Louisiana high court: 2015 tax break change unconstitutional
BATON ROUGE, La. (AP) - The Louisiana Supreme Court says a 2015 state law that scaled back an income tax break that the state allows for taxes paid to other states was unconstitutional.
Two taxpayers that are part-owners of multiple companies doing business in Texas, Arkansas and Louisiana challenged the law. The Supreme Court on Friday upheld a lower court decision that the law violates a U.S. Constitution provision governing commerce.
The state collected an estimated $30 million a year since the change was made. But Revenue Secretary Kimberly Robinson said Monday that Louisiana only will have to repay the $23,000 the taxpayers who filed the lawsuit paid into an escrow account under protest.
Robinson told the state's income forecasting panel that lawmakers tweaked the provision earlier this year to address the lawsuit's claims.
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