Spotlight: Louisiana Supreme Court Declares Louisiana Tax Law Act 109 Unconstitutional

Louisiana Supreme Court Declares Louisiana Tax Law Act 109 Unconstitutional

12.10.18

On December 5, 2018, the Louisiana Supreme Court ruled in favor of Louisiana taxpayers confirming a lower court ruling that Act 109, legislation amending La. R.S. 47:33, a state income tax statute that provides a credit to taxpayers for income taxes paid in other states, is unconstitutional.  Liskow handled this litigation for the taxpayers from the ruling of the Nineteenth Judicial District Court for the Parish of East Baton Rouge through the Louisiana Supreme Court decision confirming that Act 109 discriminates against interstate commerce in violation of the Commerce Clause of the United States Constitution.

During the 2015 regular session, the Louisiana Legislature passed Act 109, which restricted the Louisiana individual income tax credit for out-of-state taxes paid on out-of-state income.  Under Act 109, some Louisiana residents who earned out-of-state income and paid taxes in those states where such income was earned were subjected to double taxation.  

Attorneys Robert Angelico, Jim Exnicios, Cheryl Kornick, RJ Marse, and Jeff Birdsong handled the matter for the taxpayers.