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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. 146
BY SENATOR ERDEY
TAX EXEMPTIONS. Phases in certain exemptions for capital gains income and investment
income of an individual 65 years of age or older from state individual income tax. (gov sig)
AN ACT1
To enact R.S. 47:297.13 and 297.14, relative to the individual income tax; to phase in an2
exemption of capital gains income of certain persons from state income taxation; to3
phase in an exemption of investment income of certain persons from state income4
taxation; to provide with respect to terms and definitions; to provide for an effective5
date; and to provide for related matters.6
Be it enacted by the Legislature of Louisiana:7
Section 1. R.S. 47:297.13 and 297.14 are hereby enacted to read as follows: 8
§297.13. Capital gains income; exemption from taxation9
A. Capital gains income received by an individual sixty-five years of age10
or older shall be exempt from state income taxation. The exemption shall be11
phased-in using the following percentages:12
(1) For tax years beginning in 2013, twenty percent of the capital gains13
income.14
(2) For tax years beginning in 2014, forty percent of the capital gains15
income.16
(3) For tax years beginning in 2015, sixty percent of the capital gains17 SB NO. 146
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
income.1
(4) For tax years beginning in 2016, eighty percent of the capital gains2
income.3
(5) For tax years beginning on January 1, 2017, and after, one hundred4
percent of the capital gains income.5
B. For purposes of this Section, "capital gains income" consists of net6
long-term capital gains as defined in the Federal Internal Revenue Code and7
properly reported on Schedule D of Form 1040, line 15, filed by the individual8
for the same tax year.9
§297.14. Investment income; exemption from taxation10
A. Investment income received by an individual sixty-five years of age11
or older shall be exempt from state income taxation. The exemption shall be12
phased-in for the following tax years and using the following percentages:13
(1) For tax years beginning in 2013, twenty percent of the investment14
income.15
(2) For tax years beginning in 2014, forty percent of the investment16
income.17
(3) For tax years beginning in 2015, sixty percent of the investment18
income.19
(4) For tax years beginning in 2016, eighty percent of the investment20
income.21
(5) For tax years beginning on January 1, 2017, and after, one hundred22
percent of the investment income.23
B. For purposes of this Section, "investment income" shall include24
dividend and interest income received by an individual sixty-five years of age25
or older.26
Section 2. This Act shall become effective upon signature by the governor or, if not27
signed by the governor, upon expiration of the time for bills to become law without signature28
by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If29 SB NO. 146
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Coding: Words which are struck through are deletions from existing law;
words in boldface type and underscored are additions.
vetoed by the governor and subsequently approved by the legislature, this Act shall become1
effective on the day following such approval.2
The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jerry J. Guillot.
DIGEST
Proposed law exempts capital gains income for individuals 65 years of age or older from
state income tax. Proposed law provides that the exemption of the capital gains income shall
be phased-in over a five year period as follows:
(1)For tax years beginning in 2013, 20% of the capital gains income.
(2)For tax years beginning in 2014, 40% of the capital gains income.
(3)For tax years beginning in 2015, 60% of the capital gains income.
(4)For tax years beginning in 2016, 80% of the capital gains income.
(5)For tax years beginning on January 1, 2017, and after, 100% of the capital gains
income.
Proposed law further provides that capital gains income consists of net long-term capital
gains as defined in the Federal Internal Revenue Code and properly reported on Schedule
D of Form 1040, line 15, filed by the individual for the same tax year.
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 2013, 20% of the investment income.
(2)For tax years beginning in 2014, 40% of the investment income.
(3)For tax years beginning in 2015, 60% of the investment income.
(4)For tax years beginning in 2016, 80% of the investment income.
(5)For tax years beginning on January 1, 2017, and after, 100% of the investment
income.
Proposed law defines "investment income" to include dividend and interest income.
Effective upon signature of the governor or lapse of time for gubernatorial action.
(Adds R.S. 47:297.13 and 297.14)