OCCUPATIONAL
LICENSE TAXES
Occupational Licenses are essentially taxes
on the gross receipts of various classes of businesses and professions.
There are virtually no exemptions, except that there is a minimum and
maximum tax which may be paid by an individual or firm.
Occupational license taxes are payable
on a sliding scale, depending upon the gross receipts of the business
or profession. Some representative tax ranges are shown below:
| Retailers: |
$50
- $6,200 (generally about .1% of sales) |
| Wholesalers: |
$50 - $7,500 (generally
less than 0.05% of sales) |
| Professionals: |
1/10 of 1% (.001)
of gross |
Manufacturers are not required to pay occupational
license taxes (except on retail sales). The statute governing occupational
license taxes is rather complicated. For more precise information about
the amount of occupational license tax owed by your business, please
contact the City's Revenue Division at the address shown below.
City occupational license taxes are paid
annually to the City's Department of Finance. Tax notices are generally
mailed in December or January, with the tax due before March 1 each
year. A business beginning operation must also obtain an occupational
license, with the fee pro-rated based on the number of days remaining
in the year and the anticipated gross sales of the business. Click
<here>
for applications
for occupational licenses and other information on
occupational license tax or call:
Finance Department
(318) 673-5500
NOTE: Occupational License Taxes are not
to be confused with Certificates of Occupancy. Requirements for the
Certificates of Occupancy are found in Section 3. Permits & License
Section. In some cases, Certificates of Occupancy MUST be obtained before
you apply for an Occupational License.
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Property taxes are levied on land, improvements,
business furniture and fixtures, and inventories. The assessed valuation
for tax purposes is generally 15% of market value (I0% for land and
residential improvements) and is set by the Caddo Parish Tax Assessor,
subject to appeal to the Louisiana Tax Commission. All property within
Caddo Parish must (by state law) be reassessed every four years. There
are currently no state property taxes in Louisiana. For the current
property millage rates, or questions about the assessed value of a particular
parcel, contact:
Caddo Parish Tax Assessor
(318) 227-6701
City and Downtown Development
Authority (Central Business District) property tax notices
are generally mailed in mid-November, with the tax due on December
31. These taxes are collected by the City of Shreveport's Finance
Department.
Information about property taxes payable on a particular
piece of property can be obtained from:
City's Revenue Division (318) 673-5500
All other local property taxes are collected
each December by the Caddo Parish Sheriff in his designated role as
Tax Collector. Information about the property taxes payable on a particular
piece of property can be obtained from:
Sheriff’s Office
(318) 681-0638
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Local – The Caddo-Shreveport
Sales and Use Tax Commission collects sales taxes for the local tax districts
in the City of Shreveport and Caddo Parish. Any business required to collect
sales taxes must register with this Commission, and submit tax receipts
according to the schedule established by the Commission for your business.
The City and Caddo Parish’s combined sales tax rate is 4.60%. Contact:
Caddo-Shreveport Sales and Use Tax Commission, (318) 865-3312,
www.laota.com/parish2/Caddo_Parish.html.
State – In addition
to local sales taxes, the state collects a 4% sales tax on most retail
items and certain services. You are required to register with the State
of Louisiana's Department of Revenue and Taxation to receive your Sales
Tax Account number, and submit your sales tax liability as required
by the Department. Contact: Louisiana Department of Revenue
and Taxation, Shreveport Office, (318) 676-7500, www.rev.state.la.us.
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The corporate income tax ranges from 4% to 8% of net
taxable income. The effective rate of taxation is somewhat less because
federal income taxes are deductible in computing Louisiana net taxable
income. A partial waiver of corporate income taxes is allowable under
incentive programs. Current tax rates are:
| |
4% on the first $25,000 |
|
| |
5% on the second $25,000 |
|
| |
6% on the next $50,000 |
|
| |
7% on the next $100,000 and |
|
| |
8% on the next income over $200,000 |
Louisiana Department of
Revenue and Taxation, Shreveport Office, (318) 676-7500,
www.rev.state.la.us.
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The rate is $1.50 per $1,000 on first $300,000
of capital stock, surplus, undivided profits, and borrowed capital employed
in Louisiana; $3 per $1,000 after first $300,000. Credits and exemptions
available through various state tax incentive programs. Louisiana
Department of Revenue and Taxation, Shreveport Office, (318) 676-7500,
www.rev.state.la.us.
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All companies with employees are required
to participate in the following employee tax programs:
- Federal and State Income
Tax Withholding – All employers are required to withhold
income taxes from their employees’ wages for both the Federal
and State government. To know how much income
tax to withhold from employees' wages, you should have all new employees
complete the appropriate forms: a Form W-4, Employee's
Withholding Allowance Certificate for Federal withholding,
www.irs.gov; R-1300
- Employee Withholding Exemption Certificate
(L- 4) for state withholding, www.rev.state.la.us.
- Social Security and Medicare
Taxes – By Federal law, all employers must withhold
Social Security and Medicare taxes from an employee’s gross
wages (7.65% up to a certain amount, 1.45% thereafter). The employer
must also pay an equal amount for this tax. Depositing procedures
vary depending upon the total amount an employer withholds from
all employees. Current information on amounts to withhold as well
as up-to-date employee income tax withholding taxes may be found
in the IRS publication entitled Circular E, Employer’s
Tax Guide, www.irs.gov.
- Unemployment Compensation
– With a few exceptions, all businesses with employees
must pay federal and state unemployment taxes. The tax is the business
owner’s responsibility; it is illegal to
deduct this tax from an employee’s wages. For information
on Louisiana Unemployment Compensation matters, contact: Louisiana
Department of Labor, Unemployment Insurance Field Audit Office,
2900 Dowdell, Shreveport, LA 71103, (318) 676-7703. For
Federal information, the IRS publication, Circular E, Employer’s
Tax Guide, provides information on filing with the Federal
government. www.irs.gov.
- Federal Unemployment (FUTA)
Tax – The Federal Unemployment Tax Act (FUTA), with
state unemployment systems, provides for payments of unemployment
compensation to workers who have
lost their jobs. Most employers pay both a Federal and a state unemployment
tax. A list of state unemployment tax agencies, including addresses
and phone numbers, is available in Pub. 926, Household
Employer's Tax Guide. Only the employer pays FUTA tax; it is not
deducted from the employee's wages. For more information, see the
Instructions for Form 940, www.irs.gov.
- Workers’ Compensation
– State law mandates that all employers must provide Workers’
Compensation insurance for their employees. Rates vary depending
upon employee classifications. For information, Contact:
Workers’ Compensation Division, Louisiana Department of Labor,
Northern Division, (318) 676-5531, www.ldol.state.la.us.
Note: An Employer Handbook, Business Owner’s
Manual outlining requirements pertaining to the state Unemployment
and Worker’s Compensation programs may be accessed through
the Louisiana Department of Labor’s website at www.ldol.state.la.us/forms/er/EmployerHandbook.pdf
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