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Regular Session, 2013
HOUSE BILL NO. 639
BY REPRESENTATIVE ROBIDEAUX
TAX/INCOME TAX: Repeals the state tax levied on the taxable income of individuals
AN ACT1
To amend and reenact R.S. 47:31, 32, 181, and 241 and to repeal R.S. 47:101(A), 112, 116,2
201, 290, 292, 295, 300.1, and 300.2, relative to individual income tax; to repeal the3
tax imposed on the income of individuals and estates; to repeal provisions relative4
to the administration and filing of such taxes; to provide for effectiveness; and to5
provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:31, 32, 181, and 241 are hereby amended and reenacted to read8
as follows:9
§31. Individuals, corporations Corporations and trusts subject to tax 10
There shall be levied, collected, and paid for each taxable year a tax upon the11
net income of residents and nonresidents, estates, trusts and corporations, as12
hereinafter provided. 13
(1) Resident individuals. Every person residing within the state, or the14
personal representative in the event of death, shall pay a tax on net income from15
whatever source derived, except as hereinafter exempted.16
Every natural person domiciled in the state, and every other natural person17
who maintains a permanent place of abode within the state or who spends in the18
aggregate more than six months of the taxable year within the state, shall be deemed19 HLS 13RS-902 ORIGINAL
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to be a resident of this state for the purpose of determining liability for income taxes1
under this Chapter. 2
(2) Nonresident individuals. Every nonresident shall pay a tax upon such net3
income as is derived from property located, or from services rendered, or from4
business transacted within the state, or from sources within the state, except as5
hereinafter exempted. 6
(3) Corporations. Corporations shall be taxed on net income from sources7
within the state, as hereinafter set out. 8
(4) (2) Domestic real estate investment trusts. Trusts shall be taxed on net9
income from whatever source derived, except as otherwise exempted. 10
(5) (3) Foreign real estate investment trusts. Foreign real estate investment11
trusts shall be taxed on net income from sources within the state, as hereinafter set12
out. 13
§32. Rates of tax14
A. On individuals. The tax to be assessed, levied, collected and paid upon15
the taxable income of an individual shall be computed at the following rates:16
(1) Two percent on that portion of the first twelve thousand five hundred17
dollars of net income which is in excess of the credits against net income provided18
for in R.S. 47:79;19
(2) Four percent on the next thirty-seven thousand five hundred dollars of20
net income;21
(3) Six percent on any amount of net income in excess of fifty thousand22
dollars of net income.23
B. Joint returns of individuals. In the case of a joint return of husband and24
wife under R.S. 47:101B, the combined tax under Sub-section A of this Section shall25
be twice the combined tax that would be determined if the net income and the26
applicable credits against net income provided by R.S. 47:79 were reduced by27
one-half.28 HLS 13RS-902 ORIGINAL
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C. On corporations. The tax to be assessed, levied, collected, and paid upon1
the net income of every corporation shall be computed at the rate of:2
(1) Four percentum upon the first twenty-five thousand dollars of net3
income.4
(2) Five percentum upon the amount of net income above twenty-five5
thousand dollars but not in excess of fifty thousand dollars.6
(3) Six percentum on the amount of net income above fifty thousand dollars7
but not in excess of one hundred thousand dollars.8
(4) Seven percentum on the amount of net income above one hundred9
thousand dollars but not in excess of two hundred thousand dollars.10
(5) Eight percentum on all net income in excess of two hundred thousand11
dollars.12
* * *13
§181. Imposition of tax on estates and trusts 14
A. Application of tax. The taxes imposed by this Chapter upon individuals15
shall apply to the income of estates or of any kind of property held in trust including:16
(1) Income accumulated in trust for the benefit of unborn or unascertained17
person or persons with contingent interests, and incomes accumulated or held for18
future distribution under the terms of will or trust; 19
(2) Income which is to be distributed currently by the fiduciary to the20
beneficiaries, and income collected by a tutor of a minor which is to be held or21
distributed as the court may direct; 22
(3) Income received by estates of deceased persons during the period of23
administration or settlement of the estate; and 24
(4) Income which, in the discretion of the fiduciary, may be either distributed25
to the beneficiaries or accumulated.26
B. Computation and payment. 27
(1) The tax shall be computed upon the net income of the estate or trust, and28
shall be paid by the fiduciary, except as provided in R.S. 47:186, relating to29 HLS 13RS-902 ORIGINAL
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revocable trusts, and R.S. 47:187 relating to income for benefit of the grantor. For1
return made by the beneficiary see R.S. 47:162. 2
(2) The amount of a net operating loss for any tax year beginning on or after3
January 1, 1992, may be deducted from net income in any of the fifteen years4
immediately following the year in which the loss occurred. 5
C. B. Exceptions. If a trust is a simple trust as defined under Internal6
Revenue Code Section 651 or a grantor trust as defined under R.S. 47:187, it shall7
not have to file a Louisiana income tax return if the following conditions are met: 8
(1) Such trust does not have any net taxable income for the taxable period.9
(2) Such trust does not have any nonresident beneficiaries. 10
* * *11
SUBPART F. NONRESIDENT INDIVIDUALS12
AND CORPORATIONS13
§241. Net income subject to tax 14
The net income of a nonresident individual or a corporation subject to the tax15
imposed by this Chapter shall be the sum of the net allocable income earned within16
or derived from sources within this state, as defined in R.S. 47:243, and the net17
apportionable income derived from sources in this state, as defined in R.S. 47:244,18
less the amount of federal income taxes attributable to the net allocable income and19
net apportionable income derived from sources in this state. The amount of federal20
income taxes to be so deducted shall be that portion of the total federal income tax21
which is levied with respect to the particular income derived from sources in this22
state to be computed in accordance with rules and regulations of the collector23
secretary of revenue. Proper adjustment shall be made for the actual tax rates24
applying to different classes of income and for all differences in the computation of25
net income for purposes of federal income taxation as compared to the computation26
of net income under this Chapter. Where the allocation of the tax is to be based on27
a ratio of the amount of net income of a particular class, both the numerator and the28 HLS 13RS-902 ORIGINAL
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denominator of the fraction used in determining the ratio shall be computed on the1
basis that such net income is determined for federal income tax purposes.2
* * *3
Section 2. R.S. 47:101(A), 112, 116, 201, 290, 292, 295, 300.1, and 300.2 are hereby4
repealed in their entirety.5
Section 3. This Act shall become effective on January 1, 2014.6
DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part
of the legislative instrument. The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
Robideaux HB No. 639
Abstract: Repeals the state tax levied on the taxable income of individuals and estates and
repeals provisions relative to the administration and filing of such tax.
Present law imposes an income tax on individuals at the following rate:
(1)2% on the first $12,500 of tax table income
(2)4% on the next $37,500 of tax table income
(3)6% on all tax table income over $50,000
Present law provides for various administrative and other provisions relating to the
imposition, withholding, payment, and collection of the tax.
Proposed law repeals present law.
Effective January 1, 2014.
(Amends R.S. 47:31, 32, 181, and 241; Repeals R.S. 47:101(A), 112, 116, 201, 290, 292,
295, 300.1, and 300.2)