La. Admin. Code tit. 7 § XXXI-513

Current through Register Vol. 50, No. 11, November 20, 2024

Section XXXI-513 - Determination of Tax Credit for Individual Producers and Eligible Quarters

A. LDAF shall, no later than April 30 of each year, provide the Department of Revenue with a chart for the previous year for which the credit is applied for showing the names of each participating certified milk producer, the amount of milk produced by each, the anticipated amount of tax credit each certified milk producer is eligible to receive, and any other information necessary or proper for the Department of Revenue to pay the tax credits.

1. Prior to submission of the chart to the Department of Revenue, a review committee composed of a person appointed by the commissioner, one person appointed by the secretary of health and hospitals, one person appointed by the secretary of revenue, and one certified milk producer appointed by the commissioner shall review and approve the chart.

B. Determination of the amount of milk produced during a calendar year by a participating certified milk producer shall be based on information obtained from the non-pooled milk certification forms and from records maintained by the milk market administrator.

C. Determination of the anticipated amount of tax credit each certified milk producer is eligible to receive shall be based on:

1. the amount of milk produced by the certified milk producer;

2. the maximum amount of tax credit the certified milk producer would be eligible to receive based on the amount of milk produced by that certified milk producer and the tax credit schedule set out in R.S. 47:6032(C);

3. if applicable, the percentage or ratio shown by dividing the statutory cap on the tax credit by the aggregate of the tax credit that all the certified milk producers would be eligible to receive if there was no statutory cap in place; and

4. the number of eligible quarters to which the tax credit shall be prorated.

a. A quarter shall be considered to be an eligible quarter for purposes of the tax credit whenever the uniform price for any one month of the quarter drops below the announced production price.

NOTE: For example, assume that a participating certified milk producer produces between 2,000,001 and 2,500,000 pounds of pooled and non-pooled milk combined for the year in which he is applying for a tax credit. He would be eligible under the statute for a maximum tax credit of $20,000, which, prorated over four quarters, would be $5,000 per quarter. If the aggregate of the tax credits that all participating certified milk producers would be entitled to for that year is equal to or less than the statutory cap of $2,500,000 and each quarter of the year is an eligible quarter then the certified milk producer in this example would receive a $20,000 tax credit. If there are only two eligible quarters in the year then the maximum tax credit he would receive would be $10,000, ($5,000 per quarter X 2).

If, however, the aggregate of the tax credits that all participating certified milk producers would be entitled to exceeds the statutory cap of $2,500,000 then all individual tax credits would have to be adjusted by a percent or ratio such that the aggregate cap of dairy tax credits for the taxable year would not exceed $2,500,000. Suppose the aggregate tax credit in this example equaled $3,100,000. Then the whole number percentage or ratio adjustment to individual tax credits necessary to maintain the aggregate tax credit for the year at or under $2,500,000 would be 80 percent. The participating certified milk producer in this example would be eligible for a maximum credit of $16,000, or $4,000 per quarter, (80% of the maximum tax credit of $20,000) if each quarter of the year is an eligible quarter. However, if there were only two eligible quarters in the year and the aggregate of the tax credits that all participating certified milk producers would be entitled to receive would, by virtue of that fact, be reduced to $2,500,000 or less then the certified milk producer in this example would be eligible to receive the non-prorated maximum tax credit for each quarter. In this example that tax credit would be $10,000, ($5,000 per quarter X 2).

La. Admin. Code tit. 7, § XXXI-513

Promulgated by the Department of Agriculture and Forestry, Office of the Commissioner LR 34:1599 (August 2008).

AUTHORITY NOTE: Promulgated in accordance with R.S. 3:2(A) and R.S. 47:6032(B).