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Louisiana “Throwout” Rule Repealed

Tax Development Jul 13, 2023

Louisiana Throwout Rule Repealed

Under previous law, the rentals, leases, and licensing of intangibles were allocated to Louisiana, not apportioned. Thus, these sales were thrown out of the Louisiana sales factor calculations. However, the throwout rule was irrelevant as allocable items are never included in the sales factor. For tax years beginning on or after January 1, 2024, the term rentals, leases, and licensing of intangibles was struck, leaving only the sales of intangibles subject to apportionment in Louisiana. These sales will be apportioned based on the market in which they are used. The enactment of Louisiana H.B. 631 repeals the state’s throwout rule for tangible property as well as intangible property.

Please reach out to Ryan tax professionals for guidance in implementing this change.


Mark Nachbar

Robin Sigur

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