What Louisiana credit applied when a Louisiana domiciliary working in a Washington, D.C. office of the state's congressional delegation paid income tax to a temporary-residence state?

Plain-English summary

The specified congressional staff could claim a nonrefundable Louisiana credit for net income tax imposed by and paid to their temporary-residence state on the same income Louisiana taxed.

The ruling addressed Louisiana domiciliaries working in Washington, D.C. offices of Louisiana's congressional delegation while temporarily residing in Virginia or another neighboring state.

Scope and amount

Louisiana taxed the workers on all income because they remained Louisiana domiciliaries. Their temporary-residence state also taxed their income.

With Board of Tax Appeals approval under La. R.S. 47:295, the Secretary granted a credit equal to the net income tax both imposed and paid to that temporary-residence state on income also taxed by Louisiana.

Common questions

Q: Was the credit refundable?

A: No.

Q: Did the ruling apply to every Louisiana domiciliary working outside the state?

A: No. It expressly addressed Louisiana congressional-delegation employees in the described Washington-area situation.

Q: Did the credit include tax on income Louisiana did not tax?

A: No. The ruling limited it to income also taxed by Louisiana.

Citations and references

• La. R.S. 47:295 — Secretary's waiver, reduction, or compromise authority with Board of Tax Appeals approval
• LAC 61:III.101.C — Revenue Ruling authority and reliance statement

Source

• Landing page: Louisiana Department of Revenue Policies
• Original PDF: LA Revenue Ruling 02-013

Original ruling text

evenue RevenueRRRRevenue Information Bulletin No 01-xxxx

Revenue Ruling
No. 02- 013
August 30, 2002
Individual Income Tax
Credit for Taxes Paid to Another State
Purpose: This Revenue Ruling addresses credit for taxes paid to another state in the limited situation of Louisiana domiciliaries employed in the Washington, D.C. offices of Louisiana’s congressional delegation. Analysis/Discussion: Louisiana domiciliaries employed in the Washington, D.C. offices of Louisiana’s congressional delegation are often taxed twice on their earnings. As temporary residents of Virginia, or any other neighboring state, income tax is due to that state on all of their income. In addition, as a Louisiana domiciliary, Louisiana income tax is also due on all their income. La. Rev. Stat. Ann. § 47:295(West 2001), provides that the secretary “… may, with the approval of the Board of Tax Appeals, upon making a record of his reasons therefore, waive, reduce, or compromise any of the taxes, penalties, or interest or other amounts provided by this Part.” Conclusion: In compliance with La. Rev. Stat. Ann. § 47:295(West 2001), the secretary, with the approval of the Board of Tax Appeals, has granted Louisiana domiciliaries employed in the Washington, D.C. offices of Louisiana’s congressional delegation a nonrefundable credit against Louisiana individual income tax. The amount of the credit shall be the amount of net income taxes imposed by and paid to the state of temporary residence on income also taxed by Louisiana. Cynthia Bridges Secretary By:

____
William (Mac) E. Little
Attorney
Policy Services Division

A Revenue Ruling is issued under the authority of LAC 61III.101 (C ). A Revenue Ruling is written to provide guidance to the public and to Department of Revenue employees. It is a written statement issued to apply principles of law to a specific set of facts. A Revenue Ruling does not have the force and effect of law and is not binding on the public. It is a statement of the department's position and is binding on the department until superseded or modified by a subsequent change in statute, regulation, declaratory ruling, or court decision.