HLS 15RS-1666 ORIGINAL
2015 Regular Session
HOUSE BILL NO. 827
BY REPRESENTATIVE HENRY
TAX/CORP INCOME: Phases out corporation income tax
1 AN ACT
2To amend and reenact R.S. 47:287.11 and to enact R.S. 47:32(D), relative to the phasing-out
3 of certain taxes levied on corporations; to provide for a reduction and eventual
4 elimination of the corporation income tax over a certain period of time; to provide
5 for an effective date; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1. R.S. 47:287.11 is hereby amended and reenacted and R.S. 47:32(D) is
8hereby enacted to read as follows:
9 §32. Rates of tax
10 * * *
11 D.(1) Notwithstanding the provisions of Subsection C of this Section, the
12 rates applicable to each class of taxpayer as set forth in Subsection A of this Section
13 shall be as follows:
14 (a) For tax years beginning during 2015, eighty percent of the rates provided
15 for in Subsection C of this Section.
16 (b) For tax years beginning during 2016, sixty percent of the rates provided
17 for in Subsection C of this Section.
18 (c) For tax years beginning during 2017, forty percent of the rates provided
19 for in Subsection C of this Section.
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HB NO. 827
1 (d) For tax years beginning during 2018, twenty percent of the rates provided
2 for in Subsection C of this Section.
3 (2) No tax shall be assessed, levied, collected, or paid upon the income of a
4 corporation for any tax year commencing on or after January 1, 2019.
5 * * *
6 §287.11. Tax imposed; reduction
7 A. Except as provided in Subsection D of this Section, there There shall be
8 levied, collected, and paid for each taxable year a tax upon the Louisiana taxable
9 income of corporations and other entities taxed as corporations for federal income
10 tax purposes, which entities shall be considered to be corporations for the purposes
11 of this Chapter only, other than insurance companies as hereinafter provided.
12 B. Corporations shall be taxed on their Louisiana taxable income, except as
13 otherwise exempted.
14 C. Taxable years affected.
15 (1) The provisions of this Part shall apply to taxable years beginning after
16 December 31, 1986, including taxable years deemed to have commenced on January
17 1, 1987, by the provisions of R.S. 47:287.443.
18 (2) Taxable years beginning prior to January 1, 1987, shall not be affected
19 by the provisions of this Part, but shall remain subject to the applicable provisions
20 of R.S. 47:21 et seq.
21 D.(1) For taxable years beginning January 1, 2015, the tax levied pursuant
22 to the provisions of this Part shall be limited to the following percentages of the
23 amount otherwise levied pursuant to the provisions of this Part:
24 (a) For taxable years beginning on or after January 1, 2015, and before
25 January 1, 2016, eighty percent.
26 (b) For taxable years beginning on or after January 1, 2016, and before
27 January 1, 2017, sixty percent.
28 (c) For taxable years beginning on or after January 1, 2017, and before
29 January 1, 2018, forty percent.
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HB NO. 827
1 (d) For taxable years beginning on or after January 1, 2018, and before
2 January 1, 2019, twenty percent.
3 (2) For taxable years beginning on or after January 1, 2019, no corporation
4 income tax shall be assessed, levied, or collected by the state nor paid by domestic
5 or foreign corporations on taxable income.
6 E. Insurance companies shall not be subject to this Part but shall continue to
7 be taxed pursuant to the provisions of R.S. 47:21 and R.S. 47:221 et seq., and as
8 otherwise provided by law.
9 Section 2. This Act shall become effective upon signature by the governor or, if not
10signed by the governor, upon expiration of the time for bills to become law without signature
11by the governor, as provided by Article III, Section 18 of the Constitution of Louisiana. If
12vetoed by the governor and subsequently approved by the legislature, this Act shall become
13effective on the day following such approval.
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)]
HB 827 Original 2015 Regular Session Henry
Abstract: Provides for the phasing-out of the corporation income tax over a period of 5
years.
Present law (R.S. 47:32(C)) provides for a tax to be assessed, levied, collected, and paid
upon the taxable income of corporations to be computed as follows:
(1)4% on the first $25,000.
(2)5% on amounts between $25,001 and $50,000.
(3)6% on amounts between $50,001 and $100,000.
(4)7% on amounts between $100,001 and $200,000.
(5)8% on all amounts above $200,000.
Proposed law changes present law by requiring a phase out of the state tax on the net
income of corporations as follows:
(1)For tax years beginning during 2015, 80% of the rates provided for in present law.
(2)For tax years beginning during 2016, 60% of the rates provided for in present law.
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HB NO. 827
(3)For tax years beginning during 2017, 40% of the rates provided for in present
law.
(4)For tax years beginning during 2018, 20% of the rates provided for in present
law.
(5)No tax shall be assessed, levied, collected, or paid upon the income of a
corporation for any tax year commencing on or after Jan. 1, 2019.
Present law (R.S. 47:287.2 et seq) establishes the corporation income tax and levies such
tax on corporations and entities taxed as corporations for federal income tax purposes.
Proposed law phases out present law, as more fully explained below.
Present law further provides that such tax is not levied on insurance companies.
Proposed law retains present law.
Present law provides that the tax shall be levied on Louisiana taxable income at the
following rates:
(1)4% on the first $25,000.
(2)5% on amounts between $25,001 and $50,000.
(3)6% on amounts between $50,001 and $100,000.
(4)7% on amounts between $100,001 and $200,000.
(5)8% on all amounts above $200,000.
Proposed law retains present law but provides that the amounts levied under present law
shall be reduced by a cumulative 20% each year over the next 5 years until the amount
levied is eliminated. Proposed law further provides that in taxable years beginning on or
after Jan. 1, 2019, no corporation income tax shall be assessed or paid.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 47:287.11; Adds R.S. 47:32(D))
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