Louisiana House Bill HB585

Louisiana 2015 Regular Session

• Introduced: 4/3/15
• Refer: 4/3/15
• Refer: 4/13/15

Caption

Exempts income received by individuals from public retirement systems of other states from state income taxation (OR DECREASE GF RV See Note)

Impact

The implementation of HB 585 would lead to changes in state tax regulations by explicitly exempting public retirement benefits received from other states from being taxed. This exemption is set to take effect for all tax years beginning on or after January 1, 2016. The bill is expected to influence the state's overall revenue from income tax, as a decline in tax income could occur if a significant number of retirees from other states decide to relocate to Louisiana due to this financial incentive.

Summary

House Bill 585 aims to provide a significant tax exemption for individuals receiving income from public state retirement systems of other states in the United States. Specifically, the bill proposes that such income will no longer be subject to state income tax, thus allowing retirees from other states to retain more of their income. This measure is seen as a way to attract retired individuals who may have pension income from other states, potentially enhancing the state’s economic environment by allowing these retirees to spend more within Louisiana.

Sentiment

The sentiment surrounding HB 585 appears to be largely positive among supporters, who argue that this tax exemption will not only benefit retirees but also encourage economic growth through increased consumer spending. However, there are concerns from some legislators regarding potential revenue loss for the state budget. Critics may view the bill as prioritizing the financial interests of out-of-state retirees over in-state residents, particularly those who may not receive such tax benefits.

Contention

Notable contentions around HB 585 stem from the implications of the tax exemption on the state’s finances. Opponents worry that while the bill aims to encourage population inflow through appealing to retirees, it may inadvertently strain state resources if it leads to a significant tax revenue shortfall. The discussion reflects a broader debate about tax policy fairness and the balance between attracting new residents versus supporting existing ones.