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Regular Session, 2011
SENATE BILL NO. 259
BY SENATOR MARIONNEAUX
TAX/TAXATION. Phases out the state personal and corporate state income taxes. (8/15/11)
AN ACT1
To amend and reenact R.S. 47:32(A) and (C) and to enact R.S. 47:32(D), relative to income2
taxes; to phase out the taxes on personal and corporate income; and to provide for3
related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:32(A) and (C) are hereby amended and reenacted and R.S.6
47:32(D) is hereby enacted to read as follows: 7
ยง32. Rates of tax8
A. On individuals. The tax to be assessed, levied, collected and paid upon the9
taxable income of an individual shall be computed at the following rates:10
(1) Two For tax years commencing prior to January 1, 2011, two percent11
on that portion of the first twelve thousand five hundred dollars of net income which12
is in excess of the credits against net income provided for in R.S. 47:79; for the tax13
year commencing in 2011, one and six/tenths percent; for the tax year14
commencing in 2012, one and two/tenths percent; for the tax year commencing15
in 2013, eight/tenths percent; and for the tax year commencing in 2014,16
four/tenths percent.17 SB NO. 259
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(2) Four For tax years commencing prior to January 1, 2011, four percent1
on the next thirty-seven thousand five hundred dollars of net income; for the tax2
year commencing in 2011, three and two/tenths percent; for the tax year3
commencing in 2012, two and four/tenths percent; for the tax year commencing4
in 2013, one and six/tenths percent; and for the tax year commencing in 2014,5
eight/tenths percent.6
(3) Six For tax years commencing prior to January 1, 2011, six percent7
on any amount of net income in excess of fifty thousand dollars of net income; for8
the tax year commencing in 2011, four and eight/tenths percent; for the tax year9
commencing in 2012, three and six/tenths percent; for the tax year commencing10
in 2013, two and four/tenths percent; and for the tax year commencing in 2014,11
one and two/tenths percent.12
* * *13
C. On corporations. The tax to be assessed, levied, collected, and paid upon14
the net income of every corporation shall be computed at the rate of:15
(1) Four For tax years commencing prior to January 1, 2011, four16
percentum upon the first twenty-five thousand dollars of net income; for the tax17
year commencing in 2011, three and two/tenths percent; for the tax year18
commencing in 2012, two and four/tenths percent; for the tax year commencing19
in 2013, one and six/tenths percent; and for the tax year commencing in 2014,20
eight/tenths percent.21
(2) Five For tax years commencing prior to January 1, 2011, five22
percentum upon the amount of net income above twenty-five thousand dollars but23
not in excess of fifty thousand dollars; for the tax year commencing in 2011, four24
percent; for the tax year commencing in 2012, three percent; for the tax year25
commencing in 2013, two percent; and for the tax year commencing in 2014, one26
percent.27
(3) Six For tax years commencing prior to January 1, 2011, six28
percentum on the amount of net income above fifty thousand dollars but not in29 SB NO. 259
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excess of one hundred thousand dollars; for the tax year commencing in 2011, four1
and eight/tenths percent; for the tax year commencing in 2012, three and2
six/tenths percent; for the tax year commencing in 2013, two and four/tenths3
percent; and for the tax year commencing in 2014, one and two/tenths percent.4
(4) Seven For tax years commencing prior to January 1, 2011, seven5
percentum on the amount of net income above one hundred thousand dollars but not6
in excess of two hundred thousand dollars; for the tax year commencing in 2011,7
five and six/tenths percent; for the tax year commencing in 2012, four and8
two/tenths percent; for the tax year commencing in 2013, two and eight/tenths9
percent; and for the tax year commencing in 2014, one and four/tenths percent.10
(5) Eight For tax years commencing prior to January 1, 2011, eight11
percentum on all net income in excess of two hundred thousand dollars; for the tax12
year commencing in 2011, six and four/tenths percent; for the tax year13
commencing in 2012, four and eight/tenths percent; for the tax year14
commencing in 2013, three and two/tenths percent; and for the tax year15
commencing in 2014, one and six/tenths percent.16
D. No tax shall be assessed, levied, collected, or paid upon the income of17
an individual or a corporation for any tax year commencing on or after January18
1, 2015.19
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Marionneaux (SB 259)
Present law provides tax rates on personal and corporate income as follows:
Individual rates
2% of the first $12,500 of net income which is in excess of the credits against net
income provided for in present law.
4%percent on the next $37,500 of net income.
6% on any amount of net income in excess of $50,000 of net income.
Corporate rates
4% on the first $25,000 of net income.
5% on the amount of net income above $25,000 but not in excess of $50,000.
6% on the amount of net income above $50,000 but not in excess of $100,000.
7% on the amount of net income above $100,000 but not in excess of $200,000. SB NO. 259
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8% on all net income in excess of $200,000.
Proposed law, relative to the tax rates on individual income provides that:
A. On that portion of the first $12,500 of net income which is in excess of the credits
against net income provided for in present law:
(1) For the tax year commencing in 2011, 1.6%.
(2) For the tax year commencing in 2012, 1.2%.
(3) For the tax year commencing in 2013, .8%.
(4) For the tax year commencing in 2014, .4%.
B. On the next $37,500 of net income:
(1) For the tax year commencing in 2011, 3.2%.
(2) For the tax year commencing in 2012, 2.4%.
(3) For the tax year commencing in 2013, 1.6%.
(4) For the tax year commencing in 2014, .8%.
C. On any amount of net income in excess of $50,000 of net income:
(1) For the tax year commencing in 2011, 4.8%.
(2) For the tax year commencing in 2012, 3.6%.
(3) For the tax year commencing in 2013, 2.4%.
(4) For the tax year commencing in 2014, 1.3%.
Proposed law, relative to the tax rates on corporate income provides that:
A. On the first $25,000:
(1) For the tax year commencing in 2011, 3.2%.
(2) For the tax year commencing in 2012, 2.4%.
(3) For the tax year commencing in 2013, 1.6%.
(4) For the tax year commencing in 2014, .8%.
B. On the amount of net income above $25,000 but not in excess of $50,000:
(1) For the tax year commencing in 2011, 4%.
(2) For the tax year commencing in 2012, 3%.
(3) For the tax year commencing in 2013, 2%.
(4) For the tax year commencing in 2014, 1%.
C. On the amount of net income above $50,000 but not in excess of $100,000:
(1) For the tax year commencing in 2011, 4.8%.
(2) For the tax year commencing in 2012, 3.6%.
(3) For the tax year commencing in 2013, 2.4%.
(4) For the tax year commencing in 2014, 1.2%.
D. On the amount of net income above $100,000 but not in excess of $200,000:
(1) For the tax year commencing in 2011, 5.6%.
(2) For the tax year commencing in 2012, 4.2%.
(3) For the tax year commencing in 2013, 2.8%.
(4) For the tax year commencing in 2014, 1.4%.
E. On all net income in excess of $200,00: SB NO. 259
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words in boldface type and underscored are additions.
(1) For the tax year commencing in 2011, 6.4%.
(2) For the tax year commencing in 2012, 4.8%.
(3) For the tax year commencing in 2013, 3.2%.
(4) For the tax year commencing in 2014, 1.6%.
Proposed law provides that no tax shall be assessed, levied, collected, or paid upon the
income of an individual or a corporation for any tax year commencing on or after 1/1/15.
Effective August 15, 2011.
(Amends R.S. 47:32(A) and (C); adds R.S. 47:32(D))