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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, 2013
SENATE BILL NO. 138
BY SENATOR MORRISH
TAX/TAXATION. Phases out the individual and corporate income tax over 10 calendar
years beginning in Tax Year 2014. (gov sig)
AN ACT1
To enact R.S. 47:32(D), relative to income taxes; to phase out the taxes on personal and2
corporate income and the income of estates and trusts; and to provide for related3
matters.4
Be it enacted by the Legislature of Louisiana:5
Section 1. R.S. 47:32(D) is hereby enacted to read as follows: 6
ยง32. Rates of tax7
* * *8
D.(1) Notwithstanding the provisions of Subsections A and C of this9
Section and the provisions of R.S. 47:300.1, the rates applicable to each class of10
taxpayer as set forth in those provisions shall be phased out over a ten-calendar-11
year period as follows:12
(a) For tax years beginning during 2014, ninety percent of the rates13
provided for in those provisions.14
(b) For tax years beginning during 2015, eighty percent of the rates15
provided for in those provisions.16
(c) For tax years beginning during 2016, seventy percent of the rates17 SB NO. 138
SLS 13RS-440 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
provided for in those provisions.1
(d) For tax years beginning during 2017, sixty percent of the rates2
provided for in those provisions.3
(e) For tax years beginning during 2018, fifty percent of the rates4
provided for in those provisions.5
(f) For tax years beginning during 2019, forty percent of the rates6
provided for in those provisions.7
(g) For tax years beginning during 2020, thirty percent of the rates8
provided for in those provisions.9
(h) For tax years beginning during 2021, twenty percent of the rates10
provided for in those provisions.11
(i) For tax years beginning during 2022, ten percent of the rates provided12
for in those provisions.13
(2) No tax shall be assessed, levied, collected, or paid upon the income14
of an individual, a corporation, or an estate or trust for any tax year15
commencing on or after January 1, 2023.16
Section 2. This Act shall become effective upon signature by the governor or, if not17
signed by the governor, upon expiration of the time for bills to become law without signature18
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If19
vetoed by the governor and subsequently approved by the legislature, this Act shall become20
effective on the day following such approval.21
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Riley Boudreaux.
DIGEST
Present law provides tax rates on individual 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% on the next $37,500 of net income.
6% on any amount of net income in excess of $50,000 of net income. SB NO. 138
SLS 13RS-440 ORIGINAL
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
Estates and trusts rates
2% on the $10,000 of Louisiana taxable income.
4% on the next $40,000.
6% on Louisiana taxable income in excess of $50,000.
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.
8% on all net income in excess of $200,000.
Proposed law phases out the individual and corporate income tax over 10 calendar years by
reducing the above rates 10% per calendar year, beginning with calendar year 2014 and
ending in calendar year 2023, when no individual or corporate income tax would be due.
For instance, for tax years beginning in 2014, tax would be assessed at 90% of the rates
above; for tax years beginning in 2015, 80%; 2016, 70%, etc.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:32(D))