SLS 11RS-444 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Regular Session, 2011
SENATE BILL NO. 197
BY SENATOR ERDEY
TAX EXEMPTIONS. Phases in an exemption of certain capital gains income of individuals
65 years of age or older from state individual income tax. (gov sig)
AN ACT1
To enact R.S. 47:297.13, relative to the individual income tax; phases in an exemption of2
capital gains income of certain persons from state income taxation; to provide with3
respect to terms and definitions; to provide for an effective date; and to provide for4
related matters.5
Be it enacted by the Legislature of Louisiana:6
Section 1. R.S. 47:297.13 is hereby enacted to read as follows: 7
ยง297.13. Capital gains income; exemption from taxation8
A. Capital gains income received by an individual sixty-five years of age9
or older shall be exempt from state income taxation. The exemption shall be10
phased-in using the following percentages:11
(1) For tax years beginning in 2011, twenty percent of the investment12
income.13
(2) For tax years beginning in 2012, forty percent of the investment14
income.15
(3) For tax years beginning in 2013, sixty percent of the investment16
income.17 SB NO. 197
SLS 11RS-444 ENGROSSED
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
(4) For tax years beginning in 2014, eighty percent of the investment1
income.2
(5) For tax years beginning on January 1, 2015 and after, one hundred3
percent of the investment income.4
B. For purposes of this Section, "capital gains income" consists of net5
long-term capital gains as defined in the Federal Internal Revenue Code and6
properly reported on Schedule D of Form 1040, line 15, filed by the individual7
for the same tax year.8
Section 2. This Act shall become effective upon signature by the governor or, if not9
signed by the governor, upon expiration of the time for bills to become law without signature10
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If11
vetoed by the governor and subsequently approved by the legislature, this Act shall become12
effective on the day following such approval.13
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Angela L. De Jean.
DIGEST
Erdey (SB 197)
Proposed law exempts capital gains income for individuals 65 years of age or older from
state income tax.
Proposed law provides that the exemption of the capital gains income shall be phased-in over
a five year period as follows:
(1)For tax years beginning in 2011, 20% of the capital gains income.
(2)For tax years beginning in 2012, 40% of the capital gains income.
(3)For tax years beginning in 2013, 60% of the capital gains income.
(4)For tax years beginning in 2014, 80% of the capital gains income.
(5)For tax years beginning on January 1, 2015 and after, 100% of the capital gains
income.
Proposed law further provides that capital gains income consists of net long-term capital
gains as defined in the Federal Internal Revenue Code and properly reported on Schedule
D of Form 1040, line 15, filed by the individual for the same tax year.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:297.13)