Defines "resident of the state" for the purpose of determining liability for individual income tax. (1/1/15) (OR DECREASE GF RV See Note)
Impact
If enacted, SB 267 will change the way residency is determined for tax purposes, potentially affecting many individuals who live in Louisiana seasonally or maintain residences in multiple states. The bill intends to simplify tax responsibilities by clearly defining residency, which may result in more individuals being classified as residents and thereby subject to Louisiana’s income tax. This could bolster state revenues but might also create challenges for those who spend significant time outside the state, as they would face personal income tax obligations despite not primarily residing there.
Summary
Senate Bill 267, introduced by Senator Dorsey-Colomb, aims to define 'resident of the state' in order to clarify the criteria used to determine liability for individual income tax in Louisiana. Under the current law, residents must pay tax on income from all sources. The bill proposes to adopt a broader definition of residency, entailing that any natural person who has a residence in the state should be classified as a resident, unless they meet specific criteria indicating a primary connection to another state. These criteria include having a primary residence outside Louisiana, spending more than half of the year outside the state, not registering to vote in Louisiana, and not claiming a homestead exemption in the state.
Sentiment
The sentiment surrounding SB 267 is somewhat mixed. Proponents see the bill as a necessary reform that will provide clarity and eliminate ambiguity in existing tax laws. They argue that a clear definition of residency is essential for fair tax administration. However, critics argue that the new definition could disproportionately affect those who may not consider Louisiana their primary residence, potentially leading to tax burdens on individuals who have significant ties to other states. Concerns have been raised that the bill may inadvertently target seasonal residents or those who have recently moved.
Contention
Notable points of contention include concerns from individuals who may be classified as residents under the new law yet feel their primary economic ties lie elsewhere. This debate raises critical questions about state authority versus individual rights, especially regarding taxation based on residency. Furthermore, opponents warn that such a change could dissuade individuals from living or vacationing in Louisiana, thus impacting the state’s economy in the long term.
Reduces the rates and brackets for purposes of calculating individual income tax liability and the tax liability for estates and trusts and modifies certain income tax credits, exemptions, and deductions (OR +$172,000,000 GF RV See Note)
Provides a tax credit against individual state income tax for the amount of sales tax paid by homeowners when purchasing green materials for residential home building or remodeling. (8/15/11) (OR DECREASE GF RV See Note)
Changes the rates and brackets for purposes of calculating individual income tax liability and eliminates or modifies certain deductions, exemptions, and credits (EG DECREASE GF RV See Note)
Reduces the tax rates for purposes of calculating individual income tax liability and the tax liability for estates and trusts (OR -$247,300,000 GF RV See Note)
Provides for a flat rate for purposes of calculating income tax for individuals, estates, and trusts, increases the standard deduction, and modifies or repeals certain income tax deductions and credits (Item #5 and 6) (RE1 DECREASE GF RV See Note)
Requests that the Bd. of Regents and the State Bd. of Elementary and Secondary Education, with the Taylor Foundation, La. Office of Student Financial Assistance, public postsecondary education management boards, and certain others, study certain issues relative to TOPS
Requests the Louisiana Workforce Commission and the Louisiana Department of Veterans Affairs to study employment practices and professional licensing requirements to benefit veterans in the workforce
Creates a task force to study meaningful oversight of the professional healthcare licensing boards statutorily created within the Department of Health and Hospitals.