submit tax receipts according to the schedule established by the Commission for your business and parish. Contact: www.laota.com/pta.htm , then click on your parish for contact information. Some parishes allow you file for your sales tax number online at www.laota.com/registration/tax_application.htm

State – In addition to local sales taxes, the state collects a 4% sales tax on most retail items and certain services. You are required to register with the State of Louisiana's Department of Revenue and Taxation to receive your Sales Tax Account number, and submit your sales tax liability as required by the Department. Contact: Department of Revenue, Shreveport Office, (318) 676-7500; for application, go to www.revenue.louisiana.gov/sections/business/intro.aspx

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State Corporate Income Tax

The corporate income tax ranges from 4% to 8% of net taxable income. The effective rate of taxation is somewhat less because federal income taxes are deductible in computing Louisiana net taxable income. A partial waiver of corporate income taxes is allowable under incentive programs. Current tax rates are:

– 4% on the first $25,000

– 5% on the second $25,000

– 6% on the next $50,000

– 7% on the next $100,000 and

– 8% on the next income over $200,000

Contact: Department of Revenue, Shreveport Office, (318) 676-7500, or go to www.rev.state.la.us/sections/business/corp.aspx

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Corporate Franchise Tax

 Contact: Department of Revenue, Shreveport Office, (318) 676-7500, or go to www.rev.state.la.us/sections/business/default.asp

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Employee Taxes

All companies with employees are required to participate in the following employee tax programs:

Federal and State Income Tax Withholding

All employers are required to withhold income taxes from their employees’ wages for both the Federal and State government. To know how much income tax to withhold from employees' wages, you should have all new employees complete the appropriate forms: a Form W-4, Employee's Withholding Allowance Certificate for Federal withholding, www.irs.gov/pub/irs-pdf/fw4.pdf; Employee Withholding Exemption Certificate (L-4) for state withholding, www.revenue.louisiana.gov/sections/business/intro.aspx

Social Security and Medicare Taxes

By Federal law, all employers must withhold Social Security and Medicare taxes from an employee’s gross wages (7.65% up to a certain amount, 1.45% thereafter). The employer must also pay an equal amount for this tax. Depositing procedures vary depending upon the total amount an employer withholds from all employees. Current information on amounts to withhold as well as up-to-date employee income tax withholding taxes may be found in the IRS publication entitled Circular E, Employer’s Tax Guide. www.irs.gov/publications/p15/index.html

Unemployment Insurance

With a few exceptions, all businesses with employees must pay federal and state unemployment taxes.  The tax is the business owner’s responsibility; it is illegal to deduct this tax from an employee’s wages.  For information on  Louisiana Unemployment Compensation matters, Contact: Louisiana Department of Labor, Employer Status Unit, (866) 783-5567, http://www.laworks.net/UnemploymentInsurance/UI_Employers.asp. To register for Unemployment Insurance go to www.laworks.net/Downloads/UI/WTS/UnemploymentAccountAppES1web.pdf For Federal information, the IRS publication, Circular E, Employer’s Tax Guide, provides information on filing with the Federal government. www.irs.gov/publications/p15/index.html

Federal Unemployment (FUTA) Tax

The Federal Unemployment Tax Act (FUTA), with state unemployment systems, provides for payments of unemployment compensation to workers who have lost their jobs. Most employers pay both a Federal and a state unemployment tax. A list of state unemployment tax agencies, including addresses and phone numbers, is available in Pub. 926, Household Employer's Tax Guide. Only the employer pays FUTA tax; it is not deducted from the employee's wages. For more information, see the Instructions for Form 940. www.irs.gov/pub/irs-pdf/i940.pdf

Workers' Compensation

State law mandates that all employers must provide Workers’ Compensation insurance for their employees. Rates vary depending upon employee classifications. Contact: The Workers’ Compensation Division, Louisiana Department of Labor, Northern Division, (318) 676-5531, www.laworks.net/WorkersComp/OWC_EmployerMenu.asp

Note: An Employer Handbook, Business Owner’s Manual outlining requirements pertaining to the state Unemployment and Worker’s Compensation programs may be accessed through the Louisiana Department of Labor’s website at www.laworks.net/Downloads/Employment/EmployerHandbook.pdf

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The Coordinating and Development Corp.

5210 Hollywood Avenue, P. O. Box 37005

Shreveport, LA 71133-7005

Phone: (318) 632-2022

Fax/TDD: (318) 632-2099

E-mail: info@cdconline.org

Copyright 2008, The Coordinating and Development Corporation. Redistribution to all others interested in economic development is strongly encouraged. Please cite The Coordinating and Development Corporation whenever portions are reproduced or redirected.

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