Supreme Court of Louisiana
Ivan I. Smith, Jr. and Gloria G. Smith v. Kimberly L. Robinson
December 5, 2018265 So. 3d 740
Summary
The court held that the Texas franchise tax paid by the taxpayers' pass-through entities qualifies as an income tax for purposes of Louisiana's out-of-state tax credit statute. It further held that the reciprocal-credit requirement in La.R.S. 47:33(A)(4) is unconstitutional because it causes impermissible double taxation of interstate income and discriminates against interstate commerce. On rehearing, the court limited its ruling to Subsection (A)(4) and expressly declined to decide the validity of Subsections (A)(5) and (A)(6).