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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, 2012
SENATE BILL NO. 125
BY SENATOR PEACOCK
TAX/INCOME/PERSONAL. Phases down the highest individual income tax and estate and
trust tax rate from 6% to 4% over a four-year period starting for tax beginning in 2013.
(gov sig)
AN ACT1
To amend and reenact R.S. 47:32(A), 295(B), and 300.1, relative to income tax; to reduce2
the rate of the individual income tax and estate and trust tax; and to provide for3
related matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:32(A), 295(B), and 300.1 are hereby amended and reenacted to6
read as follows: 7
§32. 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 percent on that portion of the first twelve thousand five hundred11
dollars of net income which is in excess of the credits against net income provided12
for in R.S. 47:79;.13
(2) Four percent on the next thirty-seven thousand five hundred dollars of net14
income;.15
(3)(a) For tax years beginning on or before December 31, 2012, six16
percent on any amount of net income in excess of fifty thousand dollars of net17 SB NO. 125
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words in boldface type and underscored are additions.
income.1
(b) For tax years beginning during calendar year 2013, five and one-half2
percent on such net income.3
(c) For tax years beginning during calendar year 2014, five percent on4
such net income.5
(d) For tax years beginning during calendar year 2015, four and one-half6
percent on such net income.7
(e) For tax years beginning on and after January 1, 2016, four percent8
on any amount of net income in excess of the amount provided for in Paragraph9
(1) of this Subsection.10
* * *11
§295. Tax imposed on individuals; administration12
* * *13
B. The secretary shall establish tax tables that calculate the tax owed by14
taxpayers based upon where their taxable income falls within a range that shall not15
exceed two hundred fifty dollars. The secretary shall provide in the tax tables that the16
combined personal exemption, standard deduction, and other exemption deductions17
in R.S. 47:294 shall be deducted from the two percent bracket. If such combined18
exemptions and deductions exceed the two percent bracket, the excess shall be19
deducted from the four percent bracket. If such combined exemptions and deductions20
exceed the two and four percent brackets, the excess shall be deducted from the six21
percent the next highest bracket, if any.22
* * *23
§300.1. Tax imposed24
There is imposed an income tax for each taxable year upon the Louisiana25
taxable income of every estate or trust, whether resident or nonresident. The tax to26
be assessed, levied, collected, and paid upon the Louisiana taxable income of an27
estate or trust shall be computed at the following rates:28
(1) Two percent on the first ten thousand dollars of Louisiana taxable29 SB NO. 125
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words in boldface type and underscored are additions.
income.1
(2) Four percent on the next forty thousand dollars of Louisiana taxable2
income.3
(3)(a) For tax years beginning on or before December 31, 2012, six4
percent on Louisiana taxable income in excess of fifty thousand dollars.5
(b) For tax years beginning during calendar year 2013, five and one-half6
percent on such income.7
(c) For tax years beginning during calendar year 2014, five percent on8
such income.9
(d) For tax years beginning during calendar year 2015, four and one-half10
percent on such income.11
(e) For tax years beginning on and after January 1, 2016, four percent12
on any amount of Louisiana taxable income in excess of ten thousand dollars.13
Section 2. This Act shall become effective upon signature by the governor or, if not14
signed by the governor, upon expiration of the time for bills to become law without signature15
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If16
vetoed by the governor and subsequently approved by the legislature, this Act shall become17
effective on the day following such approval.18
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law levies an income tax on individuals at the following rates:
(1)2% on that portion of the $12,500 of net income which is in excess of the credits
against net income provided for in R.S. 47:79 (i.e. personal and dependent
exemptions).
(2)4% on the next $37,500 of net income.
(3)6% on net income in excess of $50,000.
Present law levies an income tax on estates and trusts at the following rates:
(1)2% on the $10,000 of Louisiana taxable income.
(2)4% on the next $40,000. SB NO. 125
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(3)6% on Louisiana taxable income in excess of $50,000.
Proposed law phases-down the 6% rate over a 4-year period starting for tax years beginning
in 2013, so that all income is taxed at the 4% rate, as follows:
(1)For tax years beginning during calendar year 2013, 5.5%.
(2)For tax years beginning during calendar year 2014, 4%.
(3)For tax years beginning during calendar year 2015, 4.5%.
(4)For tax years beginning on and after January 1, 2016, 4%.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Amends R.S. 47:32(A), 295(B), and 300.1)