§53.5. Exclusions from gross income; compensation for disaster services; out-of-state employees and nonresident corporations; limitations

A.(1) There shall be excluded from the gross income of a nonresident business that performs disaster or emergency-related work within the state during a declared state disaster or emergency period all income received for disaster or emergency-related work conducted in this state during the disaster period. The nonresident business shall not be considered to have established a level of presence that would require the business to register, file, or remit the taxes imposed by Chapter 1 of Subtitle II of this Title to this state.

(2) There shall be excluded from the gross income of an out-of-state employee, compensation for personal services rendered by a nonresident individual who is an out-of-state employee during a declared state disaster or emergency. The out-of-state employee shall not be considered to have established residency or a presence in the state that would require the employee or the employee's employer to file and pay income taxes, to be subject to tax withholdings, or to be required to file and pay any other state or local tax or fee during the disaster period. The out-of-state employee and the employee's employer shall also be exempt from any related state or local employer withholding and remittance obligations.

B. For purposes of this Section, the following terms shall have the following meanings:

(1) "Critical infrastructure" means equipment and property that is owned or used by a communications provider or cable operator or for communications networks, electric generation, electric transmission and distribution systems, natural gas and natural gas liquids gathering, processing, and storage, transmission and distribution systems, and water pipelines and related support facilities, equipment, and property that serve multiple persons, including buildings, offices, structures, lines, poles, and pipes.

(2) "Declared state disaster or emergency" means any of the following disaster or emergency events:

(a) A disaster or emergency declared by executive order or proclamation by the governor pursuant to Chapter 6 of Title 29 of the Louisiana Revised Statutes of 1950.

(b) A disaster or emergency for which a federal declaration has been issued by the president.

(c) An event within the state for which a good-faith response is required and for which a registered business notifies the governor or appropriate local official of the event and the governor or appropriate local official declares a disaster or emergency under Chapter 6 of Title 29 of the Louisiana Revised Statutes of 1950.

(3) "Disaster or emergency-related work" means repairing, renovating, installing, building, rendering services, or other business activities that relate to critical infrastructure that has been damaged, impaired, or destroyed by the declared state disaster or emergency.

(4) "Disaster period" means a period that begins within ten days of the first day of the governor's declaration, the president's declaration or designation, or declaration by any other authorized state official or appropriate local government official, as set forth in this Section, whichever occurs first, and that extends for a period of sixty calendar days after the end of the declared disaster or emergency period, or any longer period authorized by the designated state official, agency, or local government.

(5)(a) "Nonresident business" means a business entity whose services are requested by a registered business in the state or by a state or local government for purposes of performing disaster or emergency-related work in the state and that prior to the declared state of emergency, the nonresident business was not registered to do business in this state, had no employees, agents, or independent contractors in this state, was not transacting business in this state, and has not filed and is not required to file any state or local tax return in this state.

(b) For purposes of this Paragraph, "nonresident business" shall include a business entity that is affiliated with a registered business in this state solely through common ownership.

(6) "Out-of-state employee" means a nonresident individual who does not provide services or activities in this state, except for disaster or emergency-related work during a disaster period.

(7) "Registered business in the state" means a business entity that is registered to do business in the state and was registered prior to a declared state of emergency.

C.(1) Nonresident businesses and out-of-state employees shall be required to pay transaction taxes and fees including but not limited to taxes on motor fuels, hotel occupancy taxes, car rental taxes, fees, or other sales and use taxes on purchases or services made in the state during the disaster period, unless these taxes are otherwise exempted during the disaster period.

(2) Upon request by the secretary of the Department of Revenue, any registered business in the state that requests any nonresident business to perform disaster or emergency-related work shall provide written notice to the secretary of the Department of Revenue within the disaster period. The written notice shall include the following:

(a) The name, address, and federal tax identification number of the nonresident business.

(b) The date of the request to the nonresident business to perform disaster or emergency-related work.

(c) The date and declaration number of the declared state disaster or emergency.

(d) A general description of the disaster or emergency-related work requested.

D. Any nonresident business or out-of-state employee that remains in the state after the disaster period shall be subject to the state's normal standards for establishing presence, residency, or doing business in the state and shall be subject to and responsible for any business or employee tax requirements that ensue.

E. The secretary of the Department of Revenue may promulgate rules and regulations in accordance with the Administrative Procedure Act as are necessary to implement the provisions of this Section including, but not limited to rules to develop and issue forms or establish online processes.

Acts 2017, No. 358, §1, eff. July 1, 2017.