SLS 11RS-443 ORIGINAL
Page 1 of 2
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. 198
BY SENATOR ERDEY
TAX EXEMPTIONS. Phases-in an exemption of investment income of those 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; to exempt investment income2
for certain persons from state income taxation; to provide a phase-in for the3
exemption of investment income over a period of five years; to provide for an4
effective date; and to provide for 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. Investment income; exemption from taxation8
A. Investment 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 for the following tax years and 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. 198
SLS 11RS-443 ORIGINAL
Page 2 of 2
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, "investment income" shall include5
dividend and interest income from certificates of deposit, mutual funds, stocks6
and bonds, mortgages, and notes receivables held by an individual sixty-five7
years of age or older.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
Proposed law exempts investment income for individuals 65 years of age or older from state
income tax.
Proposed law provides that the exemption of the investment income shall be phased-in over
a five year period as follows:
(1)For tax years beginning in 2011, 20% of the investment income.
(2)For tax years beginning in 2012, 40% of the investment income.
(3)For tax years beginning in 2013, 60% of the investment income.
(4)For tax years beginning in 2014, 80% of the investment income.
(5)For tax years beginning on January 1, 2015 and after, 100% of the investment
income.
Proposed law further provides that investment income shall include dividend and interest
income from certificate of deposits, mutual funds, stocks and bonds, mortgages, and notes
receivables.
Effective for all taxable periods beginning after Dec. 31, 2010.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:297.13)